Portugal has various property taxes within its fiscal system, such as Stamp Duty, IMI - Municipal Property Tax, and IMT - Municipal Tax on Onerous Property Transactions.

IMT - Municipal Tax on Onerous Property Transactions, and Stamp Duty are levied upon the acquisition of a property. Payments for these taxes are made after submitting a declaration to the Tax and Customs Authority, where the details of the property transaction are provided. From that point onwards, the buyer becomes subject to these taxes, which must be paid before or on the date of the purchase and sale deed.

Properties are assessed according to the IMI Code, based on assumptions related to quality, comfort, the time of issuance of the housing or usage permit, the square meter price defined by law, and the area of the property being assessed. There is no direct relation to the commercial value of a property.

IMI is presumed to be a tax that contributes to the budgets of municipalities, with the coefficient applied to the Property Value set by each municipality.

Property owners are obliged to pay municipal property tax based on the Patrimonial Value, also known as the fiscal value. This tax is paid in the year following the property's acquisition. For instance, if a property is acquired in 2022, IMI is paid in 2023. The payment can be made in one installment or in two installments in May and November when the annual IMI value is between 100 and 500 Euros, or in three installments in May, July, and November when the value exceeds 500 Euros.

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