In Portugal there are essentially two types of property tax. The Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) and Imposto Municipal sobre Imóveis (IMI) although stamp tax is also chargeable on some property transactions.

IMT is a tax payable by the purchaser or beneficiary of a  transfer of movable property be it through sale, inheritance, liquidation of a company etc. It is charged at the following rates:

Value of  Property                                                                    Rate

Up to €92,407                                                                            1%

Between € 92.407 and € 126,403                                         2%

Between € 126,403 and € 172,438                                        5%

Between € 172,348 and € 287,213                                        7%

Between € 287,213 and € 550,836                                       8%

Properties over € 550,836   (Flat Rate)                               6%

The values above are the higher of the sales value or the valuation of the property using the IMI code.

Individuals who are purchasing their principal residence benefit from lower rates of IMT.

The acquisition of more than 75% of a Quota company which owns property is also a transaction subject to IMT.

There are a number of exemptions from IMT such as the following:

• The acquisition of properties that are classified as having municipal, public or national interest.
• The acquisition of buildings by property companies which are destined to be resold.
• Properties built in approved tourist developments.
• Properties built by Investment Funds destined for habitational renting.