IMT Payment & Deed Signing in Portugal
A clear walkthrough of the two critical stages that transfer a Portuguese property into your name: paying the property transfer taxes, then signing the escritura (public deed).
Pay IMT & Stamp Duty
Before the deed can be signed, the transfer taxes must be settled with the Portuguese Tax Authority (Autoridade Tributária).
What is IMT?
IMT (Imposto Municipal sobre Transmissões) is a municipal tax paid by the buyer when acquiring real estate in Portugal. It is calculated on the higher of the purchase price or the property's Taxable Value (VPT — Valor Patrimonial Tributável).
IMT rates for residential property
| Usage type | Rate structure | Notes |
|---|---|---|
| Permanent housing | Progressive: ~1% to ~8%, with deductions | Effective rate tops out around 6–8% for high-value properties |
| Second home / non-residential | Flat 8% of the taxable amount | No deductions apply |
| Land (no building) | Flat 6.5% | Applies to bare land purchases |
Worked example
Stamp duty (Imposto do Selo)
A flat 0.8% of the purchase price, paid alongside the IMT.
How to pay
- 1Go to your Portal das Finanças account or a tax office.
- 2Submit the IMT declaration (declaração de liquidação do IMT).
- 3Pay the calculated IMT plus stamp duty.
- 4Receive the IMT settlement document (liquidação do IMT) — you'll need it at the deed.
Sign the Deed (Escritura)
The escritura pública is the formal legal act that transfers ownership from seller to buyer.
It must be executed before a notary, solicitor (solicitador), or lawyer (advogado).
Who must be present
Both buyer and seller attend in person, or are represented by someone holding a valid Power of Attorney (procuração). Each party brings valid identification (passport / ID card) and their NIF (Portuguese tax number).
Documents required at the deed
| Document | Provided by |
|---|---|
| IMT settlement document | Buyer |
| Stamp duty proof | Buyer |
| Caderneta Predial (land registry certificate) | Seller |
| Certidão do Registo Predial (title certificate) | Seller |
| Licença de Utilização (utilization license) | Seller |
| Energy Certificate (Certificado Energético) | Seller |
| Identification & NIF for both parties | Both |
| Promissory Contract (Contrato Promessa), if applicable | Both |
What happens at the deed
- 1The notary verifies all documents and both parties' identities.
- 2The purchase price is paid — typically by bank transfer or bank draft at this stage.
- 3The deed is read aloud and signed by both parties.
- 4The notary issues the certidão da escritura (certified copy of the deed).
Promissory Contract & Deposit
What usually happens before the deed.
It's customary to sign a Contrato Promessa de Compra e Venda (promissory contract) before the deed, where the buyer pays a deposit of around 10% of the purchase price.
- If the buyer defaults, the deposit is forfeited.
- If the seller defaults, they must return double the deposit.
After the Deed
Two follow-up obligations complete the transfer.
Land registration (Registo Predial)
The deed must be registered at the Conservatória do Registo Predial to legally transfer ownership in the public registry.
Tax Authority notification
Report the acquisition to the Tax Authority within 30 days for IMI (annual municipal property tax) registration.
This guide is for general guidance only. Portuguese real estate law has nuances depending on property type, residency status, and other factors. Engage a Portuguese solicitor (solicitador) or lawyer (advogado) for binding legal advice tailored to your transaction.