IMT & Stamp Duty in Portugal (2026): Brackets, Rates, Non-Resident Rules, and Worked Examples

What is IMT?

IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is Portugal's one-off property transfer tax, paid by the buyer on the purchase of real estate located in Portugal. It is levied on the higher of the purchase price or the property's taxable value (VPT), and the rate depends on three factors: property type (urban, rustic), location (mainland or the Autonomous Regions of Madeira and the Azores), and purpose (permanent home, secondary/investment home, or non-residential). The tax must be settled before the deed is signed; a notary cannot complete the transfer without proof of payment.

IMT is distinct from IMI, the annual municipal property tax. IMT is paid once, at purchase; IMI is paid every year thereafter. Both are calculated on, or reference, the VPT recorded in the property's caderneta predial.

How much is IMT in 2026?

For 2026, the escalões (brackets) were increased by 2% versus 2025. The tables below reproduce the official figures from Autoridade Tributária Ofício Circulado n.º 40129/2026 (published 6 January 2026, in force since 1 January 2026 under the State Budget law, Lei n.º 73-A/2025). IMT uses a "parcela a abater" (deductible amount) system: you apply the marginal rate for the band to the whole taxable value, then subtract the deduction.

Two differences distinguish the secondary-home table from the HPP table: the first band is taxed at 1% (not exempt), and the 8% band ends earlier, at €633,931 instead of €660,982.

Island thresholds are 25% higher than the mainland. For a secondary/investment home in the islands, the first band is taxed at 1% and the top marginal 8% band ends at €792,414. Other IMT rates (all buyers, standard): rustic land is taxed at a flat 5%; other urban property and commercial premises at a flat 6.5%; and any property acquired by a buyer domiciled in a blacklisted tax haven at a flat 10%.

How is IMT calculated?

The formula is:

IMT = (higher of price or VPT) × applicable rate − deduction

Example 1 — €200,000 permanent home (mainland). The value falls in the 7% band. 200,000 × 7% = 14,000; minus the deduction of 10,457.96 = €3,542.04.

Example 2 — €400,000 permanent home (mainland). The value falls in the 8% band. 400,000 × 8% = 32,000; minus 13,763.35 = €18,236.65.

Example 3 — €650,000 second home (mainland). For secondary residential property, values from €633,931 to €1,150,853 attract a flat 6% with no deduction. 650,000 × 6% = €39,000. (Note: a €650,000 permanent home would instead sit in the 8% band and pay 650,000 × 8% − 13,763.35 = €38,236.65.)

Remember to add stamp duty of 0.8% on top in each case: €1,600 on the €200,000 home, €3,200 on the €400,000 home, and €5,200 on the €650,000 home.

What is the non-resident 7.5% rule?

Under Decreto-Lei n.º 97/2026 of 20 May 2026, part of the "Construir Portugal" housing package, the acquisition of urban property (or an autonomous fraction) intended exclusively for housing by a buyer who is not tax-resident in Portugal is taxed at a flat 7.5% IMT, with no exemptions or reductions. The rule was added as paragraphs 10–12 of Article 17 of the IMT Code and took effect on 25 May 2026, applying to every acquisition from that date, per the Ordem dos Contabilistas Certificados technical note.

Worked example — €300,000, non-resident buyer. 300,000 × 7.5% = €22,500. A resident buying the same property as a permanent home would pay 300,000 × 7% − 10,457.96 = €10,542.04; as a second home, 300,000 × 7% − 9,394.50 = €11,605.50. The non-resident premium here is €11,957.96 versus the HPP calculation — consistent with: "Initial IMT Paid = €300,000 x 7.5% = €22,500... Recalculated IMT = (€300,000 x 7%) - €10,457.96 = €10,542.04. Refund Amount = €22,500 - €10,542.04 = €11,957.96."

Crucially, the rule turns on tax residency, not nationality — it applies equally to EU/EEA and non-EU buyers, and even to non-resident Portuguese emigrants. Because the flat 6%/7.5% rates already apply to all buyers above €1,150,853, the non-resident rule makes no difference above that threshold. Per updated commentary (June 2026), "the new 7.5% rule has the biggest impact in the €200k–€700k range — exactly where most foreign buyers shop for apartments and holiday homes."

Exceptions and the refund route. The 7.5% rate does not apply — or is refundable — where the buyer:

• is already a Portuguese tax resident at the date of acquisition;
• becomes a Portuguese tax resident within two years of the acquisition; or
• allocates the property to residential letting at a moderate rent (capped at €2,300/month), signing a lease within six months of purchase and keeping it let for at least 36 months (consecutive or not) within the first five years.

Where an exception is met after the purchase, the buyer pays 7.5% up front and then applies to the Autoridade Tributária to cancel the difference between the 7.5% paid and what the standard progressive rates would have produced. The application must be filed within six months of becoming tax-resident or of signing the eligible lease; missing that deadline can forfeit the refund.

