Property taxes in Portugal are straightforward yet crucial to understand as they significantly impact the overall cost of owning property here. This guide aims to delineate the various property taxes, ensuring you are well-versed with your fiscal responsibilities as a property owner in this beautiful country.

Having a clear understanding of the property tax structure will not only keep you compliant with the local laws but also help in making informed decisions that could potentially save on taxes. This is especially pertinent for high-ticket properties and wealthier clients where the financial stakes are higher.

Types of Property Taxes

When venturing into the Portugal real estate market, especially at the higher end, being acquainted with the various types of property taxes is essential. Here’s a breakdown of the primary property taxes you’ll encounter:

  • Stamp Duty (Imposto do Selo): This is a one-time tax incurred at the point of purchasing a property. It’s calculated based on the transaction value, and its rate is generally 0.8%. For luxury properties, understanding the exact cost of stamp duty is crucial as it adds to the initial investment.

  • Municipal Property Tax (IMI – Imposto Municipal sobre Imóveis): IMI is an annual tax levied on the property’s municipal tax value. The rate varies depending on the type and location of the property, ranging typically from 0.3% to 0.45%. High-value properties in affluent areas may attract higher rates, making it a significant consideration for wealthy property buyers.

  • Property Transfer Tax (IMT – Imposto Municipal sobre Transmissões): IMT is also a one-time tax paid at the point of purchase. It’s a progressive tax based on the purchase price or the property’s tax value, whichever is higher. The tax rate escalates with the property value, so high-ticket properties will incur a substantial IMT cost.

  • Additional to Municipal Property Tax (AIMI): AIMI is an additional annual tax targeting higher-value properties, making it particularly relevant for wealthier property owners and investors. The rate is progressive, starting at 0.4% for individuals and 0.7% for companies, with a notably higher rate for corporate-owned properties. Understanding the implications of AIMI is crucial for those owning or eyeing premium real estate as it significantly impacts the annual tax liability.

These taxes collectively contribute to the overall cost of owning property in Portugal. For those invested in the luxury real estate market, having a precise understanding of these taxes is vital to ensure compliance and make informed financial decisions.

Tax Payment Process

Understanding the tax payment process is crucial for smooth property transactions in Portugal. The Municipal Property Transfer Tax (IMT) is a pivotal tax that requires payment before signing the sales agreement. For the Annual Municipal Property Tax (IMI), if your tax charges exceed €500, you’ll need to pay in three installments – the first in May, the second in August, and the final in November. On the other hand, the Additional to Municipal Property Tax (AIMI) is calculated centrally in June, with payment due in a single installment during September​1​. Making payments can typically be done online through the Portuguese Tax Authority’s website or at a local tax office. It’s wise to consult a local tax advisor for accurate and timely payments, ensuring a hassle-free property ownership experience in Portugal.

Payments for property taxes in Portugal can generally be made online through the Portuguese Tax Authority’s website, which offers a secure and convenient platform for taxpayers. Alternatively, payments can also be made in person at local tax offices scattered across the country. It’s advisable to have a local tax advisor who can guide you through the payment process, ensuring that all payments are accurately made on time to avoid any penalties or additional charges.


Understanding and adhering to Portugal’s property tax structure is pivotal for a seamless property ownership experience, especially for high-value properties. Being well-versed with the tax rates and payment processes, and consulting with local tax advisors, can significantly ease the journey of navigating through the legal obligations tied to property taxes. This guide aims to provide a solid foundation for prospective and current property owners, enabling them to make informed decisions while investing in Portugal’s real estate market.

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