The number of brackets and the respective IMT rates remain the same, but the limits change.
For 2025, the government has raised the limit of the Municipal Property Transfer Tax (IMT) brackets by 2.3%.
The changes, which are part of the State Budget, mean that the first 104,261 euros will be exempt from tax. In addition, young people up to the age of 35 will also benefit from the update. This is because the maximum exemption amount, under the support approved in 2024 that exempts them from paying IMT and stamp duty, has also increased.
The IMT to be applied to a permanent home
It's been a habit in recent years and in 2025 it won't be any different: IMT rates vary between 2% and 8%, with the first bracket paying nothing. In other words, when you buy a house on the mainland, the first 104,261 euros are exempt (in 2024 it was 101,917 euros).
2024 vs 2025: What's the difference with a 200,000 euro house?
In order to understand the impact that updating the IMT brackets in 2025 will have on homebuyers' wallets, let's take a 200,000 euro property as an example.
In 2024, this house on the mainland would pay 3,977.58 euros in IMT alone. In 2025, it will pay 3,747.08. All told, that's 230.50 euros less.
Change in IMT on a second home
As usual, the IMT tables for buying a second home have two differences from those for buying your own permanent home. Not only is the first bracket taxed at 1%, but the limit for the fifth bracket is lower.
Young people up to the age of 35 see the exemption limit rise
The increase in IMT brackets in 2025 also brings changes to the support created by the state to help young people up to the age of 35 buy their first home. In this case, the aid that fully exempts these buyers from paying IMT and stamp duty as long as the value of the house does not exceed the fourth IMT bracket.
Now, as the brackets have risen, the exemption limit has also changed. Purchases up to 324,058 euros (in 2024, the limit was 316,772 euros) are now exempt from these two taxes. For example, in 2024, a house worth 320,000 euros paid 258.24 euros in IMT. In 2025, it will pay no tax.
In addition, the measure that came into force in 2024 provides for a partial exemption when properties have a value that falls into the fifth bracket. In this case, the value rose to 648,022 euros. What happens in these situations is that the 8% tax will be levied on the difference between the value of the house and 324,058 euros. To this is added the 0.8% stamp duty.
Here are the criteria for benefiting from the measure:
- Be up to 35 years old;
- Be self-employed for IRS purposes;
- Buying your first home, which must be for your own permanent residence;
- You cannot be the owner or co-owner of a second property or part of a property;
- Must not have been an owner or co-owner in the last three years.
Source: www.doutorfinancas.pt