Which taxes do I have to pay to the State at purchase?

Which taxes are paid on a purchase?

• IMT, the municipal tax on transfers of homes and land. It depends on the value and the use of the home.
• Stamp duty on the purchase: 0.8% of the value.
• If you take a loan, stamp duty on the loan: 0.6% of the amount, for terms of 5 years or more.

Buyers aged 35 or under may be exempt from IMT and the purchase stamp duty. See the guide Are there exemptions for young buyers or first home purchase?

How is IMT worked out on the home you will live in?

On the mainland, in 2026, the Tax Authority applies this table:

• up to €106,346: 0%;
• €106,346 to €145,470: 2%, minus €2,126.92;
• €145,470 to €198,347: 5%, minus €6,491.02;
• €198,347 to €330,539: 7%, minus €10,457.96;
• €330,539 to €660,982: 8%, minus €13,763.35;
• €660,982 to €1,150,853: 6% on the whole value;
• above €1,150,853: 7.5% on the whole value.

The rate applies to the purchase value, then the amount shown is deducted. In the Azores and Madeira, the brackets are higher.

What about a second home?

There is another table, without the 0% bracket. Up to €106,346, IMT is 1%. So on a second home you pay more IMT than on the home you live in.

An example with the sums

You buy the home you will live in for €200,000, with a loan of €180,000.

• IMT: 200,000 × 7% − 10,457.96 = €3,542.04.
• Purchase stamp duty: 200,000 × 0.8% = €1,600.
• Loan stamp duty: 180,000 × 0.6% = €1,080.

In total, that is €6,222.04 in taxes. For a second home, IMT would be €4,605.50. These are example figures.

When are they paid?

IMT and the purchase stamp duty are paid before the deed. First, you file the IMT return with the Tax Authority. If you buy at a Casa Pronta desk, you can pay them there.

The loan stamp duty is paid when you sign the loan contract.

Does the bank lend for the taxes?

As a rule, no. The bank lends on the lower of the price and the valuation. For the home you live in, up to 90%. You pay the taxes with your own money, on top of the deposit.

Where FINOVA helps

We work out the deposit and taxes with you before you go ahead. In the home purchase simulator you can see how much you can borrow. See also What are the bank and notary costs?

Sources

• Tax Authority — Circular Letter No 40129/2026: IMT tables for 2026 (in Portuguese)
• Tax Authority — Stamp Duty Code (in Portuguese)
• Banco de Portugal — Interest rates in home loans
• Banco de Portugal — Creditworthiness assessment
• Todos Contam — Buying a home (in Portuguese)
• Institute of Registries and Notary — Casa Pronta FAQ (in Portuguese)

Sources checked on 22 September 2026.