In 2022, the exemption was applied to amounts up to 93,331 euros, in the case of real estate for one’s own permanent residence. It now increases by 4%, as determined by the new State Budget for 2023.
The value exempt from payment of Municipal Transfer Tax, for the purchase of permanent dwellings, rises this year by 4% to 97,064 euros, determines the State Budget for 20203.
IMT rates vary according to the use of the property. This is calculated on the amount of the transaction or the patrimonial tributary value of the property (the greater of the two). In the case of housing for purposes other than permanent dwelling, this is the value on which a 1% tax rate is levied. Marginal rates apply thereafter, and the limits of the following brackets go up to 132,774 euros, 181,034 euros, 301,688 euros, and 578,598 euros. Above these values, a single rate of 6% is applied, and for properties worth more than 1,050,400 euros, the single rate applicable is 7.5% (1,010,000 euros in 2022), recalls the Observer.
The IMT rate payable is 10% with no exemptions in the case of buyers with tax domicile in a country, territory or region subject to a more favorable tax regime, which is on the list of offshore companies in force in Portugal.
