Property Taxes in Portugal: IMT, Stamp Duty and IMI Explained (2026)
Updated: 1 day ago
Every property in Portugal has two prices: the one you agree, and the one you pay.
Property taxes in Portugal are not difficult once you see the full cycle: a transfer tax and stamp duty when you buy, an annual municipal tax while you own, and capital gains tax when you sell. What catches buyers out is timing, and this year, a new rule for non-residents. This is our guide to property taxes in Portugal in 2026, with the current IMT brackets and worked examples.
Three moments: buying, owning, selling
At purchase: IMT and stamp duty, paid before the deed.
Every year: IMI, and AIMI on larger portfolios.
At sale: capital gains tax on the profit, with exemptions for reinvestment in a main home.
IMT: the property transfer tax
IMT is the largest tax at purchase. It is calculated on the higher of the price in the deed and the property's tax value (VPT), and the rate depends on what you buy and how you will use it. For residential property the scale is progressive; the 2026 brackets for mainland Portugal are:
Main home (habitação própria e permanente)
Up to €106,346: exempt
€106,346 to €145,470: 2%
€145,470 to €198,347: 5%
€198,347 to €330,539: 7%
€330,539 to €660,982: 8%
€660,982 to €1,150,853: 6% flat
Above €1,150,853: 7.5% flat
Second homes and other residential purchases
Up to €106,346: 1%
€106,346 to €145,470: 2%
€145,470 to €198,347: 5%
€198,347 to €330,539: 7%
€330,539 to €633,931: 8%
€633,931 to €1,150,853: 6% flat
Above €1,150,853: 7.5% flat
In the progressive brackets, the rate applies with a deduction, so the effective rate is always lower than the headline one. Rural land pays a flat 5%, other urban property such as shops or offices 6.5%, and companies based in blacklisted jurisdictions 10%.
New in 2026: a flat 7.5% for non-residents
Since 25 May 2026, under Decree-Law 97/2026, non-residents buying residential property pay IMT at a flat 7.5%, whatever the price. The excess over the normal rates is refunded if, within two years, the buyer becomes a Portuguese tax resident, or if the property is let within six months at a moderate rent of up to €2,300 a month and stays let for at least 36 months during the first five years.
Buyers aged 35 or under
Young buyers purchasing their first permanent home are exempt from IMT and stamp duty up to €330,539, with partial relief up to €660,982.
Stamp duty
Stamp duty (imposto do selo) is 0.8%, calculated on the same base as IMT. If you take a mortgage, the loan itself pays a further 0.6% stamp duty for terms of five years or more.
A worked example
A €500,000 apartment in Lisbon, with a tax value below the price:
Bought as a main home by a resident: IMT €26,236.65 + stamp duty €4,000 = €30,236.65
Bought as a second home by a resident: IMT €27,300.11 + stamp duty €4,000 = €31,300.11
Bought by a non-resident: IMT €37,500 + stamp duty €4,000 = €41,500, of which €10,199.89 to €11,263.35 is refundable if the buyer becomes resident within two years, depending on how the property is then used
Add notary, registration and legal fees, and keep a buffer. Most buyers should plan for 7% to 10% on top of the price.
“Plan the taxes before the CPCV, not after it.”
IMI: the annual property tax
IMI is paid every year to the municipality. For urban property the rate is between 0.3% and 0.45% of the tax value, set by each council; for rural property it is 0.8%. The VPT is usually well below market value, so on a property with a VPT of €200,000 in a municipality charging 0.3%, IMI is €600 a year.
IMI is due by whoever owns the property on 31 December and is billed the following year, in up to three instalments. Buy in late December and that year's IMI is yours; buy in early January and it is the seller's.
AIMI: the additional tax on larger holdings
AIMI applies when the combined tax value of residential property and building land held by one person exceeds €600,000, or €1.2 million for married couples who opt for joint taxation. Above that allowance, individuals pay 0.7%, rising to 1% above €1 million and 1.5% above €2 million.
When you sell: capital gains
Half of the gain is added to your other income and taxed at progressive rates. Since 2023 this applies to non-residents as well. Gains on a main home are exempt if reinvested in another main home in Portugal, the EU or the EEA within the legal deadlines. Our full guide, in Portuguese, is mais-valias na venda de casa.
How to budget, without overcomplicating it
Decide how you will use the property: main home, second home or investment. The rate depends on it.
Confirm your residence status, and whether you can qualify for the non-resident refund.
Ask for the caderneta predial early: the VPT drives IMT, IMI and AIMI.
Add 1% to 2% for notary, registration and legal fees.
Never sign a CPCV without knowing the total cash needed on the day of the deed.
For the full sequence, read buying property in Portugal step by step and CPCV explained.
Frequently asked questions
How much is IMT in Portugal?
IMT is charged on the higher of the purchase price and the property's tax value (VPT). For residential property it is progressive, from 0% or 1% up to 8%, with a flat 6% above €660,982 for a main home (€633,931 for other homes) and 7.5% above €1,150,853. Rural land pays 5% and other urban property 6.5%.
Do non-residents pay more property tax in Portugal?
Yes, since 25 May 2026. Non-residents buying residential property pay IMT at a flat 7.5%. The difference to the normal rates is refunded if the buyer becomes a Portuguese tax resident within two years, or lets the property within six months at a moderate rent (up to €2,300 a month) for at least 36 months in the first five years.
What is IMI and how much is it?
IMI is the annual municipal property tax. For urban property it is between 0.3% and 0.45% of the tax value (VPT), set by each municipality; for rural property it is 0.8%. It is due by whoever owns the property on 31 December.
Is there a wealth tax on property in Portugal?
There is AIMI, an additional annual tax on residential and building land when the total tax value held by one person exceeds €600,000 (€1.2 million for couples filing jointly). Rates for individuals are 0.7%, 1% above €1 million and 1.5% above €2 million.
Do young buyers pay IMT?
Buyers aged 35 or under purchasing their first permanent home are exempt from IMT and stamp duty up to €330,539 in 2026, with partial relief up to €660,982.
Further reading: Cost of Buying a House in Portugal: the Full Budget for 2026, and Buying Property in Portugal as a Foreigner: What Is Different.
Want the numbers for a specific property before you commit? Request a private conversation or read our independent guide to buying property in Portugal.
Updated October 2026. Sources: IMT Code and 2026 brackets (State Budget 2026); Decree-Law 97/2026; Stamp Duty General Table; IMI Code. Figures for mainland Portugal; Madeira and the Azores apply different brackets. General information only; not tax advice. Wiseguys Properties, AMI 23109 · info@wgpadvisors.com
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