Buying a property in Portugal creates two different kinds of costs: purchase-day taxes and transaction costs, and ongoing ownership costs. The main taxes newcomers encounter are IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis), stamp duty (Imposto do Selo), annual IMI and, for higher-value portfolios, AIMI. This guide explains what each one does and, importantly, where you actually go to declare and pay it.

IMT: the property transfer tax

IMT is normally paid by the buyer when Portuguese real estate is acquired for value. The taxable amount is generally the higher of the purchase/contract value and the property’s VPT (Valor Patrimonial Tributário). The rate then depends on the type of property, its use, value and, under current 2026 rules, in some cases the buyer’s residence position. The authoritative starting point is Finanças — Compra da casa (IMT e IS).

How progressive IMT actually works

For housing categories that use progressive bands, do not simply multiply the entire price by the highest marginal percentage shown in the table. The IMT table has marginal and average-rate mechanics. In practice, use the current official table/calculation rather than estimating from a headline percentage. Article 17 of the Código do IMT contains the current rates.

For 2026 on the mainland, ordinary own-and-permanent-home purchases start with a 0% band up to €106,346 and then move through progressive bands; higher values eventually move to single rates. Other housing has a different table. Rural property is generally taxed at 5%, while other urban property/other taxable acquisitions are generally 6.5%. Always classify the property and intended use correctly before calculating.

Important 2026 rule for non-resident buyers

Portugal changed the IMT rules in 2026. Article 17 now generally applies a 7.5% rate to a non-resident’s acquisition of urban residential property, without the ordinary reduction/exemption, subject to statutory exceptions. Those exceptions include a buyer who becomes Portuguese tax resident within two years and qualifying affordable residential letting; the law provides a route to request cancellation/refund of the difference where the later conditions are met. This is a major reason not to rely on an older online IMT calculator if you are buying while non-resident.

IMT Jovem / first-home relief for buyers aged 35 or under

There is enhanced IMT relief for a qualifying first acquisition of an urban home for the buyer’s own permanent residence by a person aged 35 or under who meets the statutory conditions. Current Article 9 excludes, among other cases, a buyer who owns or owned a residential urban property (or a qualifying partial right in one) at the time of purchase or during the previous three years. Where two people buy together, eligibility is assessed individually, so one buyer may qualify while the other does not. Check the current gov.pt IMT exemption service and Finanças before completion.

Where do I go to declare and pay IMT?

You deal with Autoridade Tributária / Finanças, not the Câmara Municipal. Despite the word “Municipal” in IMT, the practical declaration and payment process is through the Portuguese tax authority.

  • Online: sign in to Portal das Finanças and go to Cidadãos → Serviços → Modelo 1 do IMT → Preencher declaração.
  • e-balcão: open a new question and choose IMT/IS/IUC → IMT → Entrega Declaração Modelo.
  • In person: use a Serviço de Finanças, normally with an appointment. Finanças links its appointment service from the property-purchase guidance.

Submit the Modelo 1 IMT before the escritura/completion. Once it is processed, Finanças issues payment guides for IMT and the associated property-purchase stamp duty. At completion you must be able to show proof of payment or proof that an exemption applies. Finanças states that the payment documents are valid for the liquidation/payment period; do not generate them months too early and assume they remain usable indefinitely.

What information do you need for Modelo 1?

  • NIF and identification details for buyer(s) and seller(s).
  • Marital status, matrimonial-property regime and spouse NIF where applicable.
  • The property’s tax/matrix identification and VPT.
  • Purchase price and the right/share being acquired.
  • Correct property type and intended use.
  • The applicable exemption/benefit information if claiming one.

Your lawyer, solicitor, notary, Casa Pronta professional or other transaction professional may prepare the declaration in practice, but the buyer should still check the declared price, property, ownership share, residence/use category and any exemption. A mistake can change the tax substantially.

Stamp duty on the purchase

The property acquisition itself is also subject to Imposto do Selo at 0.8% on the same value base used for IMT. It is normally dealt with alongside the IMT declaration before completion. The official rate appears in item 1.1 of the General Stamp Duty Table.

If you finance the purchase, the loan itself can also attract stamp duty. That is separate from the 0.8% acquisition stamp duty, so a mortgaged buyer can see more than one stamp-duty item in the cost breakdown.

IMI: the annual property tax

IMI is different from IMT. It is an annual ownership tax based on VPT, not a percentage of what you paid for the house. The municipality sets its annual rate within the statutory limits. Finanças currently states rates of 0.3%–0.45% for ordinary urban property (with a possible 0.5% in specified circumstances) and 0.8% for rural property. You can check the IMI rate by municipality and year on Portal das Finanças.

The person shown as owner, usufructuary or surface-right holder in the tax matrix on 31 December is generally liable for that year’s IMI. Current payment scheduling is: up to €100, one payment in May; over €100 up to €500, May and November; over €500, May, August and November. Payment can be made through the channels on the tax notice, including Multibanco/home banking, and direct debit can be activated through Portal das Finanças.

AIMI: additional property tax

AIMI is an additional annual tax that can apply to the combined VPT of qualifying residential urban properties and building land. For individuals there is generally a €600,000 deduction before AIMI is calculated; qualifying married/unmarried partners who opt for joint AIMI taxation can generally use a €1.2 million combined deduction. Rates then rise with the taxable amount. Do not confuse a property’s market price with the VPT used for AIMI. See Finanças — IMI and AIMI.

Other costs to budget for

  • Casa Pronta/notary/solicitor/registration costs: depend on the completion route and acts required.
  • Lawyer or solicitor: agree scope and fee in advance; independent legal due diligence is separate from the estate agent’s role.
  • Mortgage costs: valuation, bank charges where permitted, mortgage registration, insurance and loan stamp duty can add to cash needed at completion.
  • Condominium: apartment owners should budget for regular quotas and possible extraordinary works.
  • Insurance: particularly relevant with a mortgage, but sensible to price even for cash purchases.
  • Utilities and moving: contracts, deposits where applicable, removals and initial repairs/furnishing.
  • Future maintenance: especially important for detached, older and rural properties.

Do not calculate your cash requirement from the purchase price alone

Before signing a CPCV, build a completion budget containing: purchase-price balance + IMT + 0.8% acquisition stamp duty + any loan stamp duty + completion/registration + professional fees + mortgage cash contribution + immediate property costs. Keep a buffer. A bank’s maximum loan percentage does not finance every tax and fee, and a low valuation can increase your required cash contribution.

Practical checklist before completion

  • Confirm whether the purchase is own permanent residence, other housing, rural property or another category.
  • Confirm your tax-residence position under the 2026 IMT rules.
  • Check whether IMT Jovem or another exemption can apply.
  • Compare purchase price with the current VPT.
  • Prepare and verify Modelo 1 IMT.
  • Obtain the IMT and stamp-duty payment guides.
  • Pay in time for completion and retain proof.
  • Budget separately for mortgage-related stamp duty if financed.
  • Check the property’s municipal IMI rate and VPT for annual ownership cost.
  • Check whether your total qualifying VPT could bring AIMI into play.
  • Add registration, professional, condominium, insurance and immediate maintenance costs.

Official links

Last verified: 2 October 2026. Property-tax thresholds and rates can change with the State Budget or other legislation. The 2026 non-resident IMT rule is particularly important: use current Finanças guidance and the current Código do IMT rather than an older expat calculator.