Proposed State Budget Law for 2026
Real Estate Taxes
Check PwC’s analysis of the 2026 State Budget regarding Property Tax and Stamp Duty. Stay informed about all the changes. Have questions? PwC has the answers!
Real Estate Transfer Tax (IMT)
Determination of the IMT rate for the transfer of residential urban properties
The brackets for determining the IMT rate applicable to the transfer of urban properties, or individual units of urban properties, intended exclusively for housing, are updated by 2%.
As a result of this change, in the case of the acquisition of an urban property or an individual unit of an urban property intended exclusively as the buyer’s own permanent residence, IMT is only payable if the value on which the tax is levied exceeds € 106,346 (previously € 104,261).
In the case of a first acquisition of an own permanent residence by young people up to the age of 35, IMT is only payable if the value on which the tax is levied exceeds € 330,539 (previously € 324,058).
Exemption from IMT, Stamp Tax and fees in the case of transfers of rural properties
An exemption from IMT and Stamp Tax is provided for the transfers of contiguous or adