Last updated: October 2026 · rates for purchases completed in 2026
Of the property taxes in Portugal, two are due once — at the time of purchase — and two may be due every year afterwards. Knowing them in advance changes how you read an asking price, especially at the prime end of the market, where the one-off taxes can exceed 8% of the price.
One-off property taxes in Portugal at purchase
1. IMT — Property Transfer Tax
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the largest purchase cost. It is calculated on the higher of the purchase price or the property’s tax value (VPT), and the rate depends on whether the home will be your own permanent residence or a second home / investment.
2026 rates — Own permanent home (Habitação Própria e Permanente)
| Price / tax value | Rate |
|---|---|
| Up to €106,346 | 0% |
| €106,346 – €145,470 | 2% (marginal) |
| €145,470 – €198,347 | 5% (marginal) |
| €198,347 – €330,539 | 7% (marginal) |
| €330,539 – €660,982 | 8% (marginal) |
| €660,982 – €1,150,853 | 6% flat |
| Above €1,150,853 | 7.5% flat |
2026 rates — Second home or investment
| Price / tax value | Rate |
|---|---|
| Up to €106,346 | 1% |
| €106,346 – €145,470 | 2% (marginal) |
| €145,470 – €198,347 | 5% (marginal) |
| €198,347 – €330,539 | 7% (marginal) |
| €330,539 – €633,931 | 8% (marginal) |
| €633,931 – €1,150,853 | 6% flat |
| Above €1,150,853 | 7.5% flat |
“Marginal” bands are calculated with a deduction per bracket, so the effective rate is lower than the band rate — the Portal das Finanças simulator gives the exact figure. Above the flat-rate thresholds, the rate simply applies to the whole value. Buyers aged 35 or under purchasing their first permanent home may qualify for an exemption up to €330,539, subject to conditions.
2. Stamp Duty (Imposto do Selo)
Stamp duty of 0.8% applies to the purchase price (or tax value, if higher). If you take a mortgage, a further 0.6% stamp duty is charged on the loan amount.
Worked examples
Second home in Cascais at €750,000
IMT: 6% flat = €45,000
Stamp duty: 0.8% = €6,000
Total purchase taxes: €51,000 (6.8%)
Apartment in Lisbon at €1,500,000
IMT: 7.5% flat = €112,500
Stamp duty: 0.8% = €12,000
Total purchase taxes: €124,500 (8.3%)
Add notary and registration fees (typically a few hundred to around two thousand euros) and your lawyer’s fee.
Annual taxes after you buy
3. IMI — Municipal Property Tax
IMI is charged every year on the property’s tax value (VPT), not its market price — and the VPT is usually well below market value. For urban properties, each municipality sets a rate between 0.3% and 0.45%. Lisbon, for example, applies a rate near the bottom of that range. New permanent homes below certain value thresholds can qualify for a temporary exemption.
4. AIMI — Additional Property Tax
AIMI applies only to owners whose residential properties in Portugal have a combined tax value above €600,000 per individual (married couples or civil partners filing jointly can combine allowances). For individuals, the rate is 0.7% on the value above the allowance, 1% above €1 million and 1.5% above €2 million. Properties held through companies are taxed differently.
Property taxes in Portugal: quick answers
Do foreign buyers pay higher property taxes in Portugal?
No. IMT, stamp duty and IMI are the same whether you are Portuguese or foreign, resident or not. The exception is a company based in a jurisdiction on Portugal’s tax-haven list, which pays a much higher IMT rate.
Who pays the purchase taxes, buyer or seller?
The buyer. IMT and stamp duty are paid by the buyer before the deed. The seller may owe capital gains tax on their side, which does not affect your costs.
Can I pay less IMT?
If the home will be your own permanent residence, the lower rates in the first table apply — but you must actually live there. Buyers aged 35 or under may qualify for the first-home exemption described above.
What about Golden Visa and NHR?
Since October 2023, buying property no longer qualifies for a Golden Visa, and the NHR tax regime is closed to new applicants. Ownership itself is unaffected — anyone can still buy. Read more on our Why Portugal page.
Want the full cost of a specific property?
Send me the property or the development you’re considering and I’ll prepare a full estimate of taxes and fees before you make an offer.
General information, not tax advice. Rates are those in force for 2026 and are updated annually by the State Budget. Confirm your case with a tax adviser or lawyer.