Taxes on Buying and Owning Real Estate in Portugal: What You Need to Know in 2025

Buying or owning a property in Portugal involves paying several taxes, which vary depending on the type of property, the value of the transaction and the buyer's profile. Knowing these obligations is essential to make informed decisions and avoid surprises in the procurement process.

At Real Easy, we believe that a well-informed buyer is a more prepared buyer. Although we do not provide accounting or tax consulting services, we closely monitor the process and, whenever necessary, can recommend specialized professionals to ensure proper follow-up.

1. IMT – Municipal Transfer Tax

The IMT is paid only once, at the time of purchase of the property. The rate varies depending on the location, the acquisition value, the type of property and its purpose (own residence, secondary, land, etc.).

Applicable brackets in 2025 (Mainland):

• Up to €104,261 – Exempt (own and permanent residence)

• From €104,261 to €142,618 – 2%

• From €142,618 to €194,458 – 5%

• From €194,458 to €324,058 – 7%

• From €324,058 to €648,022 – 8%

• From €648,022 to €1,128,287 – 6% (one-time fee)

• Above €1,128,287 – 7.5% (one-time fee)

Note: These percentages are applied progressively, with an effective rate calculated according to official tables.

IMT Youth Benefit: up to 35 years old, and for permanent housing, there is total exemption up to €324,058 and partial exemption up to €648,022.

2. Stamp Duty

Stamp duty is paid in the deed, at the rate of 0.8% on the acquisition value. If bank financing is available, an additional fee (usually 0.6%) is also applied on top of the loan amount.

3. IMI – Municipal Property Tax

IMI is an annual tax, applied to the property owner based on the taxable patrimonial value (VPT), calculated by the Tax Authority.

The rates are defined by each municipality, within the following limits:

• Assessed urban buildings: between 0.3% and 0.5%

• Rustic buildings: 0.8%

• Buildings not assessed under CIMI: up to 0.8%

For example, in 2025, the municipalities of Faro, Tavira and Olhão apply the minimum rate of 0.3%.

Exemptions: there may be an exemption from IMI for 3 years for own and permanent housing, in properties with a VPT of less than €125,000 and with a taxable household income of less than €153,300.

4. AIMI – Additional to IMI

The Additional IMI applies to the set of urban properties held by a taxpayer, when the total value exceeds €600,000 (in the case of natural persons).

Applicable Fees:

• 0.7% for amounts between €600,000 and €1,000,000

• 1% between €1,000,000 and €2,000,000

• 1.5% over €2,000,000

This tax is calculated based on the total taxable patrimonial value of urban residential properties or building land.

Practical example

Purchase of a property of €350,000, by a buyer under 35 years of age and intended for permanent residence:

• IMT: exempt up to €324,058; 8% is paid on the remaining €25,942, i.e. about €2,075

• Stamp duty: 0.8% on €350,000, or €2,800

• Annual IMI: with a rate of 0.3%, results in an annual value of €1,050

The role of Real Easy

Real Easy accompanies each client at all stages of the purchase process, from the initial valuation of the property to the moment of the deed. We do not provide accounting or tax consulting services, but we can recommend specialized and reliable professionals whenever necessary.

We work with attention to detail, clarity in information and focus on representing the client's interests with professionalism.

If you have questions or wish to start a buying or selling process, we are available to support you every step of the way.