Property Taxes

Understand the Portuguese property tax regulations...

Property Transfer Tax

A property transfer tax (Imposto Municipal sobre as Transmissões - IMT) must be paid by the buyer of any property at the time of purchase. This tax is due whether it is a new build or an existing property. The rate of this tax differs depending on the purchase price and whether the property is to be used for a primary home or secondary/rental property.

In certain rural areas of the country, some reductions in IMT may be available for those aged between 18 and 35 years of age buying a permanent, residential property. More information on reductions may be available from the bank assisting with financing the purchase.

  • For information on the rates of property transfer tax due visit: The Finance Portal (in Portuguese)

Local Property Taxes

Council/municipal tax

The owner of a residential property whether it is used by themselves or leased out must pay a local tax known as Imposto sobre Municipal Imoveis (IMI). This tax is raised and spent by the town hall (municipio) and must be paid in May each year. Amounts between  €100 and €500  can be are paid in two equal payments due in May and November. Amounts over €500 can be paid in three installments during May, August and November If the calculated tax is not greater than €10, no payment is due.

There is an exemption period of three years on urban buildings if intended for permanent housing if the value of the property does not exceed €125,000 and the owners income does not exceed €153,300.

The amount due is calculated differently for homes built prior to 2003 than for those built after that year.

Maisvalias

When a property is sold, or it otherwise changes hands, the local town hall raises a tax called maisvalias which is a tax on the increase in the value of urban land (excluding the value of any buildings). The tax includes a realistic allowance for inflation in the growth in value of the land. Some transactions, such as transfers between husband and wife, are exempt. However, maisvalias remains payable on the disposal of a main residence even for Portuguese residents.

This is a tax paid at the same time as personal income tax (Imposto sobre o Rendimento das Pessoas Singulares - IRS) at the end of the year and is not taxed locally.