Taxes when buying real estate in Portugal
There are two taxes when buying real estate in Portugal. We have the IMT (Municipal Tax Transmissions) and the IS (IS: Imposto de selo / Timbre Impôt).
The amount of these two taxes is exercised on the purchase price of the property or on its asset value if it is higher than the negotiated price. They are the responsibility of the purchaser. The same is true for the payment of the Public Deed and the registration of the property.
IMT Calculation Table (Municipal Tax on Transmissions)
Calculation of LMI for a principal residence payable in the event of purchase of an apartment, house in Portugal:
| Price of the property: | Tax: | Value to deduct: |
|---|---|---|
| Until € 92.407 | 0%* | 0%* |
| + de € 92.407 at 126.403 | 2% | 0,5379% |
| + de € 126.403 at 172.348 | 5% | 1,7274% |
| + de € 172.348 at 287.213 | 7% | 3,8361% |
| + de € 287.213 at 550.823 | 8% | – |
| + de € 550.823 until 1.000.000 | unique 6% | unique 6% |
| + de € 1.000.000 | unique 7,5% | unique 7,5% |
*Real estate up to € 92,407 is exempt from IMT.
Calculation of LMI for a second home payable in the event of purchase
of an apartment, house in Portugal:
| Price of the property: | Tax: | Value to deduct: |
|---|---|---|
| Until € 92.407 | 1% | 1% |
| + de € 92.407 at 126.403 | 2% | 1,2689% |
| + de € 126.403 at 172.348 | 5% | 2,2689% |
| + de € 172.348 at 287.213 | 7% | 4,1578% |
| + de € 287.213 at 550.823 | 8% | – |
| + de € 550.823 until 1.000.000 | unique 6% | unique 6% |
| + de € 1.000.000 | unique 7,5% | unique 7,5% |
The calculation is as follows:
Price of the property X Tax – Value to deduct = IMT
Example:
When purchasing a main residence for € 250,000, the LMI is as follows:
1st part € 172,348 X 1.7274% = € 2,977.14
2nd part (€ 250,000 – € 172,348) X 7% = € 5,435.64
IMT payable = € 2,977.14 + € 5,435.64 = € 8,412.78
IS: Imposto de Selo (Tax Stamp)
the calculation is as follows:
€ 200,000.00 X 0.8% = € 1,600.00 of Imposto de Selo
Property registration
After having signed the Public Act to the Notary (or Solicitadore (Jurist) or Casa Pronta), the latter must be registered with the conservatory and finance which will confirm the final sale of the property.
The cost is € 250.00
*All the information and values mentioned are subject to alteration in accordance with legal updates.
