Property taxes when buying real estate in Portugal
IMT TAX 2026
When buying real estate in Portugal, there are purchase taxes to be paid. You have the IMT tax and stamp duty as general costs.
IMT tax is calculated based on the purchase price of the property. Furthermore, there are 2 different tax tables. The first one for properties bought for ‘permanent’ living in Portugal and the second table which applies to buying a 2nd home such as a holiday property.
For properties, as a second home/holiday property between euro 660.982 upto euro 1.150.853 the flat fee is 6%.
Above euro 1.150.853 the IMT is 7,5%.
IMT 2026 – Main Private Residence (Habitação Própria e Permanente)
| Property Value (€) | IMT Rate | Deduction (€) |
|---|---|---|
| Up to €106,346 | 0% | €0 |
| €106,346 – €145,470 | 2% | €2,085.22 |
| €145,470 – €198,347 | 5% | €6,363.76 |
| €198,347 – €330,539 | 7% | €10,252.92 |
| €330,539 – €660,982 | 8% | €13,493.50 |
| €660,982 – €1,150,853 | 6% (flat rate) | – |
| Over €1,150,853 | 7.5% (flat rate) | – |
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IMT 2026 – Secondary Residence or Other Urban Property
| Property Value (€) | IMT Rate | Deduction (€) |
|---|---|---|
| Up to €106,346 | 1% | €0 |
| €106,346 – €145,470 | 2% | €1,042.61 |
| €145,470 – €198,347 | 5% | €5,321.15 |
| €198,347 – €330,539 | 7% | €9,210.31 |
| €330,539 – €633,931 | 8% | €12,450.89 |
| €633,931 – €1,150,853 | 6% (flat rate) | – |
| Over €1,150,853 | 7.5% (flat rate) | – |
Other applicable values not listed in the chart above:
- Rustic and agricultural plots – 5%
- Other property and urban plots – 6,5%
STAMP DUTY
The stamp duty is calculated in relation to the sales price and paid before completion, when the IMT (transfer tax) is due. The rates are:
- Property: single rate of 0,8% on the declared value.
- Mortgage: Single rate of 0,6% on the value of the mortgage.
OTHER COSTS
Lawyers
Depending on the property purchase price generally lawyers will work on fees ranging from 0.5% to roughly about 1%. Some lawyers might agree on a fixed fee but generally the work is calculated in a percentage based on the purchase price.
Notary fees, property registration, various documents.
| As a rule of thumb calculate around euro 1500-3000,- for the various documents as well the deeds done by an official registered notary office. Costs of course depending on property purchase price |
How Is IMT Calculated?
IMT is calculated using a progressive rate system. The tax is applied to the higher of the purchase price or the tax registration value (VPT).
Example:
Buying a €450,000 property as a primary residence:
IMT = (€450,000 × 8%) − €13,493.50 = €22,506.50
Total Property Purchase Costs in Portugal
| Cost | Typical Amount |
|---|---|
| IMT | Variable (0–8%) |
| Stamp Duty | 0.8% |
| Legal Fees | 1–1.5% |
| Notary & Registration | €1,000 – €2,000 |
| Total | Approx. 7–10% |
Frequently Asked Questions
Do foreign buyers pay higher IMT?
No. Foreign buyers pay exactly the same IMT rates as Portuguese residents.
When is IMT paid?
IMT must be paid before the deed is signed, usually on the day of completion.
Is IMT refundable?
No, IMT is not refundable once the property transfer is completed.
Is IMT calculated on the purchase price?
IMT is calculated on the higher of the purchase price or the tax value (VPT).
Do companies pay different IMT?
Companies may be subject to different IMT rates depending on their activity.
Is IMT payable on off-plan properties?
Yes. IMT is payable at the time of the final deed, regardless of construction stage.