IMT is the tax paid on buying property in Portugal, and for buyers under 35 it can be nothing at all. The exemption is generous — and it is bounded in three separate ways, two of which are about the buyer rather than the price.
The bands
| Purchase price | IMT |
|---|---|
| Up to €330,539 | Exempt |
| €330,539 – €660,982 | 8% on the excess |
| Above €660,982 | No relief — the ordinary rules apply to the whole price |
Who qualifies
- Age 35 or under, and not taxed as somebody else's IRS dependent that year.
- A first acquisition of an urban dwelling to be your own permanent home. It is not simply an age relief.
- A three-year look-back on previous ownership — the condition that disqualifies people quietly, because it is about history rather than intention.
The look-back is worth pausing on. Someone who owned a property recently — including a share of one, including one they no longer own — can be outside the relief without ever having thought of themselves as a property owner. It is checked against the record, not against how the buyer describes their situation.
The other property taxes
IMT is paid once, on the purchase. Two others recur, and they are unaffected by the Jovem exemption.
| Tax | Rate |
|---|---|
| IMI — urban property | 0.3% to 0.45%, set by each municipality |
| IMI — rural property | 0.8% |
| AIMI — on holdings above the deduction | 0.7%, 1.0% and 1.5% by band |
AIMI applies to the portion of a taxpayer's property holdings above a deduction of €600,000, or €1,200,000 for a couple filing jointly. Most single-home buyers never meet it.
The IMT calculator works the tax out for a given price and use, and the IMI calculator does the annual one.
What is IMT Jovem in Portugal?
An IMT exemption on a first acquisition of an urban dwelling for your own permanent home by a buyer aged 35 or under: no IMT up to €330,539, 8% on the excess to €660,982, and no relief at all above that.
What is the age limit for IMT Jovem?
35 — but age is not the only condition. It must be a first acquisition of an urban dwelling for your own permanent home, you must not be taxed as somebody else’s IRS dependent that year, and a three-year look-back on previous ownership applies.
What happens if the property costs more than €660,982?
The relief is lost entirely. It is a cliff rather than a taper, so the purchase is taxed under the ordinary rules on the whole price.
How much is IMI in Portugal?
Between 0.3% and 0.45% for urban property, set by each municipality, and 0.8% for rural property. Where a council has not deliberated a rate, the legal minimum applies.
Does the IMT exemption affect IMI?
No. IMT is paid once on the purchase; IMI is annual and is unaffected by the Jovem exemption.