Buying a home in Portugal brings three different taxes. Two are paid once, at purchase: IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) and Imposto do Selo (stamp duty). The third, IMI (Imposto Municipal sobre Imóveis), is an annual tax for as long as you own the property. This guide sets out what the official texts say. It is a reading aid, not a tax calculation for your case.
IMT: the transfer tax
IMT is charged on the price paid for a property, or on its tax value (VPT) if that is higher. The rates are in article 17 of the IMT Code. For 2026 the bands were updated by the 2026 State Budget (Lei n.º 73-A/2025, de 30 de dezembro), and the tax authority (AT) published practical tables in Ofício Circulado n.º 40129/2026, dated 6 January 2026.
The practical tables work like this: multiply the taxable value by the marginal rate of your band, then subtract the "amount to deduct". In the top two bands a single flat rate applies to the whole value instead.
Mainland Portugal, own permanent home (habitação própria e permanente), 2026
| Taxable value (€) | Marginal rate | Amount to deduct (€) |
|---|---|---|
| Up to 106,346 | 0% | — |
| 106,346 – 145,470 | 2% | 2,126.92 |
| 145,470 – 198,347 | 5% | 6,491.02 |
| 198,347 – 330,539 | 7% | 10,457.96 |
| 330,539 – 660,982 | 8% | 13,763.35 |
| 660,982 – 1,150,853 | Flat 6% on the whole value | |
| Above 1,150,853 | Flat 7.5% on the whole value |
Mainland Portugal, other housing (for example a second home or a buy-to-let), 2026
| Taxable value (€) | Marginal rate | Amount to deduct (€) |
|---|---|---|
| Up to 106,346 | 1% | — |
| 106,346 – 145,470 | 2% | 1,063.46 |
| 145,470 – 198,347 | 5% | 5,427.56 |
| 198,347 – 330,539 | 7% | 9,394.50 |
| 330,539 – 633,931 | 8% | 12,699.89 |
| 633,931 – 1,150,853 | Flat 6% on the whole value | |
| Above 1,150,853 | Flat 7.5% on the whole value |
Other rates in article 17: rustic (rural) land is taxed at 5%; other urban property and other onerous acquisitions at 6.5%. If the buyer is resident in a jurisdiction on Portugal's list of tax regimes that are clearly more favourable (or is an entity controlled from one), the rate is 10% and no exemption or reduction applies.
There is a separate table for buyers aged 35 or under purchasing their own permanent home (article 17(1)(b), linked to article 9). In 2026 it charges 0% up to €330,539, with conditions. Check those conditions with AT before relying on it. The Azores and Madeira have their own tables (Tabelas IV to VI of the same Ofício), with higher thresholds.
When IMT is paid: as amended by Decreto-Lei n.º 97/2026, article 36 says IMT must be paid on the day it is assessed or within the following 30 days, or the assessment lapses. In practice the notary or Casa Pronta desk will ask for proof of payment before the deed is signed.
A worked example (arithmetic only)
Take a hypothetical €300,000 flat on the mainland bought by a Portuguese tax resident, not as their permanent home. Using the "other housing" table, IMT is €11,605.50. The same flat bought as the buyer's own permanent home: €10,542.04. Bought by a non-resident (see below): €22,500. These figures are the published formulas worked through, not a quote for any real property. Our IMT calculator uses the same tables.
Non-resident buyers: flat 7.5% since May 2026
Decreto-Lei n.º 97/2026 added n.os 10–12 to article 17. A buyer who is not tax-resident in Portugal and buys an urban property or flat used exclusively for housing pays a flat 7.5% IMT, with no exemption or reduction. The decree states no start date. Applying the general 5-day rule, the rule has applied since 2026-05-25 (our inference). It does not apply if the buyer was previously tax-resident in Portugal. If the buyer becomes resident within two years, or lets the home for housing within the rent limits for at least 36 months in the first five years, AT cancels the difference against the normal rates; you must apply within six months. For a married couple buying as common property, AT's Ofício Circulado 40131/2026 says the flat rate applies only if both spouses are non-resident and neither was ever resident. Have your lawyer confirm how this applies to you.
Imposto do Selo (stamp duty)
Item 1.1 of the General Stamp Duty Table taxes the onerous acquisition of property rights over real estate at 0.8% of the value. On the €300,000 example that is €2,400, payable on top of IMT.
