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Property Purchase Taxes in Portugal

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Essential Documents for Purchasing a property in Portugal

Paying for your Property in Portugal

Fees & Charges When Purchasing a Property

Property Taxes in Portugal

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Rates Exemption in Portugal

Inheritance Tax in Portugal

 
 
 

When buying a property in Portugal you have to pay purchase taxes for properties over 90,418€. These are calculated on a per cent basis, which are on a sliding scale relating to the value of the property you wish to purchase. These rates are usually amended each year inline with inflation and although new rates and a new system was introduced in April 2010, these proved too complex to calculate. Therefore amended rates with precise deductions have been now calculated (May 2010).

 

Resale properties - including ruins, land, old houses - are subject to Imposto Municipal Sobre as Transmissυes (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.

 

If the property is your sole residence then the taxes are levied as follows:

Primary Residence
  under 90,418€  0%
  90,418€ -  123,682€ 2% minus 1,808.36€
  123,682€ - 168,638€ 5% minus 5,518.82€
  168,638€ - 281,030€ 7% minus 8,891.58€
  281,030€ -  561,960€ 8% minus 11,701.88€
  Over  561,960€   6%
If the property you are purchasing is a second property such as a holiday home then the taxes are calculated as follows:
Second (Holiday) Home
  under 90,418€ 1%
  90,418€ -  123,682€ 2% minus 904.18€
  123,682€ - 168,638€ 5% minus 4,614.64€
  168,638€ - 281,030€ 7% minus 7,987.40€
  281,030€ -  538,978€ 8% minus 10,797.70€
  Over  538,978€  = 6%

Agricultural (rustico) is charged at the flat rate of 5%, whereas Urban land (urbano) is charged at a rate of 6.5%.

If you are unsure how much the IVA or IMT will be, it is advisable to check with the local Finanηas before you enter into a Promessa Contract.

*The above figures were current as of May 2010.
 
 
 
 
 
 
 

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