This is the Portuguese Property Purchase Tax and will need to be paid prior to completion.  The amount payable varies with the value of the property, and your lawyer will always advise you of this figure before you incur any expenditure. Tax Exemption applies to purchases below 80.000Euros and a maximum of 6% applies to purchases above 500.000Euros. Between these amounts there is a sliding scale from 0% to 6%. The above mentioned figures only apply to residential villas or apartments. Different percentages are applicable on land or non-residential property, and in those cases it is a fixed percentage, which does not vary with the price. Rustic land is 5% and for other non-residential purposes and urban land it is 6.5%.

A very important exception has been introduced to the above figures in that whenever the Purchasing Entity is an Offshore Territory Resident/Company, the IMT percentage will always be 15% regardless of the purchase price or the nature of the property.