One of the most talked about taxes in Portugal is the IMT (Municipal Tax on Onerous Property Transfers), but what exactly does it consist of? How do you calculate and when should you pay? Find out, in this article produced by ComparaJá.pt, what will be the amount of this tax to be paid if you buy a property.

When thinking about buying a house, many questions arise, namely: which mortgage loan to choose, what rates to consider and taxes to pay. First of all, we suggest the comparison of the entire market, in order to find the most suitable proposal for you, both in terms of payment terms, and in terms of interest rates, associated products and possible benefits.

IMT Tax: what is it and how to calculate it?

IMT is a tax paid to the State on the day you sign your new home. This one focuses on the Tax Equity Value or on the value declared in the property deed, the higher of these two being chosen. In addition, a portion corresponding to the rate to be applied must also be subtracted.

On the Finance Portal it is possible to find the IMT table with this information, and the rate to be applied ranges from 1% to 8%.

To calculate this tax, three characteristics of housing are considered: the type – whether it is urban or rustic; the location – whether it is on the mainland or in the Autonomous Regions; and the purpose – whether it is a permanent or secondary home ownership.

Tax IMT formula:

IMT = Deed Value or Tax Equity Value (the highest) x Rate to be applied - Portion to be deducted

IMT Tax: in which situations should it be paid?

IMT is paid in the following situations:

• Buying and selling a home, whether new or used;
  
• If it is a home exchange;
• Assignment of the buyer's contractual position;
• Concession for usufruct and use of the property;

Attribution of rights over the house, by the owner of the same, to third parties.

It is possible to obtain an exemption from the payment of the IMT, but in specific situations: it is necessary that the purchased house is intended only for Permanent Own Home and the value of the same cannot exceed 92,407 thousand euros in mainland Portugal and 115,509 thousand euros in the Autonomous Regions .

How can you pay the IMT?

You can pay this tax through the purchaser from Finance, by homebanking, at CTT or at an ATM. Payment is made without installments and before the deed.

Find out: Other taxes to pay when buying a property

The IMT tax is mandatory when buying a house, so you should always take this cost into account in the process of purchasing a house. Although there is the possibility of being exempt from payment, the truth is that, with the increase in property prices in Portugal, it is not something that can be granted to all Portuguese people.

Font: Jornal Económico