Property Transfer Tax
Tax Basis
Property Transfer Tax (“IMT – Imposto Municipal sobre a Transmissão Onerosa de Imóveis”) is a municipal tax levied on the transfer for consideration of real estate located in the Portuguese territory. Such transfers may also be subject to Stamp Duty. The acquisition of more than 75% of the share capital of a company incorporated as “sociedade por quotas” (as well as of a privately placed closed-end Real Estate Investment Funds), which owns real estate located in Portugal, is also subject to IMT.
| Description | Rates (%) |
|---|---|
| Rural property | 5 |
| Other urban properties and other acquisitions for consideration | 6.5 |
| The acquirer is a tax resident in an offshores (except individuals) | 10 |
Urban property or autonomous fraction of urban property exclusively intended to permanent place of residence:
| Value (€) | Marginal | Medium * |
|---|---|---|
| Up to 92,407 | 0 | 0 |
| + 92,407 until 126,403 | 2 | 0,5379 |
| + 126,403 until 172,348 | 5 | 17,274 |
| + 172.348 until 287.213 | 7 | 38,361 |
| + 287,213 until 574,323 | 8 | – |
| 574,323 | 6 (single rate) | |
* In the upper limit of the scale
Urban property or autonomous fraction of urban property exclusively intended to residence (non-permanent):
| Value (€) | Marginal | Medium * |
|---|---|---|
| Up to 92,407 | 1 | 1 |
| + 92,407 until 126,403 | 2 | 12,689 |
| + 126,403 until 172,348 | 5 | 22,636 |
| + 172.348 until 287.213 | 7 | 41,578 |
| + 287,213 until 550,836 | 8 | – |
| 550,836 | 6 (single rate) | |
* In the upper limit of the scale
Exemptions
Some facts are exempt from IMT, namely the ones mentioned below. Exemption may depend on certain requirements:
- acquisition of properties for resale by Real Estate Trading companies;
- acquisition of properties intended for urban rehabilitation;
- restructuring operations or cooperation arrangements;
- acquisition of buildings classified as of national/public/municipal interest;
- exemption or reduction of the IMT rate, regarding the acquisition of property that constitute eligible investment under Investment Promotion Tax Regime (RFAI).
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