IMT - Portuguese Property Transfer Tax in 2026

The IMT ("Imposto Municipal sobre a Transmissão Onerosa de Imóveis") is a property transfer tax that must be paid when purchasing real estate in mainland Portugal. It is the buyer's responsibility to pay this tax before the transfer of ownership happens at the notary. Notaries will require proof of payment before completing the transaction.

How is the IMT Calculated?

To determine the Portuguese IMT, you need to consider:

1. The purchase price (or the Valor Patrimonial Tributário - VPT, whichever is higher);
2. The registered use of the property (habitation, rustic, or other uses like commercial/touristic);
3. The buyer's tax residency status (under 2026 rules, this heavily impacts the initial tax rate);
4. The age of the buyer (due to youth exemptions).

Property Types and IMT Rates

Understanding the type of property is crucial for IMT calculation. The main property classifications are:

• Urban property for housing: These are buildings designated for "habitation" ("Habitação"), as indicated on the property's usage license and cadastral registration. The IMT is calculated using the updated 2025 IMT table for mainland Portugal.
• Agricultural property: Classified as "rústica," agricultural land is taxed at a flat 5% rate.
• Other urban real estate: Commercial properties, building plots, and properties with a touristic license (such as resort homes) are subject to a fixed IMT rate of 6.5%.

New IMT Rule for Non-Residents (DL 97/2026)

Following the enactment of Decreto-Lei n.º 97/2026, a new Article 17, paragraph 10, was added to the CIMT.

By default, non-resident buyers purchasing urban residential properties or fractions are subject to a flat IMT rate of 7.5%, without any automatic progressive reductions or exemptions.

However, the law allows the buyer to retroactively apply for a refund of the difference between the 7.5% flat rate and the standard progressive rates if they meet one of three specific exceptions:

1. The buyer was already a tax resident in Portugal on the date of acquisition.
2. The buyer becomes a tax resident in Portugal within 2 years from the acquisition date.
3. The property is allocated to affordable residential rental (arrendamento a preços moderados) and is effectively rented for at least 36 months (consecutive or not) within the first 5 years post-acquisition.

How the exception works in practice: The non-resident buyer pays the 7.5% upfront at the time of purchase. Once the criteria for one of the exceptions are met within the legal timeframe, the taxpayer can request the Portuguese Tax Authority (Autoridade Tributária) to cancel and refund the excess tax paid.

The "IMT Jovem" Exemption (Under 35)

If you are a resident and 35 years old or younger, you might be exempt from paying IMT and Stamp Duty under the IMT Jovem regime. To qualify, this must be your first purchase of a primary residence (Habitação Própria e Permanente), and you cannot have owned any residential property in the last 3 years.

In 2026, the updated thresholds are:

• Total Exemption: For properties up to €330,539.
• Partial Exemption: For properties between €330,539 and €660,982 (you only pay the 8% marginal tax rate on the amount exceeding €330,539).
• No Exemption: Properties over €660,982 do not qualify.

IMT Table for Mainland Portugal (Residents)

The following table applies to IMT calculations for residents and properties in mainland Portugal:

Own Permanent Residence (Habitação Própria e Permanente)

Second Home or Buy-to-Let (Habitação Secundária)

IMT Calculation Examples

Example 1: Buying a Second Home (Resident)

A tax resident purchases a detached house in mainland Portugal for €300,000 as a second home. The property has a habitation license and is urban land.

Using the 2026 second home table, the IMT calculation is:

IMT = (€300,000 x 7%) - €9,394.50 = €11,605.50

Example 2: Non-Resident Purchasing Residential Property (DL 97/2026)

A non-resident purchases the exact same residential property for €300,000.

• Upfront payment at notary: The flat 7.5% rate applies.
  Initial IMT Paid = €300,000 x 7.5% = €22,500
  
  
• Scenario A (No Exception met): If the buyer remains a non-resident and does not rent the property under the affordable housing programme, the total tax cost stays at €22,500.
  
  
• Scenario B (Exception met): If the buyer relocates and becomes a Portuguese tax resident within 2 years, they can claim a refund. The tax is recalculated using the progressive scale for permanent residence:
  Recalculated IMT = (€300,000 x 7%) - €10,457.96 = €10,542.04
  Refund Amount = €22,500 - €10,542.04 = €11,957.96

Important Considerations

Furniture and Inventory

If a property is sold with furniture, a realistic portion of the price can be allocated to the inventory. Since IMT is only calculated on the property value, this can lower your immediate tax burden.

However, this allocation must be strictly justified. When you decide to sell the property in the future, your capital gains tax (Mais-valias) will be calculated based on the purchase price excluding the furniture. A lower declared property purchase price today means a higher taxable capital gain tomorrow. Read more on capital gains in our dedicated article.

Other Purchase Costs

IMT is not the only transaction cost when buying property in Portugal. Buyers should also budget for:

• Stamp Duty (Imposto do Selo): A flat 0.8% on the purchase price.
• Notary & Registration fees: Official fees to register the deed.
• Legal Fees: Lawyer or solicitor representation.

Read more about purchase costs when Buying property in Portugal.

Key Takeaways

The updated 2026 IMT rules introduce significant changes, particularly for international buyers. While residents see a standard 2% correction in tax brackets and young buyers enjoy substantial exemptions, non-residents now face a 7.5% upfront flat rate unless they commit to residency or the affordable rental market. Navigating these timelines and refund applications makes professional tax advice more valuable than ever.

At Divine Home, we specialize in helping international buyers navigate these complexities. We work alongside legal and fiscal experts to ensure our clients—whether they are investors or families relocating—are fully informed and prepared for every step of the purchase process.