2026 guidance
How Portugal’s IMT brackets work
Housing IMT is progressive. The bracket rate is not charged on the whole value because the official deduction corrects for the lower-rate slices.
Progressive slices
The first slice of a mainland permanent-home purchase is exempt up to €106,346.00. Higher slices use progressively higher rates.
The deduction
The practical formula is taxable value × bracket rate − deduction. For example, a 7% bracket does not mean the effective rate is 7%.
Who does not use brackets
Qualifying non-resident housing purchases use 7.5%; rural properties use 5%; other urban properties use 6.5%.