IMT is the property transfer tax paid by the buyer in Portugal. The tax is calculated on the higher of the purchase price or the tax value of the property (VPT), at a sliding scale of 0%–7.5% for primary residence, 1%–7.5% for secondary/holiday homes, and a flat 5% (urban) or 5% (rural) for non-residential properties. Payment is due before the escritura. Higher rates apply for purchases by entities in tax-haven jurisdictions.
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What is IMT?
IMT — Imposto Municipal sobre Transmissões Onerosas de Imóveis — is the property transfer tax levied by the Portuguese state on every onerous transfer of property (purchases, exchanges, and some other transfers). It is paid by the buyer. The tax is calculated on the higher of the declared purchase price or the property's tax value (valor patrimonial tributário, VPT), and must be paid before the escritura.
IMT is the largest single transaction tax on a Portuguese property purchase. For a EUR 500,000 primary-residence property, IMT alone is typically EUR 23,000–25,000.
Current IMT rates for 2026
Portugal updates IMT bands annually. The 2026 bands below are indicative — your lawyer will confirm the exact bands applicable at the date of your escritura.
Primary residence (urban property, own permanent home)
| Property value (EUR) | Marginal rate | Deductible amount (EUR) |
|---|---|---|
| Up to ~104,000 | 0% | 0 |
| ~104,000 – ~142,000 | 2% | ~2,080 |
| ~142,000 – ~194,000 | 5% | ~6,335 |
| ~194,000 – ~324,000 | 7% | ~10,210 |
| ~324,000 – ~647,000 | 8% | ~13,447 |
| ~647,000 – ~1,128,000 | 6% flat | — |
| Above ~1,128,000 | 7.5% flat | — |
Secondary residence / holiday home / non-primary urban
| Property value (EUR) | Marginal rate |
|---|---|
| Up to ~104,000 | 1% |
| ~104,000 – ~142,000 | 2% |
| ~142,000 – ~194,000 | 5% |
| ~194,000 – ~324,000 | 7% |
| ~324,000 – ~621,000 | 8% |
| ~621,000 – ~1,128,000 | 6% flat |
| Above ~1,128,000 | 7.5% flat |
Rural property
Rural properties (prédios rústicos) attract a flat 5% IMT.
Non-residential urban properties (commercial, retail, industrial)
Non-residential urban properties attract a flat 6.5% IMT.
Properties acquired by tax-haven entities
Properties acquired by entities resident in jurisdictions on the Portuguese tax-haven list face a punitive 10% IMT.
Get a lawyer's IMT calculation for a specific property.
Request ConsultationHow IMT is calculated in Portugal
IMT is calculated on the higher of:
- The declared purchase price in the CPCV / escritura.
- The property's VPT (valor patrimonial tributário) — the tax value held by Finanças.
The marginal rate is applied to the relevant band, then the deductible amount is subtracted from the result (in the progressive bands).
Formula (progressive bands)
IMT = (Property value × marginal rate) − deductible amount
Formula (flat bands)
IMT = Property value × flat rate
Worked IMT examples
Example 1: EUR 300,000 apartment, primary residence
Falls in the ~194,000 – ~324,000 band at 7% marginal rate with deductible ~EUR 10,210.
IMT ≈ (300,000 × 7%) − 10,210 = EUR 10,790
Example 2: EUR 500,000 villa, secondary residence in Algarve
Falls in the ~324,000 – ~621,000 band (secondary) at 8% with appropriate deductible.
IMT ≈ approximately EUR 24,000 – 25,000
Example 3: EUR 900,000 apartment, primary residence in Lisbon
Falls in the ~647,000 – ~1,128,000 band (primary) at 6% flat.
IMT = 900,000 × 6% = EUR 54,000
Example 4: EUR 1,500,000 villa, secondary residence
Falls above ~1,128,000 at 7.5% flat.
IMT = 1,500,000 × 7.5% = EUR 112,500
When and how to pay IMT
- Before the escritura. IMT is paid before the deed is signed. The notary will not execute the escritura without confirmation that IMT and stamp duty have been settled.
- By payment guide. Finanças issues a payment guide (guia de pagamento) calculated for the specific transaction. The buyer pays at any bank or via online banking.
- Calculation by the lawyer or notary. Typically the lawyer calculates IMT and obtains the payment guide. Confirm the calculation matches the band table — errors are not uncommon.
- Receipt to the notary. The payment receipt is presented at the escritura.
IMT exemptions and reductions
- Primary residence below the threshold — properties up to approximately EUR 104,000 are exempt from IMT for primary residence buyers.
- Young buyers (under 35) — recent reform introduces an IMT and stamp duty exemption for first-home buyers under 35 on properties up to a threshold. Verify the current threshold and eligibility conditions with your lawyer.
- Urban regeneration zones (ARU) — properties in designated urban rehabilitation areas may qualify for IMT reductions or exemptions, conditional on rehabilitation works.
- Real estate funds and certain corporate structures — specific regimes apply that are outside the scope of this guide.
Exemption eligibility is fact-specific and the rules have been amended several times in recent years. Confirm with a Portuguese tax-aware property lawyer.
Confirm your exact IMT liability before you sign.
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