IMT - Portuguese Property Transfer Tax in 2025

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 (excluding the value of any included inventory);
2. The registered use of the property (habitation, rustic, other like commercial or touristic);
3. Whether the property is being purchased as a primary residence or a second home.

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%.

IMT Table for Mainland Portugal in 2025

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

IMT Calculation Examples

Example 1: Buying a Second Home

You purchase a detached house in mainland Portugal for €300,000 as a second home. The property has a habitation license, and the land is solely classified as urban. The IMT calculation is:

€ 300,000 x 8% - € 12,450.89 = € 11,549.11 payable (approximately 3,8% of the purchase price).

Example 2: Mixed Urban and Agricultural Property

If you purchase a property for permanent habitation for €300,000, with €260,000 classified as urban and €40,000 as rustic land, the IMT is calculated separately:

• Urban part: €260,000 x 7% - € 9,210.31 = € 8,989.69
• Rustic part: €40,000 x 5% = €2,000
• Total IMT payable: € 10,989.69 (approximately 3,6% of the purchase price)

Important Considerations

• Furniture and Inventory: If a property is sold with furniture, a reasonable portion of the price can be allocated to the inventory. Since IMT is only calculated on the property value, this can lower the tax burden. However, this allocation must be justified, as it affects future capital gains tax calculations.

Other Purchase Costs

IMT is not the only tax to be paid when purchasing property in Portugal. Besides IMT, the buyer must also pay Stamp Duty (Imposto do Selo), Notary & Registration fees and Lawyers fees. 

Read more about purchase costs when Buying property in Portugal. 

note: if you buy a property in Portugal inclusive of furniture/inventory, you can contribute a realistic value of the purchase price to the furniture/inventory. A benefit is that this value is not part of the calculation for the IMT. However the value has to be a realistic value for the inventory that you purchase. Also, it is important it is a realistic value as in the future, when you decide to sell, you pay capital gains over the difference of (future) sales price minues previous purchase price. When attributing a certain value to furniture, the purchase price exclusive of furniture is the price used to calculate the capital gains payment. Read more on capital gains in this article. 

Key Takeaways

Understanding IMT is crucial for property buyers in Portugal. Knowing how it’s calculated and what rates apply can help you prepare for the associated costs. If you have questions about your specific situation, consulting a professional can provide tailored advice.