Buying a second home or an investment property in Portugal (2026): IMT and other costs
A home that will not be the buyer's own permanent residence, such as a holiday home or a home to let, pays IMT on the 'other housing' table: 1% up to €106,346, rising through 2%, 5%, 7% and 8% bands to a single 6% from €633,931 and 7.5% above €1,150,853, plus 0.8% stamp duty. A non-resident buyer pays a flat 7.5% instead.
Key facts
- Other housing has no 0% band: IMT starts at 1% on the first euro (CIMT art. 17(1)(c)).
- The 8% band ends at €633,931 for other housing, against €660,982 for an own home; above that both pay a single 6%, and 7.5% above €1,150,853.
- Stamp duty is 0.8% whatever the use (Stamp Duty Table, item 1.1).
- Letting a home bought at the own-home rate within 6 years cancels the reduced rate, and the difference becomes due (CIMT art. 11(8)).
- Since 25 May 2026 a non-resident pays a flat 7.5% on any home, with a refund route for homes let at a moderate rent (CIMT art. 17(10)).
How much IMT do you pay on a second home in Portugal?
On a €300,000 second home on the mainland, a tax-resident buyer pays €11,605.50 in IMT. If the same home were the buyer’s own permanent residence, IMT would be €10,542.04.
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| IMT (property transfer tax), other housing | Tax | €11,605.50 | 3.87% | |
| Stamp duty (Imposto do Selo, 0.8%) | Tax | €2,400 | 0.80% | |
| Lawyer (market rate) | Fee, estimate | €3,750 | €3,000 to €6,000 | 1.25% |
| Deed and land registration (Casa Pronta) | Fee, estimate | €375 | €375 to €700 | 0.13% |
| Taxes | €14,005.50 | 4.67% | ||
| Fees, typical | €4,125 | €3,375 to €6,700 | 1.38% | |
| Total on top of the price | €18,130.50 | €17,380.50 to €20,705.50 | 6.04% |
The IMT Code does not have a separate rate for holiday homes or for homes to let. Any home that is not the buyer’s own permanent residence (habitação própria e permanente) is taxed on the “other housing” table (CIMT art. 17(1)(c)). The calculator’s “second home” and “investment” options both use it.
What are the IMT rates for other housing?
IMT (property transfer tax), other housing
The taxable value (the higher of the price and the official value) times the rate of its band, minus that band's deduction.
| Value | Rate | Minus |
|---|---|---|
| up to €106,346 | 1% | €0 |
| €106,346 to €145,470 | 2% | €1,063.46 |
| €145,470 to €198,347 | 5% | €5,427.56 |
| €198,347 to €330,539 | 7% | €9,394.50 |
| €330,539 to €633,931 | 8% | €12,699.89 |
| €633,931 to €1,150,853 | 6% | €0 |
| over €1,150,853 | 7.5% | €0 |
Applies when it is not for your main home; the buyer is tax-resident.
Compared with an own permanent home, the table differs in two places:
- it has no 0% band: the first €106,346 pays 1%;
- its 8% band ends at €633,931, against €660,982 for an own home.
From the single-rate bands up, both tables are the same.
How much does a second home cost to buy at different prices?
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €100,000 | €1,800 | €1,875 | €3,675 | €3,175 to €5,000 | 3.67% |
| €200,000 | €6,205.50 | €2,875 | €9,080.50 | €8,580.50 to €10,905.50 | 4.54% |
| €300,000 | €14,005.50 | €4,125 | €18,130.50 | €17,380.50 to €20,705.50 | 6.04% |
| €450,000 | €26,900.11 | €6,000 | €32,900.11 | €31,775.11 to €36,600.11 | 7.31% |
| €640,000 | €43,520 | €8,375 | €51,895 | €50,295 to €57,020 | 8.11% |
| €800,000 | €54,400 | €10,375 | €64,775 | €62,775 to €71,100 | 8.10% |
| €1,200,000 | €99,600 | €15,375 | €114,975 | €111,975 to €124,300 | 9.58% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €100,000 | €800 | €1,875 | €2,675 | €2,175 to €4,000 | 2.67% |
| €200,000 | €5,142.04 | €2,875 | €8,017.04 | €7,517.04 to €9,842.04 | 4.01% |
| €300,000 | €12,942.04 | €4,125 | €17,067.04 | €16,317.04 to €19,642.04 | 5.69% |
| €450,000 | €25,836.65 | €6,000 | €31,836.65 | €30,711.65 to €35,536.65 | 7.07% |
| €640,000 | €42,556.65 | €8,375 | €50,931.65 | €49,331.65 to €56,056.65 | 7.96% |
| €800,000 | €54,400 | €10,375 | €64,775 | €62,775 to €71,100 | 8.10% |
| €1,200,000 | €99,600 | €15,375 | €114,975 | €111,975 to €124,300 | 9.58% |
What happens if you let out a home bought as your permanent home?
