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IMT

IMT is a tax paid by the buyer when purchasing a property. It´s important to consider this cost when buying!

28 Sep 2023 min de leitura

The Municipal Property Transfer Tax (IMT) is an indirect tax levied on property purchases. At the time of the transaction, the buyer is responsible for paying this tax, making it one of the most important tax obligations for those purchasing a property.
The amount of IMT payable is determined on the basis of the purchase price of the property, and the applicable rate varies according to the type and value of the property.

This tax is paid by the buyer at the time of the transaction. The tax applies to all property transactions, the rate being set by the Portuguese state and varying according to the purchase price. The rate applicable to properties worth more than €550,000 is 6%. For rustic or other types of property, the rates are 5% and 6.5% respectively.

Structure of IMT rates:

Urban property
For urban property, the rates are progressive, i.e. the IMT rate increases according to the value of the transaction. The current table establishes that the rate applicable to properties with an acquisition value of more than €550,000 is 6 %. However, for properties worth less than this, the rates vary between 1% and 6%, depending on the value of the property. The IMT table has a series of brackets ranging from 1% (for lower values) to 6%, with the rates applied progressively.

Rural properties
The IMT rate for rustic properties is 5%. This type of property covers agricultural, forestry or other non-urban land.

Other types of buildings (properties not classified as urban or rural)
In the case of other types of buildings, the IMT rate varies according to their specific characteristics, and is generally 6.5 per cent. This can include, for example, mixed buildings or other properties that are not clearly defined.

IMT table
The IMT table is organised by bracket, with a specific rate applied to each price range. For urban properties with low values, the rates start at 1%, increasing progressively as the value of the transaction rises. In the case of properties with very high values, the IMT can be as high as 6%.

This tax is one of the main sources of municipal revenue and has a significant impact on the cost of buying a property. As the value of the IMT can be substantial, it's important for buyers to factor it into their overall budget when purchasing a property.

What's more, IMT is just one of the taxes associated with buying property, and there are other possible charges, such as Stamp Duty and notary fees, which should also be taken into account when calculating the total cost of buying a property.

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