A mortgage brings a second stamp duty charge. Item 17.1 taxes the use of credit by term: 0.04% per month for credit under one year, 0.5% for one year or more, and 0.6% for five years or more. Banks also charge stamp duty on interest and commissions under other items of the same table. Ask your bank for the full breakdown; it has to give you one.
IMI: the annual property tax
Under article 112 of the IMI Code, rustic property is taxed at 0.8% of its tax value (VPT), and urban property at between 0.3% and 0.45%. Each municipality sets its own rate within that range every year, and may set it by parish. Rates are tripled for urban buildings vacant for more than a year or in ruins. Owners resident in a listed preferential tax regime pay 7.5%.
IMI is charged on the VPT on the property's tax record (caderneta predial), not on the price you paid. Payment dates are in article 120: one instalment in May if the bill is €100 or less; May and November if it is over €100 and up to €500; May, August and November if it is over €500.
We have not listed each municipality's IMI rate here. To find the rate for a specific concelho, check the municipality's decision or the AT simulator on Portal das Finanças.
What this guide does not cover
- Exemptions and reductions (for example for young buyers, or for urban rehabilitation). Each has its own conditions.
- AIMI (the additional IMI on high-value holdings), capital gains on sale, and taxes on rental income.
- Notary, land registry and lawyer fees, which are not taxes.
Frequently asked questions
Do non-residents pay more IMT?
Usually, yes. Since DL 97/2026, a buyer who is not tax-resident in Portugal and buys an urban property or flat used exclusively for housing pays a flat 7.5% IMT, with no exemption or reduction, unless one of the exceptions in CIMT art. 17.º n.º 10 applies (for example, having been resident before, or becoming resident within two years).
Source: Decreto-Lei n.º 97/2026, de 20 de maio, art. 6.º (CIMT art. 17.º n.os 10–12) — Portal das Finanças; AT, Ofício Circulado n.º 40131/2026 (2026-09-04): non-resident IMT rate
Is IMT charged on the price I pay or on the tax value?
IMT is charged on the higher of the value in the deed and the property's VPT (valor patrimonial tributário), under CIMT art. 12.º n.º 1. Stamp duty item 1.1 (0.8%) applies to the same value.
Source: Código do IMT, artigo 12.º (Valor tributável) — Portal das Finanças; Tabela Geral do Imposto do Selo — Portal das Finanças
When do I have to pay IMT?
On the day it is assessed or within the following 30 days, or the assessment lapses (CIMT art. 36.º n.º 1, as amended by DL 97/2026). In practice, proof of payment is shown before the deed.
Source: Código do IMT, artigo 36.º (Prazos para pagamento) — Portal das Finanças
How much is IMI every year?
For urban property, 0.3%–0.45% of the VPT, at the rate your municipality sets each year (0.8% for rustic land). It is billed in May, or in two or three instalments if it is over €100 or €500.
Source: Código do IMI, artigo 112.º (Taxas) — Portal das Finanças; Código do IMI, artigo 120.º (Prazo de pagamento) — Portal das Finanças; Portal das Finanças — Consultar Taxas IMI/CA por Município e Ano
Related reading
Sources
- Código do IMT, artigo 17.º (Taxas) — Portal das Finanças — accessed 2026-10-10
- AT, Ofício Circulado n.º 40129/2026 (2026-01-06): IMT practical tables from 1 January 2026 — accessed 2026-10-10
- Decreto-Lei n.º 97/2026, de 20 de maio, art. 6.º (CIMT art. 17.º n.os 10–12) — Portal das Finanças — accessed 2026-10-10
- AT, Ofício Circulado n.º 40131/2026 (2026-09-04): non-resident IMT rate — accessed 2026-10-10
- Código do IMT, artigo 36.º (Prazos para pagamento) — Portal das Finanças — accessed 2026-10-10
- Tabela Geral do Imposto do Selo — Portal das Finanças — accessed 2026-10-10
- Código do IMI, artigo 112.º (Taxas) — Portal das Finanças — accessed 2026-10-10
- Código do IMI, artigo 120.º (Prazo de pagamento) — Portal das Finanças — accessed 2026-10-10
- Código do IMT, artigo 12.º (Valor tributável) — Portal das Finanças — accessed 2026-10-10
- Portal das Finanças — Consultar Taxas IMI/CA por Município e Ano — accessed 2026-10-10
This guide is general information, not financial, tax or legal advice. Confirm with Portal das Finanças, AIMA, Banco de Portugal or a qualified professional for your situation.