Property Taxes & related topics
Property Transfer Tax (IMT)
Property Transfer Tax (Imposto Municipal sobre Transmissões) used to be called SISA. All new properties are valued and existing properties are re-valued in line with current market prices. In Portugal the following criteria are used to value a property:
• Cost of property
• Size of property (number of rooms, land area etc)
• Type of use (residential, commercial, industrial, rental)
• Location of property (does it have breathtaking views out to the sea, etc)
• Quality of the surrounding infrastructure (roads, rail links, distance from airport, facilities)
• Property"s age
Generally there is NO exemption from paying IMT. Do not confuse IMT with IMI (Municipal Tax)
Property & Land Registry fees
Fees will typically be around 6% of the total value of the property.
Council Tax
Portuguese Council Tax (Imposto Municipal sobre Imóveis) or IMI is calculated on the new or current property value of a given property. The amount to be paid depends on a fee, set annually by the municipality based on where the property is located, and on the Property Taxable Value (VPT) of the property, calculated by the Autoridade Tributária e Aduaneira (AT).
Stamp Duty (Imposto de Selo)
Stamp Duty has been around in Portugal since 1660 and was reformed and simplified in 2000. It determines the taxable value of property bought and given according to the rule of the Código do Imposto Municipal sobre Imoveis (CIMI). Anyone who acquires property; is given or inherits a house, shop, office, warehouse or any other property or who has taken out a property loan (i.e. a mortgage) must pay stamp duty.
As a general rule 0.8% Stamp Tax is paid on the value of the property. For example on a 150,000 Euro property 1,200 Euros goes to Stamp Duty. In the case of gifts the amount is 10% except for donations made to descendents and ascendants, which are considered to be exempt. Check out the complete table on the finance portal.
For a full explanation of all the taxes payable see the Government Tax website
