IMT in Portugal: Property Transfer Tax Explained, with Calculator

What changed in 2026: the 7.5 % rate for non-residents

As part of the government’s housing package, non-residents buying residential property pay a flat IMT rate of 7.5 % instead of the progressive tables. For a €250,000 apartment, that means about €18,750 instead of about €8,100 under the normal rates for a second home.

The flat rate does not apply, or the difference is refunded, if:

• you become tax resident in Portugal within two years of the purchase, or
• you let the property on a residential lease at a moderate rent, starting within six months, for at least 36 months in the first five years.

A holiday rental (Alojamento Local) does not count as a residential lease for this purpose. Residents are not affected and continue to pay the progressive rates below.

In practice, non-resident buyers who plan to move to Portugal, for example on a D7 visa, or to let the property long-term should plan the timing carefully, because the refund depends on meeting the conditions. Ask your lawyer how the exception is declared and documented. Read more in our article on the IMT changes for non-residents.

How IMT is calculated

For residential property, IMT works like income tax brackets, but with a simplification: you apply the rate of the bracket your property falls into to the whole value, then subtract a fixed deduction (parcela a abater). The tax base is the higher of the purchase price and the tax value (VPT) shown in the Caderneta Predial.

Example: €250,000 apartment on the mainland

IMT tables 2026

The brackets were updated by 2 % with the 2026 State Budget. The 2027 budget will update them again from January.

Main home (habitação própria e permanente), mainland

Second home or rental (habitação), mainland

IMT Jovem (35 and under, first main home), mainland

Azores and Madeira:

the brackets are about 25 % higher. Main homes are exempt up to €132,933 and IMT Jovem applies in full up to €413,174.

Flat rates for other property:

IMT Jovem: exemption for buyers aged 35 and under

Since August 2024, young buyers are exempt from IMT and stamp duty on their first home, regardless of nationality. In 2026:

• Full exemption up to €330,539, partial exemption up to €660,982 (mainland).
• The buyer must be 35 or under, must not be a dependant for income tax purposes, and the property must be their first own permanent home, without having owned residential property in Portugal in the previous three years.
• Couples: if only one buyer qualifies, the exemption applies only to their share, so typically half.

The home must actually be used as a permanent residence; if the conditions are not met, the tax becomes payable. See our guide to Jovem 35.

IMT Jovem and the state mortgage guarantee: what ends in 2026? The IMT Jovem exemption is part of the IMT Code and has no end date or budget cap, so it continues in 2027. The separate state guarantee for young buyers’ mortgages, which lets banks lend up to 100 % of the price, is different: it applies only to loan contracts signed by 31 December 2026, and demand has been so high that the government had to increase the total amount available to about €2.3 billion in April 2026. An extension is legally possible but has not been confirmed. If you are 35 or under and need the guarantee, sign the loan contract in 2026 if you can.

When and how to pay

1. Your lawyer or notary submits the IMT declaration and issues the payment document (DUC) through the tax portal, shortly before the deed.
2. Pay the DUC by transfer from a Portuguese bank account, through online banking, at a Multibanco ATM or at a tax office. Card limits are usually too low for amounts of this size.
3. Bring proof of payment to the deed. If the purchase does not go ahead, you can request a refund.

Practical tips for paying IMT on time:

• The payment window is short. In practice, the payment document has to be paid within about 24 to 36 hours of being issued, otherwise it lapses and a new one must be requested. Plan the payment as a fixed appointment, not as something to do “at some point before the deed”.
• Book the deed mid-week. If you want to pay at a tax office or bank counter, a deed on a Wednesday or Thursday is ideal: the document can be issued and paid on Monday or Tuesday during office hours. A deed on Monday means issuing and paying the document on the Friday before, with the weekend in between and no room for delays.
• Watch out for public holidays. Avoid deeds right after a national or local holiday, such as 5 October, 1 November or 8 December, or a municipal holiday, because offices are closed and the window shrinks.
• Have the money in Portugal in advance. An international transfer usually takes longer than the payment window. Transfer the funds to your Portuguese account a few days before, and check or raise your online banking transfer limit.
• Keep the proof of payment. Save the payment receipt as a PDF and send it to your lawyer or notary straight away; you will need it at the deed and later, when you sell, to deduct IMT from capital gains.

You need a Portuguese tax number (NIF), the CPCV if there is one, the Caderneta Predial and the Certidão Permanente.

Exemptions and special cases

Urban rehabilitation: buildings in an Urban Rehabilitation Area (ARU) that are renovated under the applicable rules can be exempt from IMT, provided the works are completed within the deadline, usually three years, and the property is then used as a permanent home, by the owner or a tenant. Check the conditions with the municipality before buying.

Property exchange (permuta): in an exchange, IMT is generally due only on the difference in value. Since 2023 this advantage is lost if the property is sold again within a year.

Capital gains: IMT and stamp duty paid on purchase can be deducted when you later calculate capital gains tax on a sale. Keep the payment documents; if they are lost, the tax office can issue a certificate of the amounts paid.

IMT, stamp duty and IMI

• IMT: paid once, on purchase.
• Stamp duty (Imposto do Selo): 0.8 % on the same base, paid with the IMT; plus 0.6 % on the amount of a mortgage of five years or more.
• IMI: the annual municipal property tax, 0.3 to 0.45 % of the VPT for urban property, paid in May, or in two or three instalments up to November for larger amounts.

How we can help

As your buyer’s agent, we include IMT in your budget from the first viewing, check whether the non-resident exceptions or IMT Jovem apply, and coordinate payment with your lawyer. Book a free consultation.