Taxes When Buying Property in Portugal: IMT, Stamp Duty and IMI

Buying a home in Portugal triggers two taxes before the deed: IMT, the property transfer tax, charged on a sliding scale from 0% to 7.5%, and stamp duty (Imposto do Selo) of 0.8% on the price. After that, the owner pays IMI, an annual municipal property tax, which Lisbon set at 0.3% of the tax value for 2026.

The IMT bands below are those in force from 1 January 2026, published by the tax authority (Autoridade Tributária, AT) in Ofício Circulado 40129/2026. All figures are as of November 2026 and apply to mainland Portugal; the Azores and Madeira have higher thresholds.

How much IMT will I pay on a home in Lisbon?

IMT depends on the price (or the tax value, if higher) and on how you will use the home. A permanent own home (habitação própria e permanente) has a 0% band at the bottom; a second home or a home bought to rent starts at 1%. For prices up to €660,982 you multiply the price by the marginal rate and subtract the deduction (parcela a abater); above that, one flat rate applies to the whole price.

A worked example: a buyer aged over 35 pays €300,000 for an apartment that will be their permanent home. IMT is €300,000 × 7% minus €10,457.96, which comes to €10,542.04. If the same flat were a second home, IMT would be €11,605.50. Other rates in the IMT Code: 6.5% for other urban property such as shops and offices, 5% for rural land, and 10% for companies controlled from listed low-tax jurisdictions.

Do non-residents pay a higher rate?

Yes. Since Decreto-Lei 97/2026 of 20 May, a buyer who is not tax-resident in Portugal pays a flat 7.5% IMT on a residential property, with no exemption or reduction. The test is tax residence, not nationality, so Portuguese citizens living abroad are also caught.

Article 17 of the IMT Code lists three ways out:

• the buyer was already treated as a Portuguese tax resident;
• the buyer becomes tax-resident within two years of the purchase;
• the home is let as a residential rental within six months, at a rent within the limits set by Decreto-Lei 97/2026, for at least 36 months during the first five years.

In the last two cases you first pay 7.5% and then ask the AT to cancel the difference. The request must be filed within six months of becoming resident or of signing the lease. The legal text is on the Portal das Finanças page for IMT Code article 17. How the AT applies the rule to married couples with mixed residence was still being clarified in 2026, so ask a contabilista certificado (certified accountant) or a lawyer before signing.

Can buyers under 35 skip IMT and stamp duty?

Buyers aged 35 or under pay no IMT and no purchase stamp duty on a first permanent home priced up to €330,539 in mainland Portugal (as of November 2026). The exemption comes from Decreto-Lei 48-A/2024. According to the Portal das Finanças, you must:

• be 35 or younger on the date of purchase;
• not be claimed as a dependant on anyone’s IRS return;
• not own, and not have owned in the previous three years, an urban residential property;
• buy the home as your own permanent residence.

Above €330,539 you pay tax only on the part of the price over the limit. If only one of two buyers qualifies, only that buyer’s half is exempt. Non-resident buyers cannot use it because of the 7.5% rule.

What does stamp duty cost on a purchase and a mortgage?

Stamp duty on a property purchase is 0.8% of the same value used for IMT, so €2,400 on a €300,000 home. A mortgage carries its own stamp duty on the amount borrowed, plus stamp duty on interest and bank fees over the life of the loan. Your bank’s pre-contract information sheet (FINE) lists these charges; ask for it before you commit.

What are the steps from CPCV to the deed?

Most Portuguese purchases follow the same order. Each step needs your NIF (tax number), and a mortgage needs a Portuguese bank account.

1. Agree the price and sign the contrato-promessa de compra e venda (CPCV, promissory contract). It fixes the price, the deed date and the deposit (sinal). Under the Civil Code, a seller who backs out returns double the deposit and a buyer who backs out loses it, unless the contract says otherwise.
2. Check the property: the land registry certificate (certidão permanente), the tax record (caderneta predial), the usage licence and the energy certificate.
3. Arrange the mortgage, if any, and let the bank’s valuer visit.
4. Submit the IMT declaration (Modelo 1) on the Portal das Finanças or at a tax office before the deed, then pay IMT and stamp duty. The AT says payment is due the same day or within 30 days, and the deed cannot go ahead without proof of payment or exemption.
5. Sign the deed (escritura) at a notary, or use the Ministry of Justice’s Casa Pronta service, which handles the deed and registration at one counter.
6. Register the purchase at the land registry (Conservatória do Registo Predial) if the notary or lawyer has not done it.

Notary, registry and lawyer fees are extra. Registry and Casa Pronta fees are fixed in the IRN fee table, while notaries and lawyers set their own prices; ask each for a written quote.

How much IMI will I pay every year?

IMI is charged on the property’s tax value (valor patrimonial tributário, VPT), not the price you paid. Municipalities set the rate for urban property between 0.3% and 0.45%. Lisbon kept the minimum 0.3% for 2026, while Oeiras moved to 0.45% and Cascais to 0.35%. A Lisbon flat with a VPT of €150,000 pays €450 a year at 0.3%.

The owner on 31 December pays the following year. According to gov.pt, bills up to €100 are due by 31 May; bills from €100 to €500 are split between May and November; bills over €500 are split into May, August and November.

A new permanent home with a VPT up to €125,000 can be exempt for three years (extendable by two if the municipality agrees) when the household’s gross income is within the legal limit; on a purchase, the AT applies it automatically from its own data. Owners of high-value residential property also pay AIMI, an additional yearly tax; the Portal das Finanças publishes the thresholds.

Bottom line

For a resident buying a €300,000 permanent home, purchase taxes come to roughly €12,900 before fees, or zero for a qualifying buyer under 35. Becoming tax-resident before you buy, or within two years after, can save a non-resident thousands of euros under the 2026 rules, so plan the order of events with an accountant.

FAQ

Is IMT paid on the price or on the tax value?

IMT and stamp duty are charged on whichever is higher: the declared price or the property’s VPT. In Lisbon the price is usually higher.

Who pays IMT, the buyer or the seller?

The buyer pays IMT and the purchase stamp duty. The seller deals with capital gains on the sale in their own IRS tax return.

Can I get the IMT back if the purchase falls through?

An IMT assessment stays valid for two years. If you do not buy within that time, the AT says you can ask for it to be cancelled through a reclamação graciosa within the following year.

Is renting cheaper in the first years?

That depends on prices, your stay and your residency plans. Our guide to renting an apartment in Lisbon covers contracts and deposits.