Property taxes on acquisition
IMT (Property Transfer Tax), is the Portuguese property tax which is paid whenever property ownership is transferred. This tax is paid by the purchaser before signing the final deed of sale.
The Portuguese tax system charges the amount based on the purchase price or the - VPT (its rateable value, attributed by tax authorities), whichever is higher. The rateable value, however, is in most cases much lower than the purchase price.
The IMT will vary according to whether you are buying a permanent residence or a second home, or a rental property.
Before you enter the Portugal Property Market you should be advised on the total you will pay in IMI, which is an annual Portuguese property tax, similar to Council Tax in the UK.
The equivalent to Stamp Duty is called Imposto de Selo in the Portuguese tax system. When you buy a property, stamp duty is charged at a rate of 0.8% of the ‘highest value’ of the property (purchase price or VPT)
It is the purchaser’s responsibility to pay this tax prior to the signing of the final deed, so that they can show proof of payment to the notary.