IMT Tax Simulation

Buying property in Portugal ? You’ll likely pay IMT – but not always.

If you’re planning to buy a property in Portugal, there’s a good chance you’ll have to pay IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) – the country’s property transfer tax.

However, exemptions do exist, particularly if you’re under 35 or if the property is intended to be your primary residence and its value falls under a certain threshold.

Our IMT Calculator helps you estimate whether or not you’ll need to pay this tax, and if so, how much. It also includes the stamp duty (Imposto do Selo) in the final amount.

What is IMT ?

IMT is a municipal property transfer tax that applies whenever a real estate property changes ownership in Portugal. It’s calculated on the higher value between the purchase price stated in the deed and the property’s fiscal value (Valor Patrimonial Tributário).

The applicable IMT rate varies depending on:

• The value of the property

• Its location (mainland Portugal, Azores, or Madeira)

• Its purpose (main residence, second home, investment, land, etc.)

Rates generally range from 2% to 8%, following a progressive scale defined by law. In some cases, a flat rate of 6.5% or 7.5% may apply (for urban plots or second homes over certain thresholds).

When can you be exempt from IMT ?

You may benefit from a full exemption from IMT if the property is intended to be your primary residence and:

• The purchase price or fiscal value is equal to or below €104,261 (mainland Portugal),

• Or equal to or below €130,326 in the Azores or Madeira.

These thresholds are updated periodically and only apply if the buyer declares that the property will be used as their permanent home.

Important: The exemption does not apply to:

• Second homes

• Rental investments

• Commercial properties

IMT Exemptions for Investors: Renovation & Resale

If you’re acquiring a property as an investor, you may also qualify for IMT exemptions or reimbursement under specific conditions.

✔️ Properties in Urban Rehabilitation Areas (ARU)

If the property is located within a designated Urban Rehabilitation Area and you commit to carrying out renovation works, you may benefit from a full exemption from both IMT and Stamp Duty.

To qualify, you must:

• Submit a rehabilitation plan to the municipality,

• Complete the renovation within a defined timeframe,

• Obtain the proper certification of completion.

In most cases, IMT is paid upfront, and then reimbursed once the renovation is certified.

✔️ Properties classified as national or municipal heritage

For properties that are officially classified as monuments of public interest, or with cultural or historical value, IMT may also be waived, especially if the buyer undertakes preservation works under official supervision.

✔️ Professional resellers

Professional property resellers (usually companies) may benefit from a conditional IMT exemption if:

• The property is bought for resale purposes, and

• It is resold within 3 years.

If the resale does not happen within the allowed period, the IMT must be paid retroactively, often with interest.

These exemptions are not automatic. They require proper documentation, prior approval, and compliance with strict conditions.

What is the “deductible amount” in the IMT calculation ?

Portugal uses a progressive IMT scale that includes, in certain tiers, a deductible amount to reduce the total tax due.

For example:

If you buy a home for €200,000 on the mainland:

• The applicable IMT rate might be 7%, which equals €14,000.

• But for that specific tier, the law allows a deduction of €10,252.92.

• This means your final IMT due would be €3,747.08.

The higher the property value, the higher the rate – but also the higher the potential deduction. However, the top tiers of the scale don’t allow any deduction, meaning more expensive properties are taxed at full rate.

Also, the deduction differs based on the type of property use:

Buying for your main residence gives access to larger deductions than buying for secondary residence or investment.

What about Stamp Duty (Imposto do Selo) ?

In addition to IMT, every property buyer in Portugal must pay Stamp Duty, which is a fixed rate of 0.8% on the purchase price.

For example, on a €200,000 property, you’ll pay €1,600 in Stamp Duty.

Our IMT Calculator includes this value automatically in the final cost estimation, so you’ll get a complete picture of your total acquisition taxes.

(This simulator is updated as of January 2025, reflecting the most recent thresholds and IMT brackets in force.)

Frequently Asked Questions

1. What does the IMT Calculator do ?

It gives you an estimate of the total taxes you’ll pay when buying a property in Portugal, based on value, use, and location.

2. What exactly is IMT and when is it paid ?

IMT is a real estate transfer tax due at the time of purchase, usually paid just before signing the deed. It’s mandatory for most property transactions.

3. Is the amount shown by the calculator final and accurate ?

It provides a highly accurate estimate, but the final value must always be confirmed by your notary or tax representative, as tax authority calculations take precedence.

4. Are there any exemptions or reductions ?

Yes – especially for main residences below specific thresholds, young buyers, or investors engaged in rehabilitation or resale projects.

5. How can I know if I qualify for an exemption ?

Simply use the calculator and indicate the intended use of the property. If your profile matches an exemption scenario, the result will show zero IMT due.

6. Is the IMT the same for holiday homes or rental properties ?

No. Properties used as second homes or for investment are usually taxed at higher rates, with fewer deductions or no exemptions.

7. What’s the difference between IMT and Stamp Duty ?

IMT is a progressive tax based on property value and use. Stamp Duty is a flat 0.8% tax applied on all real estate purchases regardless of purpose.

_____________________________________

At Airnest REIM, we don’t just manage properties — we support our investor clients from A to Z with a global, rigorous, and results-driven approach.

Whether it’s about:

• Tax filings (VAT, IRS, business registration),

• Choosing the most advantageous tax regime (exemption or standard regime),

• Recovering VAT on your operational expenses,

• Or simply maximizing profitability while staying fully compliant…

👉 Our team takes care of it all for you, in partnership with our dedicated accounting and tax advisory firm, specialized in Alojamento Local.

We also provide:

• Custom profitability calculators,

• Legally compliant contract templates,

• Proactive accounting and administrative follow-up,

• And fully managed rental operations.

All this is supported by a secure client portal and cloud-based accounting system.

The result ? You stay focused on your investment goals — we handle the rest.

Airnest REIM – your trusted partner for stress-free property investment in Portugal.