Question 1

What is IMT?

Accepted Answer

IMT (Municipal Tax on Onerous Transfers of Real Estate) is a tax you pay when you buy a property in Portugal. It is charged on the transfer of ownership rights and its amount depends on the property price, the applicable rate, the location, and the purpose of the purchase.

Question 2

When does IMT apply?

Accepted Answer

IMT applies at the moment of the deed for the real estate transaction, that is, when the ownership of the property changes hands. That is when you must pay IMT and also the Stamp Duty on the purchase.

Question 3

On what amount is IMT charged?

Accepted Answer

IMT is charged on the higher of the acquisition value (the price on the deed) and the property’s Taxable Asset Value (VPT). The applicable rate is applied to that amount, the higher of the two.

Question 4

What is the VPT?

Accepted Answer

The VPT (Valor Patrimonial Tributário) is the tax value of a property assigned by the Tax Authority (Finanças), used as the basis to calculate taxes such as IMI and IMT. It usually differs from the market value and is calculated based on the property’s size, location, and age.
The VPT is used as a reference to charge two taxes: IMI (Municipal Property Tax), whose annual rate, paid to the local council, is applied to the VPT; and IMT, which at the time of purchase is calculated based on the higher of the deed price and the VPT.

Question 5

What are the IMT rates?

Accepted Answer

IMT rates range from 0% (lower-value primary residence) to 10% (buyers domiciled in a tax haven), depending on the property value, location (Mainland or Autonomous Regions), purpose of the purchase and type of property. The higher the property value, the higher the applicable rate. Since May 20, 2026, anyone who is not a tax resident in Portugal pays a flat rate of 7.5% on the purchase of a home, with no exemptions or reductions, unless they become a resident within the following two years or rent out the property with rent within the legal limits (IMT Code, article 17, paragraph 10).

Question 6

What is Stamp Duty?

Accepted Answer

In addition to IMT, when you buy a home you also pay Stamp Duty on the purchase. The State charges 0.8% on the property value. For example, on a home worth €200,000, the Stamp Duty amounts to €1,600.

Question 7

Is Stamp Duty always payable?

Accepted Answer

As a rule, yes. Stamp Duty of 0.8% is due on the purchase of any property. The exception is for young buyers eligible for the IMT Jovem benefit, who may be exempt from Stamp Duty (in full or in part) on the purchase of their first primary residence, within the applicable value limits.

Question 8

What is the deduction amount?

Accepted Answer

The deduction amount is a “discount” applied when calculating IMT.
Imagine you buy a home on the Mainland for €200,000. The applicable rate is 7%, which would correspond to €14,000. However, that bracket benefits from a deduction amount of €10,457.96, which reduces the IMT payable to €3,542.04.
The deduction amounts increase as the property value goes up and also vary according to the type of property. For a primary residence, the deduction is higher than for a second home.

Question 9

Is there always a deduction amount?

Accepted Answer

No. The last two value brackets do not have a deduction amount, which means higher-value properties do not benefit from this reduction in the final amount payable.

Question 10

Who can get an IMT exemption?

Accepted Answer

There are two main situations that can give rise to an IMT exemption: one related to the property value (lower-value properties intended as a primary residence) and another related to the buyer’s age (the IMT Jovem benefit, on the purchase of the first primary residence).

Question 11

How does the primary residence exemption work?

Accepted Answer

A property intended as a primary residence can be exempt from IMT if its value (deed price or VPT) does not exceed €106,346 on the Mainland, or €132,933 in the Autonomous Region of Madeira or the Azores. There is also the IMT Jovem exemption on the first purchase of a primary residence up to €330,539, for those who are up to 35 years old, are not considered dependents for IRS purposes, and have not owned a home in the previous three years (see the questions on IMT Jovem).

Question 12

What is the IMT Jovem exemption?

Accepted Answer

Since 2024, young people aged 35 or under can benefit from an exemption from IMT and Stamp Duty on the purchase of their first primary residence, provided they meet the requirements.
On the Mainland, full exemption covers properties whose transaction value is up to €330,539. Between €330,539 and €660,982 there is a partial exemption, with a discount on the IMT amount. Above €660,982 there is no longer any IMT benefit; for Stamp Duty, the deduction corresponding to the portion of the value up to €330,539 is maintained.
In the Autonomous Regions, the limits are higher: full exemption up to €413,174 and partial exemption between €413,174 and €826,228. Above this last amount there is no longer any IMT benefit; for Stamp Duty, the deduction on the portion up to €413,174 is maintained.
The exemption lapses if, within the following six years, the property ceases to be your primary residence (except for the situations provided for by law).

Question 13

What are the requirements for IMT Jovem?

Accepted Answer

To benefit from the IMT and Stamp Duty exemption, the buyer must not: be over 35 years old; be considered a dependent for IRS purposes; own a home or a share of a home; or have owned a home, or a share, in the previous three years. The property must be intended as the first primary residence.

Question 14

What if only one of the buyers is up to 35 years old?

Accepted Answer

When only one of the buyers is eligible for IMT Jovem, the exemption applies only to their share. If they are married and the home is joint marital property, each one is considered to own half; in other cases, each person’s share is what counts. The other share is taxed at the normal rates, and the same applies to Stamp Duty.

Question 15

What changes depending on the property’s purpose?

Accepted Answer

The property’s purpose affects the applicable rates and benefits. A primary residence has more favorable tables and is the only one that gives access to the IMT Jovem exemption. A second home has lower deduction amounts, resulting in higher IMT. Rural properties, urban properties, and purchases covered by tax haven regimes have their own rates and do not benefit from IMT Jovem.

Question 16

What changes between the Mainland and the Autonomous Regions?

Accepted Answer

The value brackets and exemption limits are different on the Mainland and in the Autonomous Regions (Madeira and the Azores. In the Autonomous Regions, the limits are higher. For example, the primary residence exemption applies up to €106,346 on the Mainland and up to €132,933 in the Autonomous Regions.

Question 17

When do I have to pay IMT?

Accepted Answer

IMT is assessed before the deed and must be paid on the day of assessment or within the following 30 days; if it is not paid within that period, the assessment becomes void. If the contract is signed abroad, payment is made during the following month. The Stamp Duty on the purchase is paid at the same time.

Question 18

Does this simulator give me the final amount to pay?

Accepted Answer

This simulator provides an estimate of the IMT and Stamp Duty payable, already taking into account the deduction amount and any applicable benefits, such as IMT Jovem. It is for information purposes only, based on the tables in force. The final amounts must always be confirmed by the Tax Authority (Finanças) and the notary.

Portugal IMT and Stamp Duty Simulator

Three questions to find out how much tax you’ll pay

How we calculate

IMT

IMT Jovem

Stamp Duty

Illustrative cases

Marta: the first house, with the IMT Jovem

Jorge and Paula: a vacation home in the Algarve

Myths

The next step

Support from a CrediSegur manager

Frequently asked questions