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Property Taxes
Stamp Duty Tax
Property Transfer Tax (IMT)
Council Tax (IMI)
When purchasing a property in Portugal , it is important to be aware of the various taxes you will have to pay. Stamp Duty Tax
This tax is payable by the buyer on all deeds, contracts and financial transactions, charged on the value of each taxable deed or operation at a tax rate which varies according to the type of deed. On a property, this is assessed at 0.8% of the pur chase price.
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Property Transfer Tax (IMT)
Formerly known as SISA, this was replaced in January 2004 by IMT.
With effect from 1st January 2007 the rates applicable depend on whether the property is designated as a permanent residence or as a second/holiday home.
As a permanent residence , the following table applies:
| Value of Property |
Applicable Rate |
Deduction |
| Up to €85,500 |
0% |
Nil |
| €85,500 - €117,200 |
2% |
€1,710 |
| €117,200 - €159,800 |
5% |
€5,226 |
| €159,800 - €266,400 |
7% |
€8,422 |
| €266,400 - €532,700 |
8% |
€11,086 |
| Over €532,700 |
6% |
Nil |
As an example, if the purchase price is €120,000, calculate as follows:
€120,000 x 5% = €6,000 less €5,226 = €774
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As a second or holiday home , the following table applies:
| Value of Property |
Applicable Rate |
Deduction |
| Up to €85,500 |
1% |
Nil |
| €85,500 - €117,200 |
2% |
€855 |
| €117,200 - €159,800 |
5% |
€4,371 |
| €159,800 - €266,400 |
7% |
€7,567 |
| €266,400 - €532,700 |
8% |
€10,231 |
| Over €532,700 |
6% |
Nil |
As an example, if the purchase price is €120,000, calculate as follows:
€120,000 x 5% = €6,000 less €4,371 = €1,629
Exceptions:
- Other urban properties, such as building plots or land to build an urban dwelling: 6.5%
- Rustic property (agricultural land): 5.0%
- When a company registered in one of the black-listed jurisdictions acquires a property in Portugal : a punitive tax rate of 15% applies. When a company registered in a white-listed jurisdiction acquires a property, the same rates apply as shown in the tables above)
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Council Tax (IMI)
This is an annual tax on the property payable to the local authority (similar to Council Tax in the UK). The rates are assessed by the local authority and declared each year. As a guideline, your annual property tax may be charged at up to 0.72% of the market value. Assessment is based on the following criteria:
- Construction area and implementation
- Usage
- Age of property
- Location
- Quality of construction
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