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        &lt;img src=&quot;/media/2fvbih4z/d08df52d-8aa5-3731-4af5-faf6826761bb.jpg&quot; alt=&quot;MMM 30th June Image&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
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&lt;p&gt;Welcome to Ideal Homes Portugal’s MoneyMatters Monday, your trusted weekly newsletter delivering fresh expert insights into international real estate investing.&lt;/p&gt;
    &lt;p class=&quot;center-small-ss f-left&quot;&gt;
        &lt;img src=&quot;/media/nxlps34c/1e69f26a-6785-d432-9967-7d70a728d664.jpg&quot; alt=&quot;Alejandro and Claire Banner Image&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
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&lt;p&gt;With foreigners continuing to invest in Portugal’s property market in 2025, understanding the full cost of purchase is essential - especially for those financing with a mortgage or buying from abroad.&lt;/p&gt;
&lt;p&gt;In this week&#39;s Money Matters,&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;Alejandro Arredondo,&lt;span&gt;&#160;&lt;/span&gt;&lt;/strong&gt;mortgage expert at Ideal Homes Portugal, explains that extra costs like taxes, legal fees, and bank charges can add up to 7%–10% beyond the purchase price. These vary based on property type, location, and intended use. Meanwhile,&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;Claire Wheatley,&lt;/strong&gt;&lt;span&gt;&#160;Founder and CEO of Moving Currency, highlights a frequently overlooked factor: currency exchange. For buyers converting from pounds, dollars, or other currencies, fluctuating rates can have a major impact on the final euro cost of a property.&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span&gt;Read on for expert tips and a closer look at a standout investment in the Algarve.&lt;/span&gt;&lt;/p&gt;
&lt;hr&gt;
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&lt;p&gt;&#160;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Thinking of buying a property in Portugal with a mortgage? While the process is relatively straightforward, there are a few costs beyond the purchase price that can catch first-time buyers off guard if uninformed. Whether you’re budgeting for a holiday home, investment property, or a permanent move, it’s important to know what to expect. When financing with a mortgage, in Portugal, additional expenses can typically add up to 7% to 10% (or even more) of the property’s purchase price. These vary depending on the type of property, its location, whether it’s a primary residence or a secondary home, and other factors. Below, I’ve provided a practical breakdown of the key costs to plan for.&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;1. IMT (Imposto Municipal sobre as Transmiss&#245;es Onerosas de Im&#243;veis) - Property Transfer Tax:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;This is usually the most significant cost.It&#39;s a progressive tax based on the property&#39;s value and purpose (primary residence vs. secondary/investment).&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;Rates generally range from 0% to 8%.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;For primary residences, lower value properties might be exempt, and the rates scale up to around 6%.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;For secondary homes or investment properties, the rates are generally higher, up to 7.5% or 8%.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Rural properties typically have a 5% IMT, and commercial properties have a 6.5% rate.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;IMT Jovem scheme (launched in 2024) offers exemptions for buyers under 35 for both nationals and non-nationals with permanent residence and generating income in Portugal.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Stamp Duty (Imposto do Selo) on Property Purchase: A flat rate of 0.8% of the purchase price.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;2. Notary and Registration Fees:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;These fees cover the legal validation of the property purchase and its registration at the Land Registry.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Typically range from 1.5% to 2% of the property&#39;s value, or around €800 to €1500 for notary and registration combined, but can increase with higher property values or complexity.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Specific Land Registry fees for requesting a permanent certificate are around €15-€20.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;3. Legal Fees:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;It&#39;s highly recommended to hire a lawyer for the purchase process.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Legal fees generally range from 1% to 1.5% (+VAT) of the property&#39;s purchase price, with a minimum fee often around €3,000.