What taxes do I pay to buy and own a home?
Conditional on the value and use of the property. Those who own a home pay annual IMI to the municipality: 0.30% to 0.45% of the Taxable Asset Value (most apply 0.30%), with deductions for children ("family IMI"). Buyers pay IMT (transfer tax): for a permanent own home, it's 0% up to about €106,346 (2025 value: €104,261, updated yearly), rising in brackets to 6%; second homes have their own table. You also pay 0.8% Stamp Duty on the purchase value. There's IMT Jovem: on a first own home, buyer up to 35, full exemption up to ~€330,539. In short: IMI every year; on purchase, IMT + stamp, with exemptions for own homes and young buyers.
📋 The rules
- IMI annual: 0.30–0.45% of the taxable value
- IMT on purchase: 0% up to ~€106,346 (own home)
- Stamp Duty: 0.8% on the purchase
- IMT Jovem (under 35): full exemption up to ~€330,539
- IMI/IMT brackets: updated yearly
🔓 Exceptions
- Second homes / non-residential: own tables and rate (6.5%)
- Family IMI: deduction per child (€30/€70/€140)
- Partial IMT Jovem ~€330,539–€660,982; above, it's lost
⚠️ Penalties & fines
There's no "fine" for the purchase itself, but there are taxes and deadlines. IMT and Stamp Duty are paid before the deed; IMI is assessed annually (in instalments by value). Beware myths: "no tax under €100,000" — only applies to a permanent own home; for a second home there's IMT from the first euro. The brackets of IMI, IMT and IMT Jovem are updated every year. And unlike Brazil (ITBI/IPTU), the Portuguese taxes are called IMT and IMI. To plan a purchase: simulate the IMT by value and use, check if you qualify for IMT Jovem (first home, up to 35), and budget for annual IMI after buying.
📎 Official sources
❓ Frequently asked
What taxes do I pay to buy a home?
On purchase, you pay IMT (the municipal transfer tax), which is progressive, and 0.8% Stamp Duty on the purchase value. For a permanent own home, IMT is 0% up to about €106,346, then rising in brackets to 6%. Second homes have their own table.
What is IMI?
IMI is the municipal property tax, paid annually by those who own a home. The rate for urban property ranges from 0.30% to 0.45% of the Taxable Asset Value, set by each municipality, and most apply 0.30%. There are deductions by number of children, the so-called family IMI.
Is there an IMT exemption for young buyers?
Yes. IMT Jovem exempts the purchase of a first permanent own home by young people up to 35, with full exemption up to about €330,539 and partial up to about €660,982. Above that, the exemption is lost. It also waives Stamp Duty up to the same ceiling.
Is it true there's no tax under €100,000?
Only for a permanent own home. In that case, IMT is 0% up to about €106,346. For a second home or a property not for permanent own use, there's IMT to pay from the first euro, under separate tables. So the property's use is decisive.
Do the figures change every year?
Yes. The IMT and IMT Jovem brackets and reference values are updated annually, usually upwards. IMI rates are set by each municipality within the legal range. So you should always simulate with the figures for the year you'll buy or pay the tax.
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