IMT — Imposto Municipal sobre Transmissões

IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is a one-time transfer tax paid when purchasing real estate in Portugal. The rates are progressive based on purchase price and intended use: for primary residences, rates range from 0% on the first €97,064 up to 8% on values above €1,050,400 (2026 thresholds). For second homes and investment properties, a flat rate of 6% applies (urban properties) or 5% (rural). Commercial property is typically charged 6.5%. IMT is paid by the buyer before the deed (escritura) is signed. Land and construction purchases have a 6.5% rate. For property purchased from offshore entities, a flat 10% IMT applies. IMT is non-deductible for personal IRS purposes but forms part of the acquisition cost for capital gains calculation.