Residential real estate may be entitled to a reduction in IMT when the purchase price is less than €574,323 (mainland Portugal) or €717,904 (Azores and Madeira) = reduced rate.
This reduction also varies according to the real estate’s purpose (permanent primary residence of buyer = lower IMT than that of property intended for rental, a second home or other residential purpose).
In this case, the IMT amount can be calculated as follows:
| TABLE I – (mainland Portugal)
Permanent primary residential property |
||
| Amount subject to IMT
(euros) |
Rate (%) | Deduction
(euros) |
| Up to 92,407 | 0 | – |
| >92,407 to 126,403 | 2 | 1,848.14 |
| >126,403 to 172,348 | 5 | 5,640.23 |
| >172,348 to 287,213 | 7 | 9,087.19 |
| >287,213 to 574,323 | 8 | 11,959.32 |
| >574,323 | Single rate of 6% | – |
| TABLE I – (mainland Portugal)
Property for other residential purposes (e.g. rental or second house) |
||
| Amount subject to IMT
(euros) |
Rate
(%) |
Deduction
(euros) |
| Up to 92,407 | 1 | – |
| >92,407 to 126,403 | 2 | 924.07 |
| >126,403 to 172,348 | 5 | 4,716.16 |
| >172,348 to 287,213 | 7 | 8,163.12 |
| >287,213 to 550,836 | 8 | 11,035.25 |
| >550,836 | Single rate of 6% | – |
| TABLE II – (Azores and Madeira)
Permanent primary residential property |
||
| Amount subject to IMT
(euros) |
Rate
(%) |
Deduction
(euros) |
| Up to 115,509 | 0 | – |
| >115,509 to 158,004 | 2 | 2,310.18 |
| >158,004 to 215,435 | 5 | 7,050.29 |
| >215,435 to 359,016 | 7 | 11,358.99 |
| >359,016 to 717,904 | 8 | 14,949.15 |
| >717,904 | Single rate of 6% | – |
| TABLE II – (Azores and Madeira)
Property for other residential purposes (e.g. rental or second house) |
||
| Amount subject to IMT
(euros) |
Rate
(%) |
Deduction
(euros) |
| Up to 115,509 | 1 | – |
| >115,509 to 158,004 | 2 | 1,155.09 |
| >158,004 to 215,435 | 5 | 5,895.20 |
| >215,435 to 359,016 | 7 | 10,203.90 |
| >359,016 to 688,545 | 8 | 13,794.06 |
| >688,545 | Single rate of 6% | – |
The property value shall be the greater of the following two amounts:
— taxable assessed value of the property per legal description at the tax authority website (Portal das Finanças);
— price.
Using these tables, the IMT amount can be determined using the rate corresponding to the property’s value minus the respective deduction.
The following steps should be followed:
1. Choose the table matching the property’s location and purpose;
2. Find the range matching the home’s value;
3. Multiply it by the corresponding rate;
4. From the sum obtained, subtract the deduction;
5. The result obtained = IMT amount.
Example:
Purchase of home (permanent primary residence, mainland Portugal) for €150,500.00 (assessed value = €85,000.00), IMT = €1,884.77.
Calculation:
150,500.00 x 5% – 5,640.23 = 7,525 – 5,640.23 = €1,884.77
For the purchase of a home of the same value in the Azores or Madera, IMT = €699.82
Calculation:
150,500.00 x 2% – 2,310.18 = 3,010 – 2,310.18 = €699.82
For the purchase of a vacation home of the same value on mainland Portugal, IMT = €2,808.84
Calculation:
150,500.00 x 5% – 4,716.16 = 7,525 – 4,716.16 = €2,808.84
