The Municipal Tax on Onerous Real Estate Transfers (IMT) Retraite Dorée Au Portugal informs customers that it is a :
A mandatory expense when buying a house and applies whenever associated with the change of owner of a property there is a monetary transaction. It must be paid by the buyer in Finance, homebanking, CTT or ATM, without installments and before making the deed, according to DECO Proteste.
With house prices skyrocketing in some cities, so are the taxes to be paid. After the math, between deeds, records and changes, the IMT can be the heaviest burden. Learn how to calculate the tax and in what situations you can benefit from exemption.
How much will you pay from IMT
If you are going to buy a house for your own permanent housing for less than € 92 407, in Mainland Portugal, you are exempt from payment of IMT. In the Azores and Madeira you benefit from exemption if you invest in a property that costs less than € 115 508.75, also for own and permanent housing. In the case of secondary housing and rental investments, there is no exemption.
The value of the IMT thus varies depending on the type of property (urban or rustic), the amount of purchase of the property and the fee to be applied to that value (which can range from 1 to 8%), its location (Mainland or Autonomous Regions) and purpose the property (Permanent Own Housing or Secondary ria). A house bought for €150,000, for example, has an associated cost of €1,859.77 in tax. If the €150,000 is for a holiday home, the tax will be €2,783.84.
The calculation of the IMT focuses on the largest of the following two values: on the tax asset value of the property or on the value declared in the deed of purchase and sale. On the largest of these two values is applied a rate that is established annually in the State Budget. Updated IMT rates can be found on the Finance Portal.
IMT calculated by the register in finance
Even if the deal was a find, it doesn't mean it's going to benefit from the tax cut. When the purchase price is lower than the tax asset value of the property contained in the building booklet, the IMT is determined according to the higher amount. The amount used to calculate the tax is what is recorded in finance.
In case of exchange of real estate, if there is tax to pay, the charge is for the buyer who gets the most expensive house.
You can obtain the IMT payment note on the Finance Portal
, in Citizens > Services > Municipal Tax on Transmissions > Deliver Declaration. After completing the IMT Model 1, simply make the payment and present the proof in the deed.
Do not pay tax in advance
Although you must obtain the IMT payment guides in advance, the tax should only be paid moments before the deed. The reason is simple: the guide is only valid for one day, so if the payment is made in advance and, for some reason, the deed will eventually not occur on the scheduled date, you will have to ask for the issuance of a new guide and make the payment again.
Even if you are entitled to the return of the amount paid in advance, the process will not be expeditious, which, at a time when you will have to face so many expenses, can cause great inconvenience.
In some cases it is possible to pay the IMT at the same place of the deed, in others you may have to do so at a nearby ATM.
At the time of the deed, you must present, mandatorily, proof of payment of the tax.