The property price is not the total cost — taxes count. Buying and holding property involves distinct taxes, some on acquisition, others on ownership. Knowing them avoids surprises and allows planning.
On purchase: IMT
The Municipal Property Transfer Tax (IMT) is levied on acquisition, calculated on the higher of two values — the price or the taxable asset value (VPT) — at progressive rates that vary with the type and intended use of the property. There are significant exemptions and reductions, such as IMT Jovem on a first home.
On purchase: Stamp Duty
Acquisition also carries Stamp Duty on the transfer, at its own rate, and, where there is a mortgage, on the financing too. These are costs to factor into the transaction budget.
On ownership: IMI
The Municipal Property Tax (IMI) is annual and levied on the VPT, at a rate set by each municipality within legal ranges. There are temporary exemptions — for example, for lower-value own homes — and surcharges, notably for vacant properties.
On ownership: AIMI
The Additional to IMI (AIMI) is levied on the sum of the VPTs of residential properties and building land held by each owner, above a threshold, acting as a tax on higher-value real estate wealth.
Before buying, do the full sums
Adding IMT, Stamp Duty and the annual IMI and AIMI costs to the price, and confirming the applicable exemptions, gives you the real cost of the transaction — before signing.
Buying or already holding property? Paulo Silva Silva, Lawyer, frames the taxation of the transaction, working alongside your accountant. Book a meeting or contact paulosilvasilva.adv@gmail.com · 916 055 901.
Read also
Housing Tax Package · IMT Jovem · Real estate lawyer in Lisbon
The information in this article is general and institutional in nature; it does not constitute legal or tax advice and does not create a client relationship. Rates, thresholds and exemptions are set by the law in force and may change — confirm current values in the Diário da República (dre.pt) and with the Tax Authority.