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IMT & STAMP DUTY IN PORTUGAL

Posted by Valerie Becks on mai 25, 2020
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There has been some confusion among buyers, over the taxes you pay when purchasing a property in Portugal.

Portugal has long had incentives in place to encourage people to move to and invest in Portugal and part of those incentives is to provide a discounted tax rate. The tables below show the IMT and stamp duty you will pay. Figures up to date as of time of writing (May 25, 2020).

The first is IMT (transfer tax). Below are the tables to help you calculate the tax you will pay.

This first table applies if you are purchasing a permanent home:

Value of Property Liable for IMTTax PercentageDeductible
Up to 92,40700
92,407 – 126,40321,848.14
126,403 – 172,34855,640.23
172,348 – 287,21379,097.19
287,213 – 574,323811959.32
574,323 -1,000,00060
Greater than 1,000,0007.50

The second table applies if you are buying a second property or a holiday home in Portugal:

Value of Property Liable for IMTTax PercentageDeductible
Up to 92,4071
92,407 – 126,4032924.07
126,403 – 172,34854,716.16
172,348 – 287,21378,163.12
287,213 – 550,836811,035.25
550,836 – 1,000,0006
Higher than 1,000,0007.5

For example. If you were purchasing a home for permanent habitation the first table would apply.

Assuming a purchase price of 195,000€ the calculation would be as follows:
195,000€ x 7% = 13,650€ less the deductible of 9,097.19.
13,650€ – 9,097.19€ = 4,512.81

So the amount of IMT you would pay on this purchase would be 4,512.81

On top of this you would also pay a stamp duty tax of 0.8% which is the same for all.

The taxes on this property would therefore be;

IMT 9815.90€ plus stamp duty of 1,480€ for a total tax of 11,293.90€

As a last note – if you budget 10%% of the purchase price for costs, this will, in the majority of cases, more than cover the taxes, notary fees, registration, legal fees.

**Figures correct at the time of writing – June 2019

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