What is the basis for IMT computation?


IMT is levied on the following amount, whichever is higher:

- The sale price indicated on the contract;
- The VPT - “Valor Patrimonial Tributario” (Property Rateable Value) assessed by the Portuguese Revenue, as explained in more detail in the IMI section.

When an exchange takes place, the taxable amount is the difference between the properties declared values, or the difference between the Properties Rateable Values, if higher. In a promissory contract of purchase and sale, with a clause to assign the buyer’s contractual position to a third party, IMT is due by the promissory buyer on the value paid to the promissory vendor, and due by a third party that acquires the buyer’s position.

The VPT of most buildings was established according to the anterior Property Council Tax Law and has not yet been revised under the new IMI Law. In these situations, IMT is temporarily computed on the value stated in the contract (e.g. deed of sale) or on the current VPT, whichever is higher. The Portuguese Revenue may later on correct the temporary IMT tax, if the new VPT (assessed in accordance with the IMI law) is superior to the value used for computation of the initial IMT.


Which rates are applicable?

IMT rates vary according to the nature and value of the property.

Residential Properties: The purchase of a house/apartment is subject to the following IMT rates:

Table 1. Holiday Dwelling

Table 2. is applicable to holiday properties and buy to let properties.

Table 3. is applicable to the permanent dwellings of Portuguese Tax Residents.


Based on Table 1

-Properties valued between 87.500,00 € and 521.700,00 € are taxed at the corresponding IMT bracket with a fixed amount being deducted;
-Properties valued above 521.700,00 € are taxed at a flat rate of 6% without any deduction.

As an example: if a house is purchased at 450.000,00 €, it will generate an IMT of 25.550,00 € (450.000,00 € x 8% - 10.450,00 € ) Land for construction, commercial properties and other urban.

Property Value (Euros) Percentual Rate Deduction (Euros) buildings: IMT is levied at a flat rate of 6,5%

Rustic Buildings: IMT is levied at a flat rate of 5%

Black Listed Offshore companies: IMT is levied at a penal rate of 8% if the property is bought through an offshore company incorporated in any jurisdiction included in the Portuguese black-list of tax havens (see Appendix A);

Note that non-resident companies registered in other jurisdictions, such as Delaware, Malta, New Zealand, UK are not subject to the penal IMT rate.


Table 2 is applicable to the permanent dwellings of Portuguese Tax Residents.



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