Property Taxes in Portugal: IMT, IMI and Stamp Duty Explained

Buying a home in Portugal comes with three main taxes:

• IMT — a one-off transfer tax paid by the buyer before signing the deed;
• Stamp duty (Imposto do Selo) — a one-off 0.8% tax on the purchase (plus extra stamp duty if you take a mortgage);
• IMI — the annual municipal property tax you pay every year you own the property.

Wealthier owners may also pay AIMI, an additional annual tax on high-value residential property.

This guide explains each tax, shows the 2026 IMT brackets, and walks through a real-world example.

Key takeaways:

• IMT for a main home on the mainland is 0% up to €106,346 in 2026 and rises progressively up to 8%, then flat rates of 6% and 7.5% for higher values.
• IMT Jovem: buyers aged 35 or under buying their first permanent home pay no IMT and no stamp duty up to €330,539, with partial relief up to €660,982.
• Stamp duty on a purchase is 0.8% of the price.
• IMI is 0.3%–0.45% a year of the property's tax value (VPT) for urban property, set by each municipality.
• IMT and stamp duty are calculated on the higher of the purchase price or the VPT.

Overview: what you pay and when

IMT (property transfer tax)

IMT — Imposto Municipal sobre as Transmissões Onerosas de Imóveis — is due whenever a property changes hands for payment. The buyer pays it, and proof of payment must be shown before the deed is signed.

The rate depends on three things:

1. Type of property — urban residential, other urban (e.g. commercial), or rustic land.
2. Use — your permanent own home (habitação própria e permanente, HPP) or any other residential use (second home, buy-to-let).
3. Location — mainland Portugal or the autonomous regions (Madeira and the Azores), where brackets are about 25% higher.

Fixed rates apply in some cases:

• Rustic land: 5%
• Other urban property (commercial, etc.): 6.5%
• Buyers resident in a blacklisted tax haven: 10%

IMT is calculated on the higher of the declared price and the property's taxable value (VPT, valor patrimonial tributário).

IMT brackets for 2026

The government updated the IMT brackets by 2% for 2026. These are the rates for a permanent own home on the mainland:

How to calculate: IMT = value × marginal rate − amount to deduct. For the two top bands, the flat rate applies to the whole value.

Second homes and buy-to-let use a separate table: the first band is taxed at 1% (no 0% band), and the progressive brackets end lower (around €633,931 on the mainland in 2026), after which the same 6% and 7.5% flat rates apply.

In Madeira and the Azores, the brackets are higher — the 0% band for a permanent home goes up to €132,933.

The brackets are usually updated in each State Budget, so check the figures in force for the year you buy.

IMT Jovem: exemption for buyers 35 and under

Since August 2024, young buyers get a major break on their first home. In 2026:

• Full exemption from IMT and stamp duty on the purchase for homes up to €330,539 (mainland).
• Partial relief for homes up to €660,982 — you only pay on the portion above €330,539.
• In Madeira and the Azores, the full exemption goes up to about €413,174.

Main conditions (all must be met at the date of purchase):

• You are 35 or younger;
• It is your first purchase of a home to use as your permanent own residence;
• You haven't owned residential property before (rules apply to past ownership);
• You are not claimed as a dependant on someone else's IRS return.

You must move in and register it as your permanent address within six months, or you lose the exemption. When buying as a couple, the exemption applies per buyer, so a buyer over 35 pays on their share.

Stamp duty (Imposto do Selo)

• On the purchase: 0.8% of the price (or VPT, if higher). Paid together with IMT.
• On a mortgage:
  • 0.6% of the loan amount for loans of 5 years or more;
  • 0.5% for loans of 1–5 years;
  • plus 4% stamp duty on interest and bank fees over the life of the loan.

Buyers who qualify for IMT Jovem are also exempt from stamp duty on the purchase within the same limits (stamp duty on the mortgage still applies).

Worked example: buying a €250,000 home

Maria, 42, buys an apartment in Porto for €250,000 as her permanent home, financed with a €200,000 30-year mortgage.

If Maria were 33 and qualified for IMT Jovem, she would pay €0 IMT and €0 purchase stamp duty — saving over €9,000. Only the €1,200 mortgage stamp duty would remain.

If the same flat were a second home, IMT would be higher because the second-home table has no 0% band.

IMI (annual property tax)

IMI — Imposto Municipal sobre Imóveis — is paid every year by whoever owns the property on 31 December. The bill arrives the following spring.

Rates:

Municipalities can also increase IMI on vacant or derelict buildings.

Example: a flat with a VPT of €120,000 in a municipality charging 0.3% pays €360 a year.

Payment schedule:

Your VPT is usually well below market value. You can find it on your caderneta predial (property registration document) on the Portal das Finanças. If you think it's too high, you can request a reassessment — but note it can go up as well as down.

IMI exemptions and discounts

• Temporary exemption for your permanent home: if the VPT is up to €125,000 and your household's taxable income is below the legal limit (around €153,300), you can be exempt from IMI for 3 years. You must request it within 60 days of the purchase if it isn't granted automatically.
• Permanent exemption for low-income households with modest property values.
• IMI Familiar: many municipalities give a fixed discount for households with dependants (€30 for one, €70 for two, €140 for three or more).
• Rehabilitated buildings and certain energy-efficiency improvements can qualify for municipal relief.

AIMI (additional property tax)

AIMI — Adicional ao IMI — applies to owners of high-value residential property and building land:

Married couples or civil partners can opt for joint taxation, doubling the allowance to €1.2 million. Companies generally pay 0.4% without an allowance. AIMI is billed in June and paid in September.

Other buying costs

Taxes aren't the only cost. Budget roughly 1%–2% extra for:

• notary or Casa Pronta deed fees and land registry;
• lawyer fees (commonly around 1% of the price);
• bank fees: valuation, processing, mortgage registration;
• mandatory life and home insurance on a mortgage.

Practical tips

• Use the official simulator on the Portal das Finanças before you sign the promissory contract (CPCV).
• Check the caderneta predial and land registry certificate (certidão permanente) for the property's VPT, use and any debts.
• Plan for IMI from day one — you'll pay it every year.
• Moving to Portugal? Make sure you understand your tax residency status — it affects which deductions and benefits you can claim.

Figures are for 2026 and current as of November 2026. Tax brackets are updated in each State Budget — check the current tables before you buy.