Buying Real Estate in Portugal: Notary fees, property tax (+ luxury tax), IMT, imposto de selo, AIMI... everything you’ll need to pay when purchasing a property.

Buying Real Estate in Portugal: Notary fees, property tax (+ luxury tax), IMT, imposto de selo, AIMI... everything else you’ll need to pay when purchasing a property.

Buying Real Estate in Portugal: Notary fees, property tax (+ luxury tax), IMT, imposto de selo, AIMI... everything you’ll need to pay when purchasing a property.

In 2026, the IMT (transfer tax) and Imposto de Selo (stamp duty) in Portugal are structured around an exemption for individuals under 35 years of age (up to €330,539), a standard progressive tax scale for residents, and a flat rate of 7.5% for non-residents.

IMT (Primary Residence - Residents): Progressive tax scale ranging from 0% to 7.5%; full exemption for properties valued at up to €106,346.

IMT (Non-residents): Flat rate of 7.5% applied to urban residential properties, with no deduction (refundable if you become a tax resident within 2 years).

Imposto de Selo (Purchase): Fixed rate of 0.8% on the purchase price or the taxable property value (whichever is higher).

Imposto de Selo (Loan): Rate of 0.6% on the loan amount for loans with a term of more than 5 years.

Full Exemption: Combined exemption from IMT and Imposto de Selo for the purchase of a first primary residence if the property’s price does not exceed €330,539.

Higher bracket: For a property costing between €330,539 and €633,453, a formula is used to calculate the partial tax relief.

In 2026, there will be an automatic increase in the Taxable Property Value (TPV) of 4.5% for residential properties and 6% for commercial properties.

Calculation: IMI = VPT × Municipal Tax Rate

2026 Rates: Between 0.3% and 0.45% for urban properties
Examples: Lisbon (0.3%), Porto (0.324%), Cascais (0.35%), Faro (0.3%)
Family IMI: Discount for families with children (if the municipality offers it): -€30 (1 child), -€70 (2 children), -€140 (3 or more children)

Exemptions for 2026:

• Permanent: For households with an annual gross income < €17,295.59 + property with a VPT ≤ €67,260.20
• Temporary (3 years): purchase of a primary residence with an annual income < €153,300 + VPT ≤ €125,000

In 2026, there will be an automatic increase in the Taxable Property Value (TPV) of 4.5% for residential properties and 6% for commercial properties.

Calculation: IMI = VPT × Municipal Tax Rate

2026 Rates: Between 0.3% and 0.45% for urban properties
Examples: Lisbon (0.3%), Porto (0.324%), Cascais (0.35%), Faro (0.3%)
Family IMI: Discount for families with children (if the municipality offers it): -€30 (1 child), -€70 (2 children), -€140 (3 or more children)

Exemptions for 2026:

• Permanent: For households with an annual gross income < €17,295.59 and a property with a VPT ≤ €67,260.20
• Temporary (3 years): For the purchase of a primary residence with an annual income < €153,300 and a VPT ≤ €125,000

In 2026, there will be an automatic increase in the Taxable Property Value (TPV) of 4.5% for residential properties and 6% for commercial properties.

Calculation: IMI = VPT × Municipal Tax Rate

2026 Rates: Between 0.3% and 0.45% for urban properties
Examples: Lisbon (0.3%), Porto (0.324%), Cascais (0.35%), Faro (0.3%)

Family IMI: Discount for families with children (if the municipality offers it): -€30 (1 child), -€70 (2 children), -€140 (3 or more children)

Exemptions for 2026:

• Permanent: For households with an annual gross income < €17,295.59 and a property with a VPT ≤ €67,260.20
• Temporary (3 years): For the purchase of a primary residence with an annual income < €153,300 and a VPT ≤ €125,000

In 2026, there will be an automatic increase in the Taxable Property Value (TPV) of 4.5% for residential properties and 6% for commercial properties.

Calculation: IMI = VPT × Municipal Tax Rate

2026 Rates: Between 0.3% and 0.45% for urban properties
Examples: Lisbon (0.3%), Porto (0.324%), Cascais (0.35%), Faro (0.3%)
Family IMI: Discount for families with children (if the municipality offers it): -€30 (1 child), -€70 (2 children), -€140 (3 or more children)

Exemptions for 2026:

• Permanent: For households with an annual gross income < €17,295.59 and a property with a VPT ≤ €67,260.20
• Temporary (3 years): For the purchase of a primary residence with an annual income < €153,300 and a VPT ≤ €125,000

This tax is in addition to the IMI for high-value residential real estate holdings as of January 1 (thresholds unchanged in 2026).

Exemption:

• €600,000 for a single person
• €1,200,000 for a married or common-law couple (opting for joint taxation)

Tax rates for individuals (on the value exceeding the exemption):

• 0.7% up to €1,000,000
• 1% between €1,000,001 and €2,000,000
• 1.5% above €2,000,000

Special cases:

• Corporations: 0.4% rate starting from the first euro (no exemption)
• Tax havens: 7.5% rate