Portugal Property Tax (IMT) Calculator 2024

Property tax in Portugal is probably not your favorite topic to research. However, understanding additional Portugal property purchase costs is one of the most important aspects of buying a property.

This includes a variety of factors like the applicable income tax, potential capital gains, and relevant tax rates for both residents and non-residents.

One of the most important things that you will need to consider during the process is the property purchase tax (IMT). The IMT, or Imposto Municipal sobre a Transmissão Onerosa de Imóveis, is a property transfer tax in Portugal that buyers are required to pay when purchasing a property. This tax must be settled before the ownership transfer takes place.

With our Portugal property tax calculator, we have made calculating the property purchase tax as easy as possible for you. Our Portugal property transfer tax calculator is ready to calculate the amount you will need to pay on your property. 

In Portugal, you will pay the same taxes as Portuguese citizens. However, the crucial factor determining the applicable property tax rates is how you use the property you purchase. If the property is your permanent residence, you will pay less tax than if you are using it as a secondary or holiday home. Understanding this distinction is essential for grasping the property tax rates that apply to you.

If you are a non-resident or have income derived from rental properties, you may need to consider additional tax implications.

What is IMT tax in Portugal?

The Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) is a tax applied to the purchase of real estate in Portugal. This tax, also known as the property transfer tax, ranges from 0 percent to 10 percent. The rate between 0 percent and 8 percent depends on factors such as the property price, property location, type, and intended use (whether it is for permanent residence or secondary housing).

A fixed tax rate of 10 percent applies if the buyer is associated with jurisdictions that benefit from more favorable tax regimes, known as blacklisted jurisdictions.

In addition to the IMT, there are also tax credits and deductions that you may be eligible for based on your social security contributions, marital status, and whether you are filing as part of joint taxation with a spouse.

Note that the IMT in Portugal needs to be paid before completing the purchase. The IMT is calculated based on the property’s purchase price.

The following criteria are essential to calculating the Portugal property purchase tax(IMT):

• Type of property: Primary Residence, Secondary Residence or Rental, Rustic Buildings, Other Urban Buildings and other onerous transactions
• Property Location: Mainland Portugal or its autonomous regions (Azores and Madeira)
• Blacklisted jurisdictions: Whether the buyer has connections with territories benefiting from favorable tax schemes

An exemption for IMT tax can be requested if the buyer plans to use the property as their sole and permanent residence in Portugal, provided the property is located in a rehabilitation area. The rehabilitation work must be completed within a specified deadline.

The IMT real estate rate can be determined using the following sum: 

IMT Tax= Property Value x Tax Rate x Tax Deductions

Note: For more information on the IMT tax, including specific IMT circumstances and tax rates and a full list of IMT exemptions, please refer to our guide, Property Taxes in Portugal 2024: An Overview. Here, we also delve into the other taxes that you will need to be aware of, both at the time of the sale and on an annual basis.

Stamp Duty

Stamp Tax or Imposto do Selo, is an additional transaction tax that needs to be paid – and is an important tax to consider during the process of purchasing a property in Portugal. Stamp Tax is said to be the oldest tax levied but the state and, as a rule of thumb, real estate transactions are subject to a stamp tax at a rate of 0.8 percent. This is required to be paid at the time of purchase.