IMT — Municipal Property Transfer Tax

What is it?
IMT is the property transfer tax paid when purchasing real estate in Portugal. It applies whenever ownership of a property is officially transferred from the seller to the buyer.

Why is it important?

Legal requirement
Proof of IMT payment is mandatory. Without it, the notary or legal representative cannot complete the property deed.

Municipal funding
Although paid through the tax system, IMT is a major source of revenue for local municipalities, helping fund public services and infrastructure.

How much does it cost?

IMT is not a fixed amount. It is calculated using annual tax brackets and depends on several factors:

• Property value — calculated on the higher of the purchase price or the taxable property value (VPT)

• Location — Mainland Portugal or the Islands (Azores and Madeira have different tables)

• Property type — urban property (house/apartment) or rural land

• Purpose of purchase — primary residence benefits from lower rates than second homes or investment properties

Main exemptions

• Lower-value properties — primary residences up to approximately €115,000 (reference value for 2024/2025) may be exempt

• Young buyer exemption — buyers up to age 35 may qualify for IMT exemption on their first primary residence, up to the 4th IMT bracket (around €316,000)

• Urban rehabilitation — properties purchased for approved urban renovation projects may qualify for exemption

When and where is it paid?

• When: Before signing the property deed

• Where: Through the Portuguese Tax Authority portal or at a tax office, with payment typically made via bank transfer or Multibanco

Example (Mainland Portugal — Primary Residence)