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Property Tax guide in Portugal.






How much property tax will I have to pay in Portugal.

Property Tax

How much is property tax do you pay in Portugal?

Portugal Property Tax.

If you purchase property in Portugal and you are not a resident in Portugal, you will be liable to pay some taxes. If you are not spending 183 days (Tax Calendar Year) or more in the country you are considered to be not living in Portugal. You are also considered not living in Portugal if your primary address is not there.

Individual Tax.

As a Non-Portuguese resident you are liable to tax on your Portuguese sourced income and a married couple are taxed jointly.

As in most countries through the EU and the world you will have to pay tax on any property you own. Portugal is no exception. Tax is paid on building and land owned and is usually payable to the local authorities or Camera.


IMT Property Purchase Tax,

The tax when you buy your property.

The property tax rates in Portugal differ depending on value and type of property you have bought. It also depends on whether the property is your main residence or a second home. Below are the current rates of property tax in Portugal. These scales apply only to purchases on the mainland. 


IMT Property Purchase Tax 
This is to be Paid when you purchase the property, this tax is payable by the purchaser before completion of the transaction.

On properties for habitation the rate varies according to the purchase price of the property and can go up to 6%.

On rustic land (non-urban) the rate applicable is 5% and on plots of land for building or other types of properties the applicable rate is 6.5%. The minimum amount
on which the IMT can be paid is the VPT ( rateable value ) even if the sales price is lower.

Value of Property Transaction % Tax Payable Amount to Deduct

Up to €92,407.00  = 0% 0

From €92,407.00 to €126,403.00   =  2% €1,848.14

From €126,403.00 to €172,348.00 =  5% €5,640.23

From €172,348.00 to €287,213.00 = 7% €9,087.19

From €287,213.00 to €574,323.00 = 8% €11,959.32

Over €574,323.00 = 6% 0


IMI Annual Property Tax. ( council tax )

The annual tax you will have to pay on your land and property in Portugal is based on a rateable value or VPT of the property, This is he price you paid for your property or the price the property is worth. This valuation is shown in the Fiscal register held by the autorities almost certainly the local council ( camera municipal ). As in most countries the Fiscal value is based on the market value of the property, the location and the local amenities.

You pay your council tax in arrears usually in two instalments. This tax will vary depending on the value of your property here in Portugal but it will be between  0.3%  and 0.45% . The rate is fixed per year by the local council for the area ( camera municipal )

The Fiscal valuation of a property is calculated by three classifications

1: Rural Property ( prédios rustica),

 2: Urban property ( prédios urbano),

3: What can only be described as belonging in between these two. ( prédios misto).  

If the  property is owned by an offshore company they will pay a flat rate of 2%

Your annual property tax bill is usually sent to you from the authorities some at the beginning of the year January – April. You would normally pay your property tax in Portugal in 2 installments. First installment is due in April with the second installment due in September. You can make your payments at a post office, bank or local tax office.

If you’ve purchased a property and paid SISA, you may be exempt from paying property tax for up to ten years, depending on the property’s fiscal value. To qualify the property must be occupied within six months of signing the deeds, the owner must be a permanent resident and the property owned in the name of a private individual (not a company).

An application for exemption must be made to the local tax office within 90 days of the completion of the sale. If you make a late application or pay property tax when it isn’t due, you cannot claim a refund or extend the exemption period, which runs from the date of completion. If you sell within the exemption period, a subsequent owner can also claim an exemption from property tax.

Rental Tax

If you have bought a property in Portugal and decide to rent it out you will be taxed on the rental income you receive from the property. Net rental income is based at a flat rate of 15%.

This taxable income is calculated by the gross rental price minus any cost that you occur to maintain the property also other costs that are incurred such as any insurance policies, council tax and anything that is spent like repairs to the property.  



Portugal Property Tax

As in most countries through the EU and the world you will have to pay tax on any property you own. Portugal is no exception. Tax is paid on building and land owned and is usually payable to the local authorities or Camera.

If you purchase property in Portugal and you are not a resident in Portugal, you will be liable to pay some taxes. If you are not spending 183 days (Tax Calendar Year) or more in the country you are considered to be not living in Portugal. You are also considered not living in Portugal if your primary address is not there.