IMT
IMT is Portugal's Municipal Property Transfer Tax, paid by the buyer on the higher of the acquisition price and the Taxable Asset Value, on progressive brackets.
What it is, why it matters when bidding, and a worked example.
IMT is charged on the transfer and is owed by the buyer before the acquisition is registered. The rate depends on the amount, the location (mainland or autonomous regions) and the use: a primary residence enjoys more favourable brackets than a second home, and there are flat rates for rural property (5%) and other urban property such as building plots and shops (6.5%) (CIMT, art. 17).
Two features of an auction purchase catch out anyone doing the arithmetic in their head. The first is the tax base: the tax applies to the higher of the auction price and the VPT on the tax record, and in a discounted auction it is commonly the VPT that governs. The second is timing: IMT must be settled to obtain registration, that is, within the same short window in which the balance is paid.
On top of IMT come Stamp Duty (0.8% on the same base) and registration fees. IMT is not always due: a primary residence up to €106,346 is exempt (CIMT, art. 9), IMT Jovem exempts buyers aged 35 or under buying their first primary residence up to €330,539 (art. 9(2)), and a purchase for resale by someone who carries on that activity may be exempt (art. 7). Non-residents, on the other hand, pay 7.5% when buying housing (art. 17(10)).
Example
A flat sells at €95,000 and the tax record shows a VPT of €88,000. IMT is computed on €95,000. As a second home, on the 2026 tables, it is €950 (1%); adding €760 of Stamp Duty and €250 of registration, the acquisition cost rises to €96,960 before any works. As the buyer's primary residence, IMT would be €0.
Frequently asked questions
When is IMT paid on an auction purchase?
Before the acquisition is registered, and in practice within the same short window as the balance of the price: the receipt is required to title and register.
Is there an IMT exemption for auctions?
There is no exemption for a property being sold at auction. The general rules apply: the primary-residence exemption up to €106,346 and IMT Jovem up to €330,539 (CIMT, art. 9), and the purchase-for-resale exemption (art. 7), where the conditions are met.
Related terms
Go deeper
IMT, stamp duty, fees, registration and works: the true total cost of a bid.
Read the full guide