Legal status. The measure is politically motivated (the government stated its aim is to raise revenue and improve equity in housing access) but has drawn EU-law criticism, with tax lawyers noting it may breach the free movement of capital (Article 63 TFEU). The Court of Justice has previously struck down analogous Portuguese non-resident property taxes (e.g. Hollmann, C-443/06, 2007; MK, C-388/19, 2021). A further live point: the enacted decree contains no nationality carve-out — it turns purely on tax residency, so non-resident Portuguese emigrants are caught unless they meet a statutory exception. Non-resident buyers should take Portuguese tax advice on their specific transaction.

What is IMT Jovem (under-35 exemption)?

IMT Jovem exempts buyers aged 35 or under from IMT and stamp duty on their first permanent home. For 2026, the full exemption applies up to €330,539 on the mainland (the top of the 4th bracket), with a partial exemption up to €660,982; above that, no relief applies and standard rates are charged on the full value.

The mechanics for the partial band (mainland): values from €330,539 to €660,982 are taxed at a marginal 8% with a deduction of €26,443.12 — in effect, tax is only charged on the amount exceeding €330,539. In the Autonomous Regions the full exemption runs to €413,174 and partial relief to €826,228 (with a deduction of €33,053.92 in the partial band).

Eligibility conditions, per PwC Portugal's 2026 tax guide and the Portal das Finanças IMT Jovem page:

• aged 35 or under at the date of the deed;
• the property must be a first, exclusively own-and-permanent home;
• the buyer must not be an IRS dependant in the year of acquisition;
• the buyer must not own — or have owned in the previous three years — any residential property or a share of one.

The exemption covers IMT, the 0.8% purchase stamp duty, and registration fees (emolumentos) up to the €330,539 limit, under Decreto-Lei n.º 48-D/2024. It does not, however, exempt the separate stamp duty on a mortgage loan (0.6%), which is still payable. Where a property is bought jointly with someone who is not eligible, the relief applies only to the eligible buyer's share. Eligibility is claimed via the Modelo 1 IMT declaration before the deed, and applies regardless of nationality — a qualifying under-35 foreign buyer who is a tax resident can benefit.

How much is stamp duty?

Stamp duty (Imposto do Selo) on the purchase is a flat 0.8% of the acquisition value — the higher of price or VPT — with no brackets and no deduction, under the General Stamp Duty Table. On a €300,000 purchase, that is €2,400.

If the purchase is financed with a mortgage, additional stamp duty is charged on the loan amount, at rates that depend on the term: 0.6% for loans of five years or more, 0.5% for loans of one to five years, and 0.04% per month (or fraction) for loans under one year. On a €240,000 loan over 30 years, the loan stamp duty is €1,440. Bank fees associated with the loan (arrangement, valuation, formalisation) attract a further 4% stamp duty.

When and how do you pay?

IMT and stamp duty are paid by the buyer before the deed (escritura). The process:

1. Submit a Modelo 1 IMT declaration on the Portal das Finanças (Cidadãos › Serviços › Modelo 1 IMT), or at a Finanças office.
2. The system generates a Documento Único de Cobrança (DUC) showing the exact amount.
3. Pay via homebanking, Multibanco, at a Finanças counter, at the CTT, or at a bank with an AT protocol.
4. Present proof of payment at the deed — without it, the deed cannot proceed.

Since Decreto-Lei n.º 97/2026 (in force 25 May 2026), buyers have 30 days from issue of the guia to pay. IMT is a national tax collected by the Autoridade Tributária; although it is a "municipal" tax, the rates and brackets are set nationally and do not vary by municipality. Stamp duty is declared and paid together with IMT before the deed.

What other costs should buyers budget?

Beyond IMT and stamp duty, buyers should budget for deed, registration, and legal costs. For most resident buyers, budget roughly 7% to 10% of the purchase price for taxes, notary or Casa Pronta fees, registry fees, legal fees, and related costs; non-resident residential buyers should budget more, given the flat 7.5% IMT.

The Casa Pronta one-stop service (at Conservatórias do Registo Predial) bundles deed, registration, and IMT settlement in a single act, and is usually the cheapest route for straightforward purchases.

Disclaimer

All figures reflect 2026 values as published in Autoridade Tributária Ofício Circulado n.º 40129/2026, the State Budget (Lei n.º 73-A/2025), and Decreto-Lei n.º 97/2026. Tax rules change, and thresholds are updated annually. This article is general information, not personalised tax advice. LoanNest (operated by JPDA Lda) is a credit intermediary — registration pending with Banco de Portugal — and not a tax adviser or law firm; confirm your specific position with the Autoridade Tributária, a certified accountant, or a lawyer before signing any contract.