Stamp Duty (Imposto do Selo)

What Is It?

Stamp Duty (Imposto do Selo) is one of the oldest taxes in the Portuguese tax system. It applies to a wide range of legal acts, contracts, and official documents.

In real estate transactions, it typically arises in two separate moments on the day of completion (Escritura).

What Is It For / Why Is It Important?

Legal Validation of the Transaction
Payment of Stamp Duty is mandatory to formalise both:

• the transfer of property ownership, and

• the mortgage agreement (contrato de mútuo), when financing is involved.

State Revenue
Unlike IMT, which is paid to municipalities, Stamp Duty is collected directly by the Portuguese central government.

How Much Does It Cost?

Two main Stamp Duty charges usually apply:

Stamp Duty on Property Acquisition (IS sobre a Aquisição)

Rate:
0.8%

Applied to:
The purchase price or the VPT (Valor Patrimonial Tributário), whichever is higher.

Example:
For a €200,000 property → €1,600 Stamp Duty.

Stamp Duty on Mortgage Financing (IS sobre o Crédito)

Applies only if bank financing is used.

Rates:

• 0.5% — loans with a term between 1 and 5 years

• 0.6% — loans exceeding 5 years (standard for residential mortgages)

Applied to:
The amount financed by the bank.

Example:
Loan of €180,000 → €1,080 Stamp Duty.

Exemptions

Young Buyer Exemption (Isenção Jovem)
Buyers aged up to 35 purchasing their first Primary Residence (Habitação Própria e Permanente — HPP) may benefit from exemption from Stamp Duty on acquisition, subject to property value limits aligned with IMT thresholds (approximately €316,000).

Rental Agreements
Stamp Duty also applies to rental contracts (typically equivalent to 10% of one month’s rent), paid by the landlord.

Where and When Is It Paid?

Where:
Through the Portal das Finanças or via Multibanco using the issued payment reference.

When:

• Stamp Duty on acquisition is paid before the Escritura, together with IMT.

• Stamp Duty on the mortgage is usually charged by the bank directly on completion day when loan funds are released.

Total Cost Example

If purchasing a property for €250,000 with a mortgage of €225,000:

• Acquisition Stamp Duty (0.8%): €2,000

• Mortgage Stamp Duty (0.6%): €1,350

➡ Total Stamp Duty payable: €3,350