Updated IMT brackets, a slowly rising Euribor, the early repayment fee back in force and a public guarantee with a deadline. A map of the year for anyone about to buy.
Taxes: brackets 2% higher
The IMT (property transfer tax) brackets were updated by 2% for 2026. A permanent main residence up to €106,346 pays no IMT. Above that, rates run from 2% to 8% by bracket, with a flat 6% above €660,982 and 7.5% above €1,150,853.
For buyers aged 35 or under, the full exemption goes up to €330,539 and the partial exemption up to €660,982, and it also covers the stamp duty on the purchase.
Rates: the Euribor is rising again
The 12-month Euribor closed August 2026 at 2.954%, its highest since 2024. With a 1.25% spread, the nominal rate on a variable-rate mortgage sits around 4.2%. It is not the 2022 scenario, but it is not 2025 either, when the cuts eased instalments.
What this means for you: in your calculations, always test the instalment with one extra point of Euribor. If the sums still work, go ahead with more peace of mind.
The early repayment fee is back
Between 2022 and the end of 2025, anyone with a variable-rate mortgage could repay early without a fee. That exemption ended on 31 December 2025. In 2026 the maximum fee is 0.5% of the capital repaid on a variable rate and 2% on a fixed rate.
It is no reason to stop overpaying. On a €10,000 overpayment at a variable rate, the fee is €50. It is, however, a reason to do the sums before transferring your mortgage to another bank.
Terms and the 90% rule
Banco de Portugal recommends that the loan should not exceed 90% of the property valuation, that the instalment should not exceed half of net income and that the term should respect your age: up to 40 years for those aged 30 or under, up to 37 years between 30 and 35, and up to 35 years above that.
A longer term lowers the instalment and raises total interest. At €200,000 and 4.2%, going from 30 to 40 years saves about €117 a month and costs more than €61,000 in extra interest overall.
An example for the year
- Deposit (10%): €25,000
- IMT (main residence, mainland): €7,042
- Stamp duty on the purchase (0.8%): €2,000
- Stamp duty on the loan (0.6% of €225,000): €1,350
- Deed, registrations and valuation: about €1,300
- Total to have set aside: about €36,700
If the couple are 35 or under and it is their first home, the IMT and the purchase stamp duty disappear and the figure drops to about €27,650. With the public guarantee, the deposit can disappear too.
Checklist before making an offer
- Pre-approval from the bank (or several, through an intermediary) so you know your real ceiling.
- A calculation at the current Euribor and at one point higher.
- Purchase costs added up, not just the deposit. Use the purchase costs calculator.
- Check whether you qualify for the young-buyer IMT exemption and the public guarantee, if they apply.
- Life and home insurance: ask for the monthly cost, it goes into the APRC.
- Property tax record (caderneta predial) and licence of use before paying a reservation deposit.
Frequently asked questions
Is it worth waiting for the Euribor to fall?
Nobody knows what the Euribor will do in the coming months. If the instalment fits your budget with room to spare, the right moment is when you find the right home. You can always renegotiate or transfer later.
How long does a mortgage take?
From the accepted offer to the deed, count normally on four to eight weeks, depending on the valuation, the paperwork and the bank.
Do I need an account at the bank giving me the mortgage?
In most cases the bank asks for salary domiciliation and a current account. Some associated products lower the spread, but they count towards the APRC. Always compare the total cost.