IMT PROPERTY TRANSFER TAX

This tax must be paid upon the purchase of a property by the buyer, prior to the completion. The rate will vary on properties for habitational purposes, according to the purchase price.
For example, properties with a rateable tax value of over EUR 1m, a 7.5% rate will be applied.  The rate corresponds to 5% on rustic land and 6.5% on plots for building or other property types.
This rate includes the purchase of shares in companies that own real estate and, as of 2021, is applicable to the purchase of shares in corporations (“sociedade anónima – S.A.”). A 10% rate is also applied to properties purchased (directly or indirectly) by offshore entities included on Portugal ́s blacklist.

AIMI ADDITIONAL MUNICIPAL PROPERTY TAX

AIMI, introduced in 2017, refers to the combined total rateable value of properties (VPT), including all the properties owned by an individual.

It is not applicable for properties valued under EUR 600,000. For values between EUR 600,000 and EUR 1 million, the AIMI is 0.7%

On values from EUR 1 million up to 2 million the tax corresponds to EUR 2,800 (which is 0.7% of EUR 400,000) plus 1% on the excess value of EUR 1 million.

On values above EUR 2 million the tax is EUR 2,800 (0.7% of EUR 400,000) plus 1% on the excess value of EUR 1 million up to 2 million plus 1.5% on the value in excess the 2 million.

Corporate owned properties are subject to an AIMI of 0.4% of the rateable value. In similarity to IMI, there is also a 7.5% rate applied to real estate owned by offshore entities which are included on Portugal ́s blacklist.

IMT – PROPERTY PURCHASE TAX
  • 5% rustic land
  • 6.5% plots for construction and others
  • 7.5% properties for habitation
CAPITAL GAINS TAX
  • 28% on the gain in Portugal for non-residents (Residents in Portugal are not taxed on 50% of their capital gain and the other 50% is added to their usual annual income tax return)
IMI – PROPERTY TAX
  • 0.3% to 0.45%
  • 0.8% rustic Land
AIMI – ADDITIONAL MUNICIPALITY ANNUAL PROPERTY TAX
  • Up to EUR 600,000 – No AIMI tax
  • EUR 600,000 to 1m – 0.7%
  • EUR 1m to 2m – EUR 2,800 + 1% on the value above EUR 1m
  • Above EUR 2m – EUR 2,800 + 1% on the value up to 2m + 1.5% on the value in excess of EUR 2m
OTHER PURCHASE COSTS
  • 0.8% stamp duty
  • EUR 250 for registration fees
  • Notary and lawyer fees will vary depending on the value of the purchase and complexity of the deal
ANNUAL RUNNING COSTS OF THE COMPANY
  • None
ANNUAL FISCAL REPRESENTATION
  • Around EUR 250*
*Estimated amount, subject to the complexity involved.

IMT – PROPERTY PURCHASE TAX
  • No IMT for the purchase of shares in non-resident companies
  • 6.5% for the purchase of shares in Portuguese companies that own Portuguese real estate (depends on certain criteria)
  • 10% for acquisition by offshore entities (or entities controlled by them) included on the Portuguese blacklist
CAPITAL GAINS TAX
  • 25% if the property is sold outside of the company
  • 28% for UBO if the shares are sold; subject to the double treaty taxation between PT and country of residence of the UBO
IMI – PROPERTY TAX
  • 0.3% to 0.45%
  • 0.8% rustic land
  • 7.5% for real estate held (directly or indirectly) by offshore entities included on Portugal ́s blacklist
AIMI – ADDITIONAL MUNICIPALITY ANNUAL PROPERTY TAX Provided the property is attributed to the personal use of its shareholders and directors, (as well as direct family members):
  • 0.7%
  • 1% on tax value above EUR 1m
  • 1.5% on tax value above EUR 2m
  • 7.5% on properties held by offshore entities included on Portugal ́s blacklist
OTHER PURCHASE COSTS
  • No stamp duty
  • No registration fees
  • 1 to 2% legal fees
ANNUAL RUNNING COSTS OF THE COMPANY
  • EUR 1,500 – 4,500*
ANNUAL FISCAL REPRESENTATION
  • EUR 550*
* Estimated amount, subject to the complexity involved.