Thinking about buying your dream home under the Portuguese sun? It's an exciting journey! But before you get the keys, you'll need to navigate a few local taxes. The most important one is the IMT (Property Transfer Tax).
We know tax talk isn’t the most fun part of buying a house, so we’ve stripped away the legal jargon to break down exactly what you need to know for 2026, whether you are a local resident, moving here for the first time, or looking for a holiday home.
IMT stands for Imposto Municipal sobre a Transmissão Onerosa de Imóveis. Simply put, it’s a property transfer tax you must pay when buying real estate in Portugal. It is your responsibility as the buyer to pay this tax before you sign the final deed at the notary.
If you are an international buyer (meaning you are not currently a registered tax resident in Portugal), there’s a brand-new rule you need to budget for.
Starting in 2026, non-residents are subject to a flat IMT rate of 7.5% when purchasing an urban residential property.
Yes! The Portuguese government offers a way to get a significant portion of that money back. You can request a refund for the difference between the 7.5% flat rate and the lower standard resident rates if you meet one of these conditions:
How the refund works in practice: You pay the 7.5% upfront. Once you officially relocate and get your tax residency, you apply for a refund. Using our €300,000 example: Once you become a resident, your tax is recalculated at the lower resident rate (around €10,542). This means you would get a refund of almost €12,000!
If you are already a tax resident in Portugal when purchasing a property in Portugal, the 7.5% flat rate does not apply to you. Instead, your IMT is calculated on a progressive scale depending on the price of the property and its purpose.
There are two main categories for residents:
Want to see exactly what the rates are in different areas? IMT rates can vary slightly depending on where you buy. We’ve put together an interactive map so you can easily check the specific rates.
👉 Click here to view the IMT rates and run a simulation.
Are you 35 or younger and an official Portuguese resident? You might not have to pay IMT at all! Under the IMT Jovem regime for 2026, young buyers purchasing their first permanent home are completely exempt from this tax on properties up to €330,539. For properties up to €660,982, you only pay tax on the amount exceeding the initial bracket.
It's worth noting that the type of property you buy changes the tax rules:
Sometimes, a property is sold with furniture included. You can legally deduct a realistic value of the furniture from the property price, which lowers your immediate IMT tax bill. But a quick word of caution: A lower declared purchase price today means a higher taxable profit when you sell the house later, potentially leading to higher Capital Gains Tax down the road. Always consult with a professional before making this decision!
While IMT is the biggest transaction expense, buyers should also budget for:
Navigating foreign tax laws, upfront payments, progressive brackets, and refund applications can feel overwhelming. But you don't have to do it alone.
At Divine Home, we specialize in helping both international buyers and local residents seamlessly transition into their new homes. We work alongside trusted legal and fiscal experts to ensure you get the best advice, understand your true budget, and never miss out on a potential refund or exemption.
Any questions about the above information? Or ready to find your perfect Portuguese property? Contact us today!
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