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;4. Mortgage-Related Costs:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Bank Valuation Fees:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The bank will require a valuation of the property to assess its collateral value. This typically costs around €280 - €500.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Mortgage Arrangement/Administration Fees:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;These are fees charged by the bank for setting up the mortgage. They can vary from a fixed fee (e.g., €290) to a percentage of the mortgage amount (e.g., 1% to1.5%).&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;Stamp Duty (Imposto do Selo) on the Mortgage:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;An additional stamp duty is levied on the mortgage loan itself, typically 0.6% of the mortgage amount.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Mortgage Deed Registration Fees:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;There will be a separate registration fee for the mortgage deed at the Land Registry, adding to the total registration costs.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Life and Home Insurance:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Banks often require borrowers to take out life insurance and home insurance as a condition for the mortgage. These are ongoing costs, but the initial setup might involve fees.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;5. Other Potential Costs:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Property Survey:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;While not always mandatory, a property survey is often recommended, especially for older properties, to identify any structural issues. The cost will vary depending on the scope of the survey.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Currency Transfer Costs:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;If you are transferring funds from another country, consider the exchange rates and any fees charged by currency exchange services.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Financial Advisory Fees (if using a mortgage broker):&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;If you use a mortgage broker, they may charge a fee, often around 1%of the mortgage amount.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Approximate Total Cost (Excluding Purchase Price):&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;As a general rule of thumb, you should budget an additional 8% to 12% of the property&#39;s purchase price to cover all these associated costs when buying with a mortgage. For example, on a €200,000 property, you might expect to pay an additional €16,000 to €24,000 in fees and taxes.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;Important Considerations:&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Non-Resident Mortgage Deposit:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;For non-residents, Portuguese banks typically offer a loan-to-value (LTV) ratio of 70% to 80%, meaning you&#39;ll need a down payment of 30% to 40% of the purchase price, plus the additional closing costs.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Loan-to-Value (LTV):&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;The maximum LTV can go up to 90% for residents buying their primary home, but is lower for non-residents.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;&#160;Interest Rates:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Mortgage interest rates in Portugal can be fixed, variable (linked to Euribor), or mixed. They vary depending on the bank, loan term, and borrower profile.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;&lt;strong&gt;Debt-to-Income Ratio:&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Portuguese banks typically prefer a debt-to-income ratio of up to 40%, meaning your total monthly debt commitments (including the new mortgage) should not exceed this percentage of your net income.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p class=&quot;last-child&quot;&gt;&lt;em&gt;To get an accurate estimate for your specific situation, it&#39;s highly recommended to use an online IMT calculator (many Portuguese real estate and legal websites offer these) and consult with a local lawyer or mortgage broker. Here at Ideal Homes Portugal we’re always happy to help. For amore detailed personal consultation, book a call today!&lt;span&gt;&#160;&lt;/span&gt;&lt;/em&gt;&lt;a rel=&quot;noopener&quot; href=&quot;mailto:info@idealhomesmortgages.com?subject=Money%20Matters%20-%20I%20want%20to%20know%20more%20about%20Portugal%20Mortgages&amp;amp;body=&quot; target=&quot;_blank&quot; data-anchor=&quot;?subject=Money%20Matters%20-%20I%20want%20to%20know%20more%20about%20Portugal%20Mortgages&amp;amp;body=&quot;&gt;&lt;em&gt;&lt;strong&gt;- Alejandro&lt;/strong&gt;&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;hr&gt;