The own-home rates are a reduced rate, and the IMT Code takes them back in two cases (CIMT art. 11(8)):
- the buyer does not move in as their permanent residence within 6 months of buying;
- within 6 years of buying, the home is given another use, for example let out.
The difference between the two tables then becomes due. Selling the home within the 6 years does not count as another use, nor does a change in the household or a job move more than 100 km away while the property stays a home. A home bought from the start to let pays the other housing table at the deed.
Do non-residents pay more on a second home?
Since 25 May 2026 a buyer who is not tax resident in Portugal pays a flat 7.5% on any home, with no exemption or reduction (CIMT art. 17(10)). On a €300,000 holiday home that is €22,500.
A non-resident who lets the home as housing within 6 months, at a rent of no more than 2.5 times the national minimum monthly wage, for at least 36 months in the first 5 years, can claim back the difference from the normal rates. The non-resident buyers guide covers this exception and the refund claim.
Is there an extra charge on new builds sold with reduced VAT?
Yes, if the buyer does not live in it. Decree-Law 97/2026 created a 6% VAT rate (item 2.42.1 of the VAT list) for building work on new homes sold as the buyer’s own permanent home at a moderate price. If such a home is not used as the buyer’s permanent home within 6 months of purchase, or stops being used only for that in the following 12 months, the buyer pays an IMT increase of 10% of the taxable value (art. 10(5)). Exceptional circumstances are excused (art. 10(6)). The reduced VAT covers projects whose planning process starts between 25 September 2025 and 31 December 2029, where the VAT falls due from 1 January 2026, and the VAT item ends on 31 December 2032 (art. 10(7) and 18(5)).
The calculator does not include this increase.
What annual taxes does a second home pay?
These are not part of the purchase, but they come with owning:
| Tax | Rate | Law |
|---|---|---|
| IMI, municipal property tax on urban property | 0.3% to 0.45% of the tax value a year, set by each municipality | CIMI art. 112(1)(c) and (5) |
| IMI on homes empty for more than a year | Three times the normal rate | CIMI art. 112(3) |
| AIMI, additional IMI, for individuals | 0.7% on the total tax value of residential property after a €600,000 deduction; 1% on the part of the total between €1 million and €2 million, and 1.5% above €2 million | CIMI art. 135-C and 135-F |
A married couple can choose joint AIMI assessment, which doubles the deduction and the thresholds (CIMI art. 135-D).
What this guide does not cover
- Buying through a company, and the 10% IMT rate for companies linked to tax havens.
- Income tax on rent and the short-term letting (alojamento local) rules.
- Capital gains tax when selling.
- Rustic land and commercial property.
Questions people ask
How much IMT do I pay on a second home in Portugal?
IMT on a second home uses the 'other housing' table: 1% up to €106,346, then bands of 2%, 5%, 7% and 8% up to €633,931, a single 6% on the whole value up to €1,150,853 and 7.5% above (CIMT art. 17(1)(c); Ofício Circulado 40129/2026). Stamp duty of 0.8% is added.
Is IMT higher on a buy-to-let than on a holiday home?
No. Both pay the same 'other housing' table, because neither is the buyer's own permanent residence. The difference is with an own permanent home, which has a 0% first band and a longer 8% band.
What happens if I let out a home I bought as my permanent home?
If it is let, or given any other use, within 6 years of purchase, the own-home rate is lost and the IMT difference becomes due. The same happens if the buyer does not move in within 6 months (CIMT art. 11(8)).
Do non-residents pay more IMT on a holiday home?
Yes, below the top band. Since 25 May 2026 a non-resident pays a flat 7.5% on any home (CIMT art. 17(10)). Above €1,150,853 every buyer already pays a single 7.5%, so there is no difference there.
Sources
- Código do IMT, article 17 (rates)Portal das Finanças (Autoridade Tributária e Aduaneira)
- Código do IMT, article 11 (when exemptions and reduced rates are lost)Portal das Finanças (Autoridade Tributária e Aduaneira)
- Ofício Circulado 40129/2026: IMT practical tables from 1 January 2026Autoridade Tributária e Aduaneira
- Código do IMI, article 112 (IMI rates)Portal das Finanças (Autoridade Tributária e Aduaneira)
- Código do IMI, article 135-F (AIMI rates)Portal das Finanças (Autoridade Tributária e Aduaneira)
- Código do IMI, article 135-C (AIMI taxable value and deduction)Portal das Finanças (Autoridade Tributária e Aduaneira)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.