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Understanding Property Purchase Taxes in Portugal. buywithmarco.com

Updated: Nov 6, 2023

Understanding Property Purchase Taxes in Portugal

Certainly, in Portugal, when purchasing a property, there are several taxes and associated costs to consider. Here's an explanation of the main taxes involved in buying a property:

  • Stamp Duty (Imposto do Selo):

Stamp Duty is a tax applied to the transfer of real estate, including property purchases. The rate of Stamp Duty varies depending on the transaction value and the type of property. Rates can range from 0.4% to 0.8% of the transaction value. For example, if you are buying a house for 200,000 euros, the Stamp Duty rate might be 0.8%, resulting in a payment of 1,600 euros. buywithmarco.com

  • Municipal Property Transfer Tax (IMT - Imposto Municipal sobre Transmissões Onerosas de Imóveis):

IMT is a tax levied on the transfer of real estate properties. IMT rates also vary depending on the property value and purpose (primary residence, secondary residence, or investment). Rates are higher for investment properties. Exemptions and reductions are available for large families or when the property is intended for permanent residence. buywithmarco.com

  • Municipal Property Tax (IMI - Imposto Municipal sobre Imóveis):

IMI is an annual tax based on the taxable property value. The IMI rate varies between 0.3% and 0.45% of the taxable property value. High-value or unoccupied properties may be subject to an additional rate.


The first two taxes you pay in the day of the deed, the IMI you pay one time a year. buywithmarco.com

In addition to these taxes, you should also consider other costs associated with buying a property in Portugal, such as notary fees, registration fees.


Keep in mind that tax laws and regulations may change over time, and the exact amounts can vary based on the region of Portugal where you are purchasing the property. Therefore, it is advisable to consult with a tax professional or a lawyer specializing in real estate transactions to get up-to-date and personalized information based on your specific situation. buywithmarco.com

If you need a simple tax simulation please contact me.




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