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        &lt;img src=&quot;/media/sq3kk3hb/659be638-77f1-9bff-6ff1-a047ad75528c.png&quot; alt=&quot;Property Spotlight IDH33603&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p&gt;&lt;strong&gt;Spotlight Property: 3 Bedroom, 2 Unit Townhouse | Guia&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;&lt;span&gt;Price: €425,000 |&#160;&lt;/span&gt;&lt;/strong&gt;&lt;a rel=&quot;noopener&quot; href=&quot;https://www.idealhomesportugal.com/property/townhouse-in-algarve-idh33603-albufeira-94337/94337&quot; target=&quot;_blank&quot;&gt;&lt;strong&gt;Ref. IDH33603&lt;/strong&gt;&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;Perfectly positioned in the charming village of Guia, this fully renovated, stylish 3-bedroom semi-detached townhouse offers a rare blend of traditional charm and contemporary comfort. Set on a 75 m&#178; plot with 110.75 m&#178; of gross private area, the property has been thoughtfully redesigned by a renowned interior architect to maximise space, natural light, and modern lifestyle features. Currently configured as two fully independent apartments, each with a private entrance, this property offers outstanding flexibility.&lt;/p&gt;
&lt;p&gt;Located just 10 minutes from Albufeira’s pristine beaches - such as Praia da Gal&#233; and Praia dos Salgados - and 5 minutes from Algarve Shopping, the home is ideally situated for permanent residence, a holiday escape, or a lucrative rental investment.&lt;/p&gt;
&lt;p&gt;The main residence features:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;A stylish open-plan kitchen with integrated modern appliances&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Bright living and dining areas that open to a private interior patio with barbecue and lounge zone&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Two spacious ensuite bedrooms, including a master suite with large private terrace&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;Energy-efficient air conditioning, solar water heating, double-glazed windows, and electric shutters&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p class=&quot;&quot;&gt;The second unit is equally well-appointed, with:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p class=&quot;&quot;&gt;An open-concept living, dining, and kitchen area&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p class=&quot;&quot;&gt;Ground-floor bathroom and a large ensuite bedroom upstairs with built-in wardrobes&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p class=&quot;&quot;&gt;Private patio with BBQ and outdoor dining area&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p class=&quot;&quot;&gt;Premium finishes and natural light throughout&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;Additional features include private parking with potential for EV charging, high-quality furnishings, and a rooftop terrace offering excellent sun exposure.&lt;/p&gt;
&lt;p&gt;Guia is famous for its gastronomic heritage—especially the iconic Frango Piri-Piri—and offers a lifestyle rich in authenticity, with local restaurants, caf&#233;s, and village charm all at your doorstep. The dual-living layout can be easily converted back into a spacious single-family home if desired.&lt;/p&gt;
&lt;p class=&quot;last-child&quot;&gt;This is a turnkey opportunity for those seeking modern convenience in a traditional Algarve setting, with excellent rental potential and long-term value.&lt;/p&gt;
&lt;hr&gt;
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        &lt;img src=&quot;/media/oxkcjvyn/88faa4c0-ab43-f067-e9ec-b5789808bf8e.jpg&quot; alt=&quot;Moving-Currency-currency-exchange-a-key-factor-in-your-total-property-costs&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;em&gt;When calculating the total cost of buying your property in Portugal, most buyers account for the property price, legal fees, IMT (property transfer tax), notary costs, and perhaps even furniture and renovation expenses. But one vital factor is often missed: the impact of currency exchange rates. If you&#39;re purchasing from outside of Portugal for example, from the UK, USA, or Canada, then you&#39;ll need to convert your home currency into euros. And this is where many buyers are caught out. Exchange rates fluctuate daily, and this can make a significant difference to the final cost of your property in your home currency.&lt;/em&gt;&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;Let’s look at an example:&lt;/strong&gt;&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;A €350,000 property could cost:&lt;/p&gt;
&lt;ul style=&quot;font-weight: 400;&quot;&gt;
&lt;li&gt;$402,500 at an exchange rate of 1.15&lt;/li&gt;
&lt;li&gt;&#163;367,500 at a rate of 1.05&lt;/li&gt;
