Portugal's Property Purchase Tax Has Almost Quadrupled in a Decade to 2.1 Billion Euros, While the Tax on Owning a Home Barely Moved
Councils collected 2,146.7 million euros in IMT in 2025, against 583 million in 2015, budget figures show, as house prices rose about 2.6 times. ECO counts almost 17 billion euros from IMT and stamp duty over ten years. What each tax costs a buyer.
Portugal's councils collected 2,146.7 million euros in IMT, the tax paid by anyone who buys a property, in 2025, almost four times the 583 million they took in 2015, according to the Finance Ministry's own figures in the 2027 budget report. The jump is the core of an analysis published today by ECO, which found that IMT and the stamp duty charged on the same sales together brought in almost 17 billion euros over ten years, and that the yearly take has more than tripled.
The figures land as Parliament opens the general debate on the 2027 budget today, with the first vote due on Wednesday.
Which taxes, and how they grew
- IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is paid by the buyer to the council where the property sits. For a permanent home in 2026 there is no IMT up to 106,346 euros; above that, marginal rates rise from 2 to 8 percent, and dearer homes pay a single rate of 6 or 7.5 percent, under article 17 of the IMT code. ECO reports that the tax-free threshold rises to 108,792 euros in 2027.
- Stamp duty (Imposto do Selo) adds 0.8 percent of the price on every property purchase, under item 1.1 of the stamp duty table. It goes to the State; the budget does not split out the property share.
- IMI, the yearly council tax on owners, barely moved: 1,556 million euros in 2015 against 1,612.8 million in 2025. It is charged on the tax valuation of a home rather than its market price, which helps explain the gap. Some owners may be overpaying it.
- AIMI, the Adicional ao IMI paid on larger property holdings, is passed by the State to Social Security: 162.6 million euros this year and 160.8 million forecast for 2027.
Why the take soared
The main driver is prices. Eurostat's house price index for Portugal stood at 263.85 in 2025, against 100 in 2015: homes cost about 2.6 times as much. Receipts have outpaced prices partly because IMT is progressive: a dearer home is taxed at a higher average rate.
Where it fits in the budget debate
The 2027 budget report says council tax revenue is growing strongly this year, driven by IMI and IMT "in a context of a dynamic property market", and puts the councils' 2026 surplus at 1,355.2 million euros. For 2027 it forecasts a fall: IMT down 2.3 percent to 2,189.1 million and IMI down 5.6 percent. The report says almost 120,000 young people have used the IMT and stamp duty exemption on a first permanent home and the State compensates councils for the IMT that exemption costs them. The bill also raises the young buyers' exemption limit, while public housing investment falls.
What it means for buyers
- Budget for IMT plus 0.8 percent stamp duty on top of the price. On a permanent home bought for 330,539 euros this year, IMT alone is about 12,680 euros (an average rate of 3.84 percent), and stamp duty adds about 2,640 euros.
- Since Decree-Law 97/2026 of 20 May, a non-resident buying a home pays a flat 7.5 percent IMT with no exemption. The difference is refunded on request if the buyer becomes tax resident within two years, or lets the home at capped rents for at least 36 months in the first five years (request it within six months).
- Parliament can amend the budget until the final vote on 24 November.
