Update, 31 August 2026 — Decree-Law 97/2026 (in force since 25 May 2026) applies a flat 7.5% IMT rate to non-tax-resident buyers of housing, replacing the progressive brackets presented below — which remain applicable to residents. Our analysis: Portugal's 7.5% IMT for non-residents.

Key points

  • Three taxes frame the acquisition: IMT (progressive transfer tax), 0.8% stamp duty (Imposto do Selo), then annual IMI of 0.3 to 0.45% of the tax value for urban property (rate set by each municipality).
  • The base is always the higher of the acquisition price or the VPT (tax patrimonial value) — never just the listed price.
  • Housing IMT: progressive brackets, revalued yearly (Circular No. 40129 for 2026); a top rate of 7.5% above roughly €1.15M. Non-residential urban: 6.5%; rural: 5%.
  • A mortgage of more than five years adds 0.6% stamp duty on the borrowed capital.
  • Above €600,000 of residential VPT held by an individual, the AIMI wealth surcharge adds to IMI.

What exactly are these taxes computed on?

Portuguese tax law systematically takes the higher of the deed price and the tax patrimonial value (VPT) recorded in the tax register. An old, low VPT therefore does not reduce IMT when the price is higher; conversely, a recently revalued VPT can exceed a negotiated price. Every acquisition analysis starts by reading the caderneta predial — the property's tax sheet.

How much does the transfer itself cost?

IMT is progressive for housing: brackets are revalued each year — for 2026 by Circular No. 40129 of the tax administration, with a zero-rate first bracket, rising marginal rates, a 6% flat band at the top of the scale, then 7.5% above roughly €1.15M. Non-residential urban property (offices, retail, services) pays 6.5%, rural land 5%. In all cases, the 0.8% stamp duty applies on the same base. A dedicated regime — "IMT Jovem" — also exempts buyers aged 35 or under for their main residence up to a cap, a reminder that the scale is as much public policy as revenue.

What do you pay each year afterwards?

IMI, the municipal property tax: each municipality sets its rate between 0.3% and 0.45% of the VPT for urban property. For large residential holdings in personal names, AIMI adds a surcharge above €600,000 of cumulated VPT. Holding through a structure — covered in our dedicated article on Portuguese vehicles — follows its own rules, including specific AIMI rates.

The classic mistake to avoid

Budgeting "price plus notary fees" as in France. In Portugal, the dominant acquisition cost line is tax: IMT plus stamp duty represent, depending on value and property type, from 1% to over 8% of the base. In a structured operation, these amounts are modelled before the promise — and verified on the caderneta, not on the listing. It is the rule our Faro file under review follows, line by line. Article d'information générale, vérifié à la date de publication. La réglementation évolue : chaque opération appelle l'analyse de conseils locaux habilités.