What is IMT?
The Municipal Tax on Property Transfer (IMT) is a tax that is levied on the onerous transfers of real estate in Portugal. This tax is charged by the Tax and Customs Authority (AT) at the time of acquisition of a property, whether urban, rustic or mixed.
Who Must Pay IMT?
Any person, natural or legal, who acquires a property in Portugal is subject to the payment of IMT. The tax is applied to both Portuguese and foreign citizens and is due on the date of the deed of purchase and sale or the exchange agreement.
How is IMT Calculated?
The calculation of the IMT is based on the acquisition value of the property or the taxable patrimonial value (VPT), whichever is greater. IMT rates vary depending on the type of property (urban, rustic or building land) and the purpose of the purchase (own and permanent home or second home/investment).
IMT Rate Tables for 2024:
Tax Exemptions and Benefits
There are several situations in which taxpayers can benefit from exemptions or reductions in IMT:
- First own and permanent home: As mentioned, there is a total exemption of up to 92,407 euros.
- Properties acquired for resale: Companies that buy properties for the purpose of resale may be exempt from IMT, as long as the property is resold within three years.
- Real estate acquired through inheritance: In some cases, real estate acquired by inheritance may be exempt from IMT.
Payment of IMT
The IMT must be paid before the signing of the deed of sale. Payment is made through a specific guide issued by the Tax and Customs Authority. Failure to pay the IMT within the stipulated period may lead to fines and interest on arrears.
Procedures After Payment of IMT
After paying the IMT, the taxpayer must present proof of payment at the time of the public deed. The deed cannot be carried out without the presentation of this proof.
Evolution of IMT in Portugal
In recent years, the Government of Portugal has introduced several changes to IMT rates and exemptions with the aim of promoting access to housing and encouraging the real estate market. The most recent measures include exemptions for young people up to 35 years old when buying their first permanent home, as part of the "Tem Futuro em Portugal" plan.
Read also: IMT and IS exemption for young people up to 35 years old
Conclusion
IMT is a significant tax in the process of acquiring real estate in Portugal. Understanding your fees, exemptions, and the payment process is crucial for any property buyer. The recent youth exemption measures are an important step towards facilitating access to housing and supporting new buyers.
References:
- [idealist](https://www.idealista.pt)
- [Finance Portal](https://www.portaldasfinancas.gov.pt)
- [Doctor of Finance](https://www.doutorfinancas.pt)