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.

Updated 13 August 2026: this article uses the OE2026 brackets, includes the under-35 first-home relief and covers the flat rate introduced for non-resident residential buyers by Decree-Law 97/2026. The rules remain time-sensitive, so confirm the figures with AT before signing.

What is IMT?

IMT is a municipal tax levied on property transfers. For a mainland primary residence bought by a Portuguese tax resident, the 2026 scale is progressive up to €660,982, after which a flat rate applies. Residential purchases by non-Portuguese-tax-resident buyers follow a separate flat-rate rule. 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.

Under-35 first-home relief

Since acquisitions completed from 1 August 2024, buyers aged 35 or under may qualify for a full or partial exemption from IMT when buying their first permanent home. The same measure exempts the acquisition from stamp duty, subject to the statutory value bands and conditions.

Eligibility is not based on age alone. You generally must not have owned a residential property in the previous three years, the property must become your habitação própria e permanente, and the purchase must be in your own name rather than an investment or company acquisition. Check the current value bands and your ownership history with AT or a Portuguese notary before relying on the relief.

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 €660,982

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 €660,982 (the top of the 8% progressive band):
IMT = €660,982 × 8% − €13,763.35 = €39,115.21

At €660,983 (just into the 6% flat band):
IMT = €660,983 × 6% = €39,658.98

Crossing the threshold adds about €544 to your tax bill despite the "lower" 6% rate. This is by design — the flat rate ensures a minimum tax on high-value transactions.

Non-resident residential purchases: flat 7.5%

Decree-Law 97/2026, in force from 20 May 2026, makes a residential purchase by a buyer who is not Portuguese tax resident subject to flat 7.5% IMT, without exemptions or reductions. The buyer's intended use does not put the purchase onto the resident primary-home scale at completion. On a €290,000 residential purchase, the IMT is therefore €21,750.

A buyer may claim a refund of the difference from the progressive scale if they become Portuguese tax resident within two years. A refund route also exists where the home is let at capped rents for at least 36 months during the first five years. Both routes depend on the statutory conditions and evidence, so confirm the claim with AT or a qualified tax adviser.

Resident second homes and residential investment property

For a buyer who is Portuguese tax resident, a second home, holiday property or residential investment property uses the resident second-home scale. Its first band is charged at 1% rather than the 0% primary-residence rate, and the progressive deductions are adjusted accordingly. It does not apply to a non-resident residential purchase, which is charged at the flat 7.5% rate described above; commercial property follows its own rule.

The practical impact: on a €200,000 residential investment property, a resident buyer pays approximately €1,063 more in IMT than on a resident primary-residence purchase at the same price.

Madeira and Azores

The autonomous regions of Madeira and Azores have their own 2026 IMT schedules under Law 21/90. The thresholds and deductions are higher than the mainland schedule, so use the regional tables rather than subtracting a flat percentage from mainland tax.

Commercial property and land

Other urban property, including commercial property, is subject to flat 6.5% IMT. Rural property is subject to a separate flat 5% rate.

Tax-haven connected acquirers

A flat 10% rate can apply where the acquirer is an entity domiciled in, or controlled from, a listed more-favourable tax jurisdiction. CIMT Article 17 excludes individual acquirers from this rule.

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: €10,542.04
• 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: ~€18,942 (6.3% of price)

There is no reliable single percentage for every buyer. A resident primary-home purchase follows the progressive scale and the €300,000 example above is about 6.3% including the stated finance and professional costs. A non-resident residential buyer starts with 7.5% IMT alone, before stamp duty, finance and professional costs. Budget according to tax residence, intended use, price and financing rather than applying a broad rule of thumb.

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 calculated on the higher of purchase price and VPT. Portuguese tax residents use the relevant progressive residential scale updated for OE2026 by Lei n.º 73-A/2025, including the distinct second-home treatment, while non-resident residential buyers pay a flat 7.5% under Decreto-Lei n.º 97/2026. Qualifying resident first-home buyers aged 35 or under may have separate relief. Always calculate IMT before signing the CPCV — it forms a material part of your closing-day cash requirement. Use the MyCasa IMT calculator for an estimate, then confirm your residence status, any relief and any later refund route with AT.