Portugal's municipal property transfer tax — the main buyer's tax on property purchases, ranging from 0% to 8% depending on purchase price and property type.
IMT — Imposto Municipal sobre as Transmissões Onerosas de Imóveis — is Portugal's main property transfer tax, paid by the buyer before completion. It replaced the old SISA tax in 2004 and applies to most residential property purchases. IMT is calculated on a sliding scale based on the purchase price (or the Valor Patrimonial Tributário — VPT, the tax authority's assessed value — whichever is higher).
The IMT scale for urban residential properties (habitation) ranges from 0% on purchases up to €97,064 (as of 2026 rates; this threshold is updated annually) to a maximum marginal rate of 8% on the portion above €1,055,928. The actual effective rate on a typical residential purchase tends to be between 2% and 6% for properties in the €200,000–€800,000 range. Rural properties (prédios rústicos) and commercial properties have different rates.
Primary residence purchases benefit from reduced or zero IMT rates — if you are buying a property in Portugal to use as your permanent home (habitação própria e permanente) rather than as a second home or investment, lower rates apply across the entire scale. Your lawyer must confirm the intended use with the tax authority at the time of payment. You will be required to maintain the property as your permanent residence for at least six years or face a clawback of the IMT benefit.
IMT must be paid before the escritura (notarial deed) is signed. Payment is made at a Finanças office or online through the AT portal using the Documento de Cobrança issued by the notário. The notário will request proof of payment before proceeding with the deed. You cannot complete a property purchase in Portugal without paying IMT first.
In addition to IMT, buyers must pay Imposto do Selo (Stamp Duty) at a flat rate of 0.8% of the purchase price on residential property purchases. IMT and Imposto do Selo together represent the main tax costs in a Portuguese property transaction, alongside the notário fees and Land Registry (Conservatória do Registo Predial) registration fees.
They serve the same function — both are buyer-side property transfer taxes — but they are different taxes with different rate structures. Spain's ITP is a flat percentage (varying by region, 6–13%). Portugal's IMT uses a sliding scale with different rates for primary residence, second homes, and commercial property.
New build properties in Portugal typically attract VAT (IVA) at 23% on the construction cost component rather than IMT on the full price. However, the land component and certain transactions may still attract IMT. The tax treatment of new builds in Portugal is complex — always seek specific advice from a Portuguese tax lawyer.
Yes. Non-residents who are purchasing a property to use as their primary Portuguese residence are entitled to the primary residence IMT rate, provided they genuinely intend to use it as such for at least six years. Non-EU nationals must have the appropriate visa or permit allowing permanent residence.
→ Read our full guide: Real Estate Law Guide Expats Portugal
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