IMT

(municipal tax on the real estate transfer)

 

These rates apply to the highest value of real estate, be the property tax value or the agreed price:

  • The rate is 6% for apartments and houses for habitation;

 

  • 5% for construction land, commercial spaces and urban buildings;

 

  • 5% for farm land;

 

  • 10% for properties acquired by offshore entities.

 

 

In the event of execution of deed for less than the actual value, besides tax infraction, gives to the State (through local authorities or other public entities), the right to acquire the property for the value and conditions described in the deed.

 

IMT is paid before the celebration of the deed, obtaining a corresponding guide in Portal das Finanças, if you pay IMT and for some reason do not make the deal, you may obtain a refund of the amount paid within three years.

 

Tax Benefits

Groups of Secondary housing in mainland Portugal

 

Value for calculation of IMT Rate Plot to be cut
up until € 92,407 1
€ 92,407 to € 126,403 2 € 924,07
€ 126,403 to € 172,348 5 € 4.716,16
€ 172,348 to € 287,213 7 € 8.163,12
€ 287,213 to € 550,836 8 € 11.035,25
Higher than € 550,836 Rate of 6%

 

 

It also benefits from IMT exemption, the acquisition of properties classified as cultural  heritage, or public interest.

Other exemptions, Buildings for resale, classified buildings, individually, national, public or municipal interest, Buildings acquired by credit institutions in enforcement proceedings, bankruptcy/insolvency or in deed in fulfillment.

Tax Breaks to Urban Rehabilitation

Will be exempt from IMT the acquisitions of urban buildings for urban rehabilitation provided that, the acquirer starts the respective works, within two years from the date of acquisition – depends of the municipal regulation.

Will be exempt from IMT the acquisitions of urban buildings destined exclusively for own and permanent housing, in the first onerous transmission of rehabilitated buildings, when they are located in “urban rehabilitation area”.

 

However, in order to obtain these exemptions it is necessary to apply at the finance

department of the real estate the granting benefit before paying IMT and before

staying as owner of the property.

Stamp Tax

The acquisition of real estate is subject to stamp tax of 0.8%, that is, the tax worth* rate (0,8%), the same must be paid before the execution of the deed or donation contract.

IMI

(Municipal property tax)

The buildings are subject to the annual payment of the tax, which is due by the people who until December 31 of the year to which it respects. IMI is paid annually, the taxpayers receive a notice of the amount to be paid, as well as the time and place to do so.

The IMI rate for land outside urban areas and where construction is not allowed is 0.8%.

The rate for apartments, villas and building plots varies between 0.5% and 0.8%, the rate is fixed by resolution of the Municipal Assembly where the properties are located.

The rate for properties belonging to offshore entities is always 7.5%.

To the ruined buildings will be applied the doubling of the rate, remaining at 5%.

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