Portugal’s tax authority has introduced new tables for the calculation of progressive property transfer tax (IMT) on 10 January 2025.This new tax rate is effective from 1 January 2025.
These updated tables apply to property acquisitions intended as permanent residences or for residential use, with specific provisions for buyers aged 35 and under.
The IMT rates differ between Mainland Portugal and the Autonomous Regions of Azores and Madeira, where higher tax brackets generally result in a lower tax burden.
The revisions align with changes made in the 2025 state budget, which aims to reduce taxes on property acquisitions.
The 2025 State Budget introduces additional provisions, including an exemption from registration fees and related costs for all actions and contracts necessary to enable land consolidation of contiguous or adjoining rural properties owned by the same individual, irrespective of their intended use.
This exemption also covers the registration of rights and encumbrances linked to the consolidated properties.
Furthermore, transfers of rural properties involved in these land consolidation processes will be exempt from the Real Estate Transfer Tax (RETT) and Stamp Duty.
Earlier, Portugal’s parliament has approved the Budget Bill 2025 on 29 November 2024.
