Have you ever dreamed of moving to Portugal? Well, you can start by finding a place you can call home and buying a property in the country. But before making the big move, it's essential to understand how real estate taxes work in Portugal.
With house prices gaining momentum due to limited supply, now is the right time to make a move. So, the big question is: how much taxes do you have to pay for buying a property in Portugal? You can find all the answers in our complete guide.
Overview of Real Estate Taxes in Portugal
Portuguese nationals and foreigners who buy or own properties in Portugal have to pay real estate taxes. There are three types of real estate taxes in Portugal:
- Transfer Tax (IMT): Also known as the real estate sales tax, the IMT is paid when someone buys a property and can be as high as 8%.
- Property Tax (IMI): The IMI is a municipal tax that is paid annually by the property owner, costing between 0,3% and 0,8%.
- Stamp Duty (Imposto do Selo): The Imposto do Selo is a tax on Portuguese fiscal documents that must be paid when someone buys a property.
Portugal's Real Estate Transfer Tax (IMT)
Every time someone buys a property in Portugal, a transfer tax is due. This tax is known as the Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) and costs anywhere between 2% and 8%, depending on the value of the property:
| Property value | Fee |
| €101,917 or less | 0% (exempt) |
| €101,917 to €139,412 | 2% |
| €139,412 to €190,086 | 5% |
| €190,086 to €316,772 | 7% |
| €316,772 to €607,528 | 8% |
| €607,528 to €1,102,920 | 6% |
| €1,102,920 or more | 7,5% |
Real estate transfer tax for main residency (Portugal)
To know exactly how much you have to pay for buying a house in Portugal, consider using an IMT Tax Calculator. The table can be different depending on the destination of the property.
If you buy a property that costs €101,917 or less, you are exempt from paying property tax as long as the property qualifies as your main residence. If the property is your secondary residence, you will have to pay a 1% transfer tax.
If you have bought a property in Madeira or the Azores, the exemption rules are slightly different, applying to houses with a value of up to €130,326. Further transfer tax exemptions may apply if:
- You're buying the property to resell it, have resold other properties in the past two years, and sell the property up to three years after the acquisition;
- The property is meant to be used for municipal, cultural, or diplomatic purposes;
- The property's buyer is the Portuguese Government, an insolvent company, a humanitarian institution, or a religious institution.
Portuguese nationals and foreigners with 35 years or less may also be exempted from paying real estate transfer taxes. In August 2024, the Portuguese Government launched a scheme that exempts property buyers under the age of 35 from paying transfer and stamp taxes. The only condition? The property value cannot be higher than €324,058.
If you're looking to finance a Portuguese home, but don't know where to start, consider CAFIMO as your expert mortgage broker. You can also use our Portuguese mortgage calculator to get a better idea of how much money you can borrow.
Portuguese Property Tax (IMI)
The Portuguese property tax, or Imposto Municipal sobre Imóveis (IMI) is a tax that you have to pay every year just for owning a property in Portugal. The tax applies to each property individually and costs either 0,8% or 0,3%-0,45%.
The 0,8% fee applies to commercial properties, and the 0,3%-0,45% fee applies to residential properties. But why do the fees for residential properties vary between 0,3% and 0,45%?
Since the IMI is a municipal tax, every Portuguese parish is authorized to set its own property tax. While most parishes charge the minimum 0,3% fee, some municipalities have set 0,45% taxes for 2025.
To see how much the property tax costs in any given Portuguese parish, just visit this page and select the municipality using the drop-down menu at the bottom.
Stamp Duty (Imposto do Selo)
In Portugal, the stamp duty or Imposto do Selo is a tax that applies to various types of fiscal and legal documents, including the contract you have to sign when you buy a house. In the case of real estate transfers, the Imposto do Selo has a cost of 0,8% per acquisition.
Portugal's Property Rent Taxes
Citizens who put a home up for rent in Portugal must also pay taxes, and these are different for residents and non-residents. Unlike real estate taxes, Portugal's rent taxes apply to the property owner's rental income and not the property value. Non-residents have to pay a fixed fee of 25%, whereas residents can pay anywhere between 14,5% and 48% (depending on their rental income):
| Total incomes | Tax rate based on total incomes |
| €7,091 or less | 14,5% |
| €7,091 to €10,700 | 23% |
| €10,700 to €20,261 | 28,5% |
| €20,261 to €25,000 | 35% |
| €25,000 to €36,856 | 37% |
| €36,856 to €80,640 | 45% |
| €80,640 or more | 48% |
Portugal property rent tax
Every time a rental contract is signed, the property owner must also pay the corresponding stamp duty tax, costing 10% of the rental amount.
Need Some Help?
Whether you're trying to relocate to Portugal or simply explore the country's booming real estate market, one thing's certain: you're going to need some professional help!
With CAFIMO as your Portuguese mortgage broker, you can easily navigate local norms and regulations, access the best mortgage rates, and find the perfect house in Portugal.
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