Tax rates to buy a property in Portugal

23/11/2023


Are you thinking in purchase a property in Portugal? Be aware of the taxes!

The property tax rates in Portugal include several different types of taxes that property owners may encounter. These taxes can vary based on the property's location, type, and usage. Here are some of the main property-related taxes in Portugal:

  1. IMI (Imposto Municipal sobre Imóveis - Municipal Property Tax):
    • IMI is an annual tax levied on the rateable value of urban properties (buildings and land) located in Portugal. The rate can vary from 0.3% to 0.45% for urban properties owned by individuals and can be higher for properties owned by companies or entities. Municipalities can set their own rates within these limits.
  2. IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis - Municipal Property Transfer Tax):
    • IMT is a one-time tax paid when purchasing a property. The rate is progressive and depends on the property's value, the intended use (permanent residence, secondary residence, or investment), and the buyer's tax residency status. Different rates apply to individuals and corporations.
  3. Stamp Duty (Imposto do Selo):
    • Stamp Duty is applicable to various legal transactions in Portugal, including property acquisitions. The rate for property transactions can range from 0.8% to 6.5%, based on the property's value and type of buyer (individual or corporate).
  4. AIMI (Adicional ao Imposto Municipal sobre Imóveis - Additional Municipal Property Tax):
    • AIMI is an additional property tax applicable to urban properties whose total value exceeds a certain threshold (€600,000 for individuals or €1,000,000 for companies). The rate varies for individuals (0.7% on the property value exceeding the threshold) and companies (1%).

It's important to note that tax rates and regulations can change. Local municipalities might also apply specific deductions or exemptions, and certain property types, such as rural properties, may have different tax treatments.

For the most current and detailed information regarding property tax rates and regulations in Portugal in 2024, we recommend consulting with a local tax advisor, accountant, or legal professional well-versed in Portuguese property taxation laws. They can provide accurate and updated guidance based on the specific circumstances of the property transaction.

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