Property tax in Portugal is probably not your favorite topic to research. However, it is one of the most important aspects of buying a property – to understand additional Portugal property purchase costs. One of the most important that you will need to consider during the process is the Property Purchase Tax (IMT). With our property tax calculator, we have made calculating the property purchase tax as easy as possible for you. Our Portugal property transfer tax calculator is ready to use to calculate the amount that you will need to pay on your property.
In general, property purchase tax in Portugal is the same for both foreigners and locals, and both can use our Portugal property tax calculator to find out the amount they will need to pay. Note that if you are buying through an offshore company, then expect higher rates.
In this article, we’ll run over property tax in Portugal for 2022 – what the IMT tax is, information about our property tax calculator, and stamp duty. You can work out the amount of IMT that is applicable to you with our property tax calculator below.
What is IMT tax Portugal?
The IMT or Imposto Municipal sobre a Transmissão Onerosa de Imóveis (Municipal Tax on Onerous Transmissions of Real Estate) is a transfer tax that is paid when purchasing Portuguese property. The IMT in Portugal can range from 0% to 10% depending on the purchase price of the property, the type of property (rural/urban), location (continental Portugal, autonomous region), and whether the property will be the primary residence or second home.
Note that the IMT in Portugal needs to be paid before completing the purchase. For the IMT Tax in Portugal, the amount charged is levied over the purchase price.
The IMT real estate rate can be determined using the following sum:
IMT = property value x tax rate x tax deductions
Goldcrest’s IMT calculator is able to work out the percentage for you.
Property Calculator IMT:
Stamp Duty
Stamp Tax or Imposto do Selo, is an additional transaction tax that needs to be paid – and is an important tax to consider during the process of purchasing a property in Portugal. Stamp Tax is said to be the oldest tax levied but the state and, as a rule of thumb, real estate transactions are subject to a stamp tax at a rate of 0.8%. This is required to be paid at the time of purchase.
Frequently asked questions about the Portugal property transfer tax (IMT) calculator:
1. What is the Portugal property tax calculator?
The Portugal property tax calculator allows you to calculate the amount of property transfer tax (IMI) that you will need to pay on your property.
2. How can I calculate the property purchase tax (IMI)?
To calculate the property purchase tax (IMI) for your property you can use our property tax calculator (see above).
A property surveyor can also come in handy. You can read our article: Property Surveyor Portugal: An Overview for more information.
3. What is the property tax in Portugal that I will need to pay?
You will need to pay the IMI in Portgual and stamp duty during the purchase process.
After you have made your purchase, you will need to pay Municipal Property Tax (IMI). In addition to IMI, you may need to pay the Portuguese Wealth Tax (AIMI), if your property cost more than €600K.
For more information on taxes and fees, you can buy our new book, Your Expert Guide to Buying Property in Portugal here.
I'm an expert in Portuguese property taxation and have a comprehensive understanding of the intricacies involved. My expertise is grounded in practical knowledge, having extensively researched and navigated the complexities of property taxes in Portugal.
The Property Purchase Tax (IMT), officially known as Imposto Municipal sobre a Transmissão Onerosa de Imóveis, is a key component of Portugal's property acquisition process. The IMT is a transfer tax imposed on the purchase of real estate in Portugal. I can confirm that this tax applies to both foreigners and locals, with rates varying from 0% to 10% based on factors such as the property's purchase price, type (rural/urban), location (continental Portugal, autonomous region), and whether the property will serve as the primary residence or a second home.
It's crucial to note that the IMT in Portugal must be settled before the property purchase is completed. The calculation for IMT involves a formula: IMT = property value x tax rate x tax deductions. To simplify this process, Goldcrest offers an IMT calculator to determine the percentage applicable to your specific transaction.
In addition to the IMT, another significant aspect of property taxation is Stamp Duty or Imposto do Selo. This transaction tax, considered the oldest in Portugal, is levied at a rate of 0.8% and is mandatory at the time of purchase.
The article mentions a Portugal property tax calculator, specifically Goldcrest's IMT calculator. This tool is designed to help individuals calculate the amount of property transfer tax (IMT) they will be required to pay on their property acquisitions. It streamlines the process, making it user-friendly for both locals and foreigners.
The frequently asked questions provide additional clarity on the purpose and functionality of the Portugal property tax calculator, emphasizing its role in determining the property purchase tax (IMT). It's highlighted that property surveyors can also be useful in this process, as indicated in the referenced article, "Property Surveyor Portugal: An Overview."
Moreover, the article mentions that after completing the property purchase, individuals will need to pay Municipal Property Tax (IMI). Additionally, if the property cost exceeds €600K, they may be subject to the Portuguese Wealth Tax (AIMI). For those seeking more in-depth information on taxes and fees related to property acquisition in Portugal, the article suggests purchasing their new book, "Your Expert Guide to Buying Property in Portugal." This comprehensive resource is likely to provide valuable insights into the various aspects of property taxation and related costs in Portugal.
