The 2026 IMT scale explained: every bracket, every edge case

Published April 2026 · 8 min read

Imposto Municipal sobre Transmissões Onerosas de Imóveis (IMT) is Portugal's property transfer tax. It is paid by the buyer before the escritura (deed) can be signed. It is one of the most commonly underestimated costs in a Portugal property purchase, and also one of the most misunderstood.

This article covers the 2026 mainland rate schedule, the primary vs secondary residence distinction, the unusual flat-rate bands at the top of the scale, how the autonomous regions (Madeira and Azores) differ, and several worked examples to make this concrete.

What is IMT?

IMT is a municipal tax levied on property transfers. The rate is progressive for amounts up to €633,453, after which a flat rate applies. The tax base is the higher of the purchase price and the VPT (valor patrimonial tributário) — the fiscal valuation set by Finanças. This matters: if a property's VPT is higher than what you're paying, IMT is calculated on the VPT, not your purchase price.

IMT must be paid via the AT (Autoridade Tributária) portal before the escritura date. The notary will ask for the proof of payment (guia de pagamento) on the day. Late payment is not possible — if you miss the payment, the deed cannot be signed.

2026 IMT rate scale — primary residence, mainland Portugal

The following table shows the 2026 mainland brackets for a primary residence (habitação própria e permanente). These are updated annually in the Orçamento do Estado (state budget).

The IMT formula for the progressive bands is: IMT = price × marginal rate − deductible. The deductible (parcela a abater) makes the rate effectively marginal — so a property at €200,000 does not pay 7% on the full amount, only on the portion above the previous threshold.

The flat-rate bands above €633k

The 6% and 7.5% bands work differently from the progressive brackets. The entire purchase price is multiplied by the flat rate — there is no deductible. This produces a counterintuitive situation near the boundaries:

At €633,000 (just below the 6% flat band threshold), using the 8% progressive formula:
IMT = €633,000 × 8% − €13,191.14 = €37,449

At €633,454 (just into the 6% flat band):
IMT = €633,454 × 6% = €38,007

Crossing the threshold adds about €558 to your tax bill despite the "lower" 6% rate. This is by design — the flat rate ensures a minimum tax on high-value transactions.

Secondary residence and investment property

For a second home, holiday property, or investment property (habitação não permanente or commercial use), the rate schedule differs: the zero-rate band for properties up to €101,917 is replaced by a 1% rate. This effectively adds IMT to every purchase regardless of price. The progressive brackets from €101,917 onwards are similar, but the deductibles are adjusted for the starting 1%.

The practical impact: on a €200,000 investment property, you pay approximately €1,019 more in IMT compared to a primary residence purchase at the same price.

Madeira and Azores

The autonomous regions of Madeira and Azores have their own IMT rate schedules, which are typically around 20% lower than mainland rates. This is an autonomy benefit, not a loophole — it applies to properties physically located in those regions. If you buy in Funchal (Madeira) or Ponta Delgada (Azores), you benefit from the regional rates.

Commercial property and land

Commercial property, land, and non-residential uses are subject to a flat 6.5% IMT rate. There are no progressive brackets for non-residential property.

Tax-haven connected sellers

If the seller is an entity based in a country or territory listed as a tax haven by Portugal's Finanças, a flat IMT rate of 10% applies regardless of property type or value.

VPT and the "higher of" rule

The VPT (valor patrimonial tributário) is Finanças's own fiscal valuation of the property, usually lower than market price but not always. If you're buying a property with a high VPT (common in recently renovated properties or those that were recently assessed), your IMT may be calculated on the VPT rather than your negotiated purchase price. Always ask your lawyer to check the VPT before signing the CPCV.

Stamp duty: the companion tax

IMT is paid alongside Imposto do Selo (stamp duty), which is a flat 0.8% of the purchase price. For a €300,000 purchase: stamp duty = €2,400. If you're taking a mortgage, there's an additional stamp duty on the loan amount: 0.6% of the mortgage value. These three costs together — IMT + stamp duty on purchase + stamp duty on mortgage — represent the largest single cost beyond the purchase price itself.

Total costs on a typical purchase

For a €300,000 property, primary residence, mainland, with a 70% LTV mortgage:

• IMT: ~€10,977
• Stamp duty on purchase (0.8%): €2,400
• Stamp duty on €210k mortgage (0.6%): €1,260
• Notary + escritura (Casa Pronta): ~€700
• Lawyer (1% + 23% VAT): ~€3,690
• Bank valuation: ~€350
• Total on-costs: ~€19,377 (6.5% of price)

This is why buyers who budget "the price + 5%" consistently come up short. The correct rule of thumb is 7–9% of the purchase price for total on-costs, and up to 11% for higher-value properties with a larger mortgage.

When must IMT be paid?

IMT must be paid before the escritura. The standard practice is to pay via the AT portal (Portal das Finanças) in the days immediately before the deed appointment. The payment generates a reference number (guia de pagamento) that is presented to the notary. Payment can be made by bank transfer, MB Reference (ATM), or Multibanco. There is no grace period — no proof, no deed.

IMT on new builds from developers

When buying a brand-new property directly from a developer (promotor imobiliário), the developer is exempt from IMT (they paid it on land acquisition). You, as the buyer, still pay IMT at the standard rates on your purchase price. Don't let any developer claim "IMT free" for your purchase — only the developer's first acquisition is IMT-free.

Summary

IMT is progressive, residence-type-dependent, and calculated on the higher of purchase price and VPT. The 2026 rates range from 0% (first band, primary) to 7.5% (flat, luxury). Always calculate IMT before signing the CPCV — it forms a material part of your closing-day cash requirement. Use the Casa IMT calculator for an instant, accurate figure.