If considered in purely economical and financial terms, there can be broadly two major kinds of property. The first refers to movable properties like appliances and objects while immovable properties refer to houses and buildings i.e. any construction above the land surface which cannot be moved.
 
Portugal has slowly emerged as one of the premier first world countries and in terms of economic prosperity it has consolidated its position in the world market. In Portugal, the complex legal and administrative procedures are often a hurdle before any form of transaction related to property. Therefore, in case of buying a property by means of mortgaging or directly through cash, there are certain other expenses which have to be met by the buyer before he becomes the owner of the property. These are the following:-

• Property tax or Imposto Municipal sobre Transmissoes - this has to be paid by the purchaser according to the regulations stated by the Portuguese government. In case of urban properties, around 6.5% will be confiscated by the government while the figure is a bit lower, around 5% for properties in the outskirts of the city.
• Deposits or Entrada – it varies between 10% and 20% of the actual price of purchase.
• The expenses for mortgage or Credito Habitacao
• Stamp duty or Imposto de Selo – it is calculated to be about 0.8% of the price of purchasing.
• Land and property registration fees and Notary fees - these figures usually vary according to the price of the property.
• Estate Agency Fees – these are intended to be around 5% and are taken account of as part of the sale price.

Therefore it is evident that the above factors must be borne in mind whenever one decides on investing on any piece of immovable property in Portugal.