&lt;/ul&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;That’s a difference of $34,500 purely due to currency movement.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;And it&#39;s not just buyers from the US. UK clients have also seen volatility this year, with GBP/EUR rates moving enough to impact budgets by thousands of pounds.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;Why Timing Matters&lt;/strong&gt;&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;Buyers often transfer funds at the last minute, thinking the rate on the day is just part of the process. But that approach can lead to unnecessary stress and unexpected costs especially if the rate dips just before completion.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;With the right planning, you can secure an exchange rate in advance using a forward contract, locking in a known euro amount for a future date. This can be especially useful for off-plan purchases or anyone buying subject to mortgage approval, legal checks, or Visa timelines.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;Work With a Specialist&lt;/strong&gt;&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;At Moving Currency, we help&#160;&lt;strong&gt;Ideal Homes Portugal’s&lt;/strong&gt;&#160;clients:&lt;/p&gt;
&lt;ul style=&quot;font-weight: 400;&quot;&gt;
&lt;li&gt;Monitor the market and get notified when rates move in your favour.&lt;/li&gt;
&lt;li&gt;Lock in a rate up to 12 months in advance (helping you budget with certainty).&lt;/li&gt;
&lt;li&gt;Receive personal support and fast, secure transfers.&lt;/li&gt;
&lt;li&gt;Avoid paying more than you need to with high-street bank rates.&lt;/li&gt;
&lt;/ul&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;We believe that getting your currency strategy right is just as important as choosing the right property. A 3–5% saving on your transfer could free up funds for renovations, furnishings, or simply a celebratory glass of wine on the terrace.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;Our Top Tips:&lt;/strong&gt;&lt;/p&gt;
&lt;ul style=&quot;font-weight: 400;&quot;&gt;
&lt;li&gt;Speak to us early, ideally before placing a deposit.&lt;/li&gt;
&lt;li&gt;Know your target rate and have a plan if the market shifts.&lt;/li&gt;
&lt;li&gt;Don’t assume your bank offers the best deal, specialist providers often save clients thousands.&lt;/li&gt;
&lt;/ul&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;em&gt;We’re here to help guide you through the process, protect your budget, and make sure there are no surprises when it’s time to transfer your funds. A smart currency plan is part of a smart property purchase.&#160;&lt;/em&gt;&lt;a href=&quot;mailto:idealcurrency@idealhomesportugal.com?subject=MM%20-%20More%20Currency%20Info%20Please!&amp;amp;body=&quot;&gt;&lt;em&gt;&lt;strong&gt;- Claire&lt;/strong&gt;&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;hr&gt;
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        &lt;img src=&quot;/media/2t2eciz3/2268494f-5682-20ef-1ea9-df201f3ecc0e-1.png&quot; alt=&quot;first-movers-image&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p&gt;Looking to maximise capital appreciation with early access to real estate opportunities? We’re launching&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;MoneyMatters – FirstMovers Investment Club&lt;/strong&gt;&lt;span&gt;&#160;your exclusive gateway to off-plan developments and high-potential projects in the Algarve, Portugal, and beyond.&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;mcePastedContent&quot;&gt;As a member, you’ll gain&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;insider access&lt;/strong&gt;&lt;span&gt;&#160;to our wide network of real estate developers, banking partners, mortgage and insurance providers, and more. You’ll also benefit from&#160;&lt;/span&gt;&lt;strong&gt;early updates&lt;/strong&gt;,&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;priority access&lt;/strong&gt;, and&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;exclusive insights&lt;/strong&gt;&lt;span&gt;&#160;into high-potential real estate opportunities to stay ahead of the market and capitalise on the benefits of early-stage investment.&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;mcePastedContent last-child&quot;&gt;We’re currently accepting registrations before launching the club as a paid membership, offering even greater benefits.&lt;span&gt;&#160;&lt;/span&gt;&lt;strong&gt;Register Below&lt;/strong&gt;&lt;span&gt;&#160;and be among the first to position yourself for success or contact us to learn more, and schedule a private consultation.&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;mcePastedContent last-child&quot;&gt;&lt;span&gt;Secure your access:&#160;&lt;a href=&quot;mailto:firstmovers@idealhomesportugal.com&quot; title=&quot;FirstMovers Sign Up&quot;&gt;&lt;strong&gt;Register Now!&lt;/strong&gt;&lt;/a&gt;&lt;/span&gt;&lt;/p&gt;
&lt;hr&gt;
&lt;p class=&quot;mcePastedContent last-child&quot;&gt;&lt;span&gt;Stay tuned for expert interviews, global property trends, and success stories to guide your investments with confidence. Have questions, topic suggestions, or need help with your property search? &#160;Reach out anytime. Until next Monday!&lt;/span&gt;&lt;/p&gt;

MoneyMatters: The True Costs of Buying in Portugal. What Foreign Investors Need to Know

Welcome to Ideal Homes Portugal’s MoneyMatters Monday, your trusted weekly newsletter delivering fresh expert insights into international real estate inves