In Portugal the tax bill is largely the same for a new home and a resale one. The real difference is legal protection, paperwork and condition.
A new-build and a resale home in Portugal can look alike on a listing and be very different in the paperwork. The main fork is not tax, it is what protects you if something turns out to be wrong. The points below are summarised from law-firm and agency sources as of 2026; confirm them with a Portuguese lawyer before you commit.
Tax: mostly the same
Buying from a developer does not replace the transfer tax. Sources agree that the transfer of a building is VAT-exempt under Article 9(30) of the VAT Code, so a buyer of a new home pays IMT (the property transfer tax) and stamp duty (Imposto do Selo, 0.8% of the price) just as on a resale. The newest layer applies to both: from 25 May 2026 a flat 7.5% IMT applies to housing bought by non-tax-residents, with exceptions, which we cover in our Portugal mortgage guide. In practice there is no tax discount for choosing new, so compare on price, condition and protection.
Legal protection
- Defects: for residential property bought by a consumer, law firms summarise Decree-Law 84/2021 as a 10-year warranty for structural elements and 5 years for other defects. Who is liable, the seller or the builder, depends on the contract, so ask your lawyer.
- Paperwork: since the Simplex Urbanístico reform (Decree-Law 10/2024) the licença de utilização is no longer a standalone requirement in many situations. Have a lawyer confirm what proves that the building is legally approved for housing instead of simply asking for the old certificate.
- Off-plan: Portuguese law does not impose a single mandatory scheme for protecting buyers' payments. A bank guarantee or an escrow account has to be negotiated into the pre-contract (CPCV). Deposits are typically 10% to 20%. Ask for the developer's commercial registry certificate.
Resale: what to check
Older homes can hide undocumented extensions, old wiring and plumbing, weak insulation and renovation costs the price does not show. Ask for the land registry and tax records, the energy certificate and the condominium accounts, and commission a survey. Renovation budgets vary too widely to quote responsibly, so get builders' quotes before you make an offer.
Price trend
INE data for the first quarter of 2026, as reported, show existing homes up 19.7% year on year against 12.6% for new homes, with a national median of about €2,337 per m². Resale prices have been rising faster, which narrows the gap that used to make new builds look expensive. Compare local listings, not national averages.
How to decide
- Choose new if you want warranty cover, low near-term maintenance and a clean paper trail, and you accept paying the developer's margin and waiting if it is off-plan.
- Choose resale if location, character or immediate availability matter more and you will budget for a survey and renovation.
- Go off-plan only with a bank guarantee or escrow written into the CPCV.
FAQ
Do I pay VAT on a new home in Portugal? Sources report that the transfer is VAT-exempt and you pay IMT plus stamp duty instead; confirm it in your contract. Is the 7.5% non-resident IMT different for new builds? No, it applies to housing bought by non-tax-residents regardless of age, subject to exceptions. How long is the defect warranty? It is summarised as 10 years for structural elements and 5 years for other defects on consumer residential purchases; ask a lawyer how it applies to your deal. Is an off-plan deposit protected automatically? No, protection has to be negotiated into the contract.
How we help
We help you compare specific new-build and resale options, check the paperwork with a local lawyer and negotiate payment protection for off-plan deals. Informational only, not legal, tax or investment advice; rules change, so confirm the current position for your property before relying on it.