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, while rural and other properties follow their own single, higher rates.
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. Together they typically represent between 1% and 8% of the acquisition value depending on bracket and use — far too large a slice to leave out of the maximum-bid calculation.
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 the tax is around €3,400; adding €760 of Stamp Duty and roughly €250 of fees, the acquisition cost rises to nearly €99,400 before any works.
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, including the exemptions and reductions available for a primary residence in certain brackets.
Related terms
Go deeper
IMT, stamp duty, fees, registration and works: the true total cost of a bid.
Read the full guide