Property taxes
IMT-Municipal Tax of Onerous Transfer-Before the act completion (deeds) the purchase may be subjected to a property transfer tax called "IMT-Imposto Municipal sobre Transmissões Onerosas de Imóveis". Depending upon the nature of the property the value can vary.
Residential properties: The amount of "IMT" tax payable can be considerably reduced in residential properties, according to the price of the property.
Table of the Property Transfer Tax ( IMT ) for the year 2007
| Value of the property | Percentage to Apply | Deducted Value |
|---|---|---|
| Until € 85.500 | 1% | €0.00 |
| From € 85.500 until € 117.200 | 2% | € 855.00 |
| From € 117.200 until € 159.800 | 5% | € 4.370,97 |
| From € 159.800 until € 266.400 | 7% | € 7.567,01 |
| From € 266.400 until € 511.000 | 8% | € 10.231,09 |
| Superior to € 511.000 | 6% | |
|
Example: Price of property = 100.000,oo € x ( % tax to apply) 2 % = 2.000,oo € - ( to reduce ) 855,oo € = 1.145,00 € IMT tax to pay |
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Commercial properties & building plots: pay 6,5 % of IMT tax, rustic and agricultural lands: Pay 5 % IMT Tax, if the buyer is a Offshore company, the tax to be paid is 15%
Stamp Duty
This tax is levied on all documents, books, papers, acts deeds and products listed in the General Schedule Stamp Duty and determined by the value of the act or contract. A property purchase is subjected to Stamp duty-0,8% of the price.
IMI—Municipal Property Tax/ Rates
This is a municipal tax (source of income for the Councils) levied on the taxable estate value on all properties located on Portuguese territory. The taxable person is the owner of the property, usufructuary and surface rights holder, on the 31 st of December of the year which the tax is related.
The IMI rates are: for rural properties-0,8%, for urban properties-between 0,2% to 0,5% (variable from council to council)
important: These are the taxes to pay on a simple process of purchase and can vary depending on the situation, for example applying for a loan to purchase a property.