House buying in Portugal - associated Taxes

    What is the Municipal Tax on Real Estate Broadcasts - IMT?

    Are You considering in buy a house in Portugal, know what you can expect, what you will have to bear the taxes, such as the Municipal Tax on Real Estate (IMT), the Stamp Tax calculated on the price of the house and The stamp duty calculated on the money lent by the bank. And after being owner you will have to pay taxes and fees like the Municipal Property Tax (IMI).

    The IMT is due whenever there is a purchase of a property. The calculation of this tax varies according to the type of property (urban or rural), the location (Continent or Autonomous Regions) and the purpose (Permanent or Secondary Own Housing).

    To calculate the IMT, two values must be taken into account:

    1. The property tax value of the property;
    2. The amount declared in the deed of purchase and sale.

    It will be on the higher of these two amounts that a rate fixed annually in the State Budget will be applied.

    The IMT must be settled before the execution of the deed of sale.

    Is there any exemption in IMT?

    Yes, there is an exemption from IMT when the property is exclusively destined to own and permanent housing, and the property has a value up to € 92,407, mainland and €115,509,00, in the Autonomous Regions. So, just above these values, one pays IMT. The updated IMT table can be found in the Finance Portal.

    And the Stamp Tax?

    Stamp duty is due on the transaction is on the purchase and sale, which corresponds to a rate of 0.8% on the acquisition value, which appears in the Deed.

    What about IMI? What is and when is it due?

    IMI is a tax that is paid annually and is calculated based on the tax net worth of real estate located in national territory, to which a tax is applied.

    It is up to the municipalities where the property is located annually to define the rates, within a range defined by the Municipal Property Tax Code (CIMI).

    Currently, this range is between 0.3% and 0.5% for urban buildings already assessed under the IMI Code, and between 0.5% and 0.8% for other urban buildings. It is in April that IMI is paid or begins to be paid. If the invoice is up to 250 € has to be paid in one go, if it is up to 500 € you can pay twice, only if it is more than 500 € you can pay three times

    Is it possible to have IMI exemption?

    It is possible to have access to the exemption of the IMI payment but it is necessary that it is destined for own and permanent housing, and the property tax value of the property does not exceed 125 thousand euros.

    In addition, it is necessary that the household has a taxable income, for the purpose of IRS, less than 153,300 euros. If they meet these criteria they will be granted an exemption for a period of 3 years.

    The IMI rates applied per year and per municipality can be found in the Finance Portal.