New IMT table for home buyers in Portugal: Tax exemption limit increases to 108,792 euros

The Portuguese Government proposed to update the brackets of the IMT tax applied to housing purchases by 2.3 percent in its 2027 State Budget proposal. According to the new table, the general IMT exemption limit available to those who purchase a home for their own permanent residence will increase from 106,346 euros to 108,792 euros.

The regulation has not been finalized yet. The budget must be enacted before the new amounts can be implemented.

What is IMT, who pays?

Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) is a tax applied to the purchase of real estate in Portugal.

The IMT amount to be paid when purchasing a house varies depending on the value of the property, its intended use and the tax regime to be applied.

Tax calculation is generally based on the higher of the sales price specified in the contract and the valor patrimonial tributário, which is the tax value of the real estate.

For this reason, the exact IMT amount should not be calculated based on the advertised price alone.

General exemption limit increases

The general IMT exemption limit for those who purchase a house for their permanent residence in 2026 is 106,346 euros.

In the 2027 budget proposal, this limit is increased to 108,792 euros.

The increase is 2,446 euros.

However, this change does not mean that the tax will be calculated by applying a single rate to the entire sales price for all residences exceeding 108,792 euros.

In the IMT system, segmented taxation is applied for different value ranges.

Different limits for young people's first home purchase there is

In Portugal, there are special tax advantages for young people aged 35 and under who meet certain conditions to purchase their first permanent residence.

In the 2027 proposal, it is envisaged that the full exemption limit of this regime will also be increased.

In the new table provided by ECO, the full exemption limit for young people is 338,141 euros.

This amount should not be confused with the general IMT exemption limit of 108,792 euros.

In order for the benefit for young people to apply, age, first residence, ownership history and other legal conditions must be met.

Can foreign citizens also benefit from IMT exemption?

Foreign citizens who buy housing in Portugal are also subject to relevant tax regulations.

In general IMT exemption, the main evaluation is based not only on the citizenship of the buyer, but also on the intended use of the real estate and the tax conditions to be applied.

There are additional eligibility conditions in the special regime for young people's first home purchase.

Therefore, whether a foreign buyer can benefit from the exemption should be evaluated according to his personal situation.

What expenses are there outside of IMT?

When purchasing a house, you are not only faced with the IMT tax.

Depending on the nature of the transaction, stamp duty (Imposto do Selo), title deed and registration costs, and if a loan is used, bank and financing expenses may also arise.

Some special exemption regimes may also cover some of these costs.

However, the general IMT exemption This does not mean that the purchase is free from all taxes and charges.

What should home buyers do in 2027?

Since the 2027 budget proposal has not yet become law, it should not be assumed that the new borders are finalized.

The tax table in effect on the date of the purchase should be taken as basis.

It is important for buyers to check the IMT calculation through the official system of the Autoridade Tributária and verify all conditions, especially for exemptions for young people.

Resources

ECO — Rita Atalaia, Governo atualiza escalões do IMT em 2,3%. Veja aqui as sign, 8 October 2026

eco.sapo.pt

Autoridade Tributaria e Aduaneira

info.portaldasfinancas.gov.pt