Taxes on Buying a Home in Portugal: 2026 Guide

Buying a home in Portugal comes with tax costs that should be part of your budget from the outset. Beyond the property price, there are taxes to pay before the deed, annual taxes during ownership and taxes on any gains at the time of sale. Knowing these figures in advance avoids surprises and allows for better planning of the purchase decision.

This guide covers the main taxes applicable in 2026 to international buyers and investors acquiring property in Portugal.

IMT — Municipal Property Transfer Tax

The IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the most significant tax when buying a property. It is paid to the State before the deed and is levied on the value stated in the deed or on the Taxable Asset Value (VPT) — whichever is higher.

In 2026, the IMT brackets were updated by 2% compared to 2025, with a general exemption for a primary and permanent residence up to €106,346 on the mainland.

Rates range from 2% to 8% for a primary and permanent residence, depending on the bracket. For values above €1,150,853, a single rate of 7.5% applies. For a second home, rental or investment, the rates are slightly higher and the first bracket is no longer exempt.

For commercial properties and building land, the fixed rate is 6.5%. For rural properties, 5%. Entities with tax residence in a tax haven pay a fixed rate of 10%.

IMT Jovem (2026 State Budget): young people aged 35 or under who buy their first primary and permanent residence benefit from a full exemption from IMT, Stamp Duty and fees for properties up to €330,539. For properties between €330,539 and €660,982, the exemption is partial — tax is paid only on the amount above €330,539, at a rate of 8%. Above €660,982, the standard tables apply.

Note for non-resident buyers: a fixed IMT rate of 7.5% for non-tax-residents on the purchase of housing is scheduled to take effect from 1 September 2026. Those who become tax residents in Portugal within the following two years, or who rent the property at a moderate rent, may be entitled to a refund. This point should be confirmed with specialised legal support.

Stamp Duty — 0.8%

On the purchase of any property in Portugal, there is also Stamp Duty (Imposto do Selo), which amounts to 0.8% of the acquisition value. There are no brackets or general exemptions — it is a fixed rate applied to all buyers, except in the case of IMT Jovem, where it is also exempt for properties up to €330,539.

Practical example: on a property of €500,000, the Stamp Duty amounts to €4,000.

Both the IMT and the Stamp Duty must be paid before the deed. Without proof of payment, the deed cannot be executed.

Other formalisation costs

Beyond taxes, there are formalisation costs to consider:

Deed (notary): between approximately €600 and €1,500, depending on the property value and the notary chosen.

Land registration: at the Land Registry Office (Conservatória do Registo Predial), usually between €250 and €500.

These are not taxes, but they are mandatory costs and should be included in the total estimate of acquisition costs.

IMI — Municipal Property Tax

The IMI (Imposto Municipal sobre Imóveis) is the annual tax that all property owners in Portugal pay — residents and non-residents alike. It is levied on the property's Taxable Asset Value (VPT), which appears on the property tax record and may differ from the market value.

The rate is set annually by each municipality, within a legal range of 0.30% to 0.45% for urban properties.

In 2026, most Portuguese municipalities — more than 200 — apply the minimum rate of 0.30%. Some relevant figures for the markets where I operate: Lisbon: 0.30% · Porto: 0.324% · Cascais: 0.35% · Oeiras: 0.45% (rose from the minimum to the maximum rate in 2026) · Faro: 0.30% · Loulé: 0.30%

The IMI is paid once a year, usually between April and November, and may be paid in instalments depending on the amount. The payment notice arrives by post or through the Tax Portal (Portal das Finanças).

Temporary IMI exemption: properties acquired as a primary and permanent residence with a VPT up to €125,000, and whose household has a gross annual income below €153,300, may benefit from a temporary IMI exemption for three years. This exemption must be requested and may be used a maximum of twice over the taxpayer's fiscal lifetime.

AIMI — Additional to IMI

The AIMI (Adicional ao IMI) is an additional annual tax levied on higher-value property portfolios. It applies to the total taxable asset value of residential properties held in Portugal, with the following rules in 2026:

Individuals have a deduction of €600,000 (or €1,200,000 for couples under joint taxation). Above that value, a rate of 0.7% applies up to €1,000,000, and 1% above that amount.

Companies and other entities holding residential properties do not benefit from the deduction — they pay AIMI on the total value, which makes investing through corporate structures significantly more costly in tax terms.

The AIMI payment notice is issued by the end of August, with payment due by the end of September.

Capital gains on the sale of a property

When a property is sold in Portugal at a gain compared to the purchase price, that gain may be subject to capital gains tax.

The capital gain is calculated on the difference between the sale value and the acquisition value, less the purchase costs (IMT, Stamp Duty, deed, registration) and the cost of works carried out with an invoice. This is why it is important to keep all acquisition and renovation invoices.

For tax residents in Portugal, property capital gains are included in the IRS (personal income tax) and taxed at progressive rates, with the possibility of partial exclusion if the amount is reinvested in a primary and permanent residence. For non-residents, the rate is generally 28% on the entire capital gain.

The minimum-time rule as a primary and permanent residence for capital-gains exclusion purposes was reduced to 12 months for sales made since 2024.

What this means in practice

On a property of €800,000 acquired as a second home or investment, the tax costs on purchase in 2026 include IMT (calculated using the progressive brackets) plus Stamp Duty of 0.8%. As a guide, the total acquisition taxes for this value may be around €50,000–60,000, depending on the purpose and the buyer's profile. This estimate should be confirmed with a specialised accountant or lawyer before the purchase decision.

Beyond the purchase, you must budget for the annual IMI based on the property's VPT, and possibly the AIMI if the total portfolio exceeds €600,000 in VPT.

How I can help

I am not an accountant or a tax lawyer. But I accompany international buyers in Portugal and I understand how these costs fit into the purchase decision — and I refer you to trusted tax and legal specialists for each situation.

If you are considering buying a property in Lisbon, Cascais, Porto or the Algarve, talk to me. I help you understand the real total cost of the operation, not just the property price.

Sources: Tax and Customs Authority (AT), Circular Letter no. 40129/2026, 2026 State Budget — Law no. 24/2025, Portal das Finanças, idealista/news, Doutor Finanças, PwC Tax Guide 2026.