Portugal Property Purchase Taxes: IMT, Stamp Duty, IMI & AIMI

Property tax in Portugal comes in two moments, not one: taxes you pay when you buy, and taxes you pay every year while you hold. Getting the first wrong can blow a hole in a purchase budget; getting the second wrong turns a dream home into an annual surprise. Here is how both work, verified against the tax codes.

When you buy: IMT (the transfer tax)

IMT — Imposto Municipal sobre as Transmissões Onerosas de Imóveis — is the property transfer tax, paid before the deed. Its structure depends on what you are buying:

• Your own permanent home: IMT is progressive by brackets, starting at 0% up to a first threshold and rising in steps to a top marginal rate. The brackets are revised every year with the State Budget, so we deliberately do not freeze the euro figures here — always check the current-year table or the official simulator before you calculate.
• Rural property: a flat 5% (CIMT Article 17).
• Other urban property and other acquisitions: a flat 6.5% (CIMT Article 17).

When you buy: Stamp Duty

On top of IMT, the onerous acquisition of real estate carries Stamp Duty (Imposto do Selo) of 0.8% on the value (General Table, item 1.1). It is small next to IMT but easy to forget when budgeting — and, like IMT, it is due before the deed.

While you hold: IMI (annual municipal tax)

Every year you own property you pay IMI on its tax value (VPT). The rate is set by each municipality within a legal band: 0.3% to 0.45% for urban property, and 0.8% for rural property (CIMI Article 112). Because the exact rate is a municipal decision, two identical houses in different councils can carry different annual bills — check the rate for the specific municipality.

While you hold: AIMI (the "wealth" top-up)

AIMI is an additional tax that only bites above a threshold. Individuals (and undivided inheritances) get a deduction of €600,000 from the taxable base before AIMI applies (CIMI Article 135-C). Above that, the marginal rates for individuals run 0.7% up to €1M, 1% between €1M and €2M, and 1.5% above €2M; corporate owners pay a flat 0.4% (CIMI Article 135-F). For most single-home buyers AIMI never applies; for larger portfolios it matters.

Two numbers to carry into any purchase

Before signing, budget for IMT + 0.8% Stamp Duty on top of the price, and estimate the recurring IMI at your municipality's rate. If your holdings will exceed €600,000 in tax value, factor AIMI too. The official simulator on the Portal das Finanças gives the exact IMT for your case, using the current-year brackets.

FAQ

Is IMT a flat rate?

Not for your own permanent home — there it is progressive by brackets, starting at 0%. Rural property is a flat 5% and other urban property a flat 6.5%.

How much is stamp duty on a Portuguese property purchase?

0.8% of the value, on top of IMT, due before the deed (Stamp Duty General Table, item 1.1).

Who pays AIMI?

Owners whose total property tax value exceeds the €600,000 personal allowance; individual marginal rates run 0.7%–1.5%. Most single-home owners are below the threshold.

Sources