IMT applies to the transfer, at cost, of property rights or partial rights applicable to property located in Portuguese territory.
Who pays IMT in Portugal?
IMT is paid when buying, selling or exchanging a property in Portugal. Generally speaking, IMT is owed by the purchaser of the real estate property; however, there are specific rules for certain situations.
The amount of IMT payable is calculated by applying a rate to the value stated in the act or contract or to the taxable value of the property, whichever is greater.
What are the IMT rates in Portugal?
IMT rates in Portugal vary according to several factors, such as the property's asset value and the type of property (rustic, urban or mixed):
a) Urban building or independent unit used exclusively for own and permanent residence:
| Amount (€) | Marginal rate (%) | Average rate (%)* |
| Up to 92 407 | 0 | 0 |
| From 92 407 to 126 403 | 2 | 0,5379 |
| From 126 403 to 172 348 | 5 | 1,7274 |
| From 172 348 to 287 213 | 7 | 3,8361 |
| From 287 213 to 574 323 | 8 | - |
| From 574 323 to 1 000 000 | 6 (single rate) |
| Greater than 1 000 000 | 7,5 (single rate) |
(*) Upper limit of the bracket
b) Acquisition of urban building or independent unit of an urban building exclusively used for housing, not covered by the above sub-paragraph:
| Amount (€) | Marginal rate (%) | Average rate (%)* |
| Up to 92 407 | 1 | 1 |
| From 92 407 to 126 403 | 2 | 1,2689 |
| From 126 403 to 172 348 | 5 | 2,2636 |
| From 172 348 to 287 213 | 7 | 4,1578 |
| From 287 213 to 550 836 | 8 | - |
| From 500 836 to 1 000 000 | 6 (single rate) |
| Greater than 1 000 000 | 7,5 (single rate) |
(*) Upper limit of the bracket
When, in relation to the acquisitions referred to in sub-paragraphs a) and b) above, the amount subject to tax is greater than €92,407, it is divided into two parts: one of them being equal to the limit of the higher of the brackets it falls under, subject to the average rate of this bracket; and the other part equal to the remainder, which shall be subject to the marginal rate of the bracket that is immediately higher.
c) Acquisition of rural real estate - 5% (general regime) or 1% (IBCM);
d) Acquisition of other urban real estate and other acquisitions at a cost - 6.5% (general regime) or 1.3% (IBCM);
e) Acquisition by an entity residing in a tax haven - 10%.
Companies established within the scope of the International Business Centre of Madeira as of 2015 shall be subject to a limitation of 80% with respect to the IMT on property intended as their business premises.
