The OECD recommends that Portugal lower the IMT (property transfer tax) and raise the IMI (municipal property tax), particularly for vacant homes. The recommendations come at a time when parliament approved a package of measures intended to help resolve the housing problem. We analyse the impact on the property market with economist João Duque. Listen to the podcast here.
João Duque: "It's unfair that buying a luxury car costs practically nothing while a home, which is essential, costs so much"
Friday, 16 January 2026RSS
Context & Explainers
The property transfer tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis), commonly called IMT, is a one‑off tax paid when you buy real estate in Portugal and its rate depends on the property’s price and type. The exemption referenced by the finance minister lowers upfront costs for eligible young buyers, making it an important affordability measure for people trying to enter the housing market.
The municipal property tax (Imposto Municipal sobre Imóveis), known as IMI, is an annual tax on property ownership calculated from the property’s taxable value, with the exact rate set by each municipality. For expats who own property, IMI is a recurring local cost that can vary by location and is often central to policy discussions about housing affordability.
Housing fiscal measures are government tax changes or incentives aimed at the property market — examples include changes to property tax (IMI Imposto Municipal sobre Imóveis), stamp or transfer taxes (IMT Imposto Municipal sobre Transmissões Onerosas de Imóveis) and income‑tax (IRS Imposto sobre o Rendimento das Pessoas Singulares) deductions for renovations or rental incentives. The estimated €200–300 million budgetary cost shows the measures have a meaningful impact on public finances and signals whether the government is prioritising tax relief for homeowners, landlords or construction, which can affect property prices and rental markets that matter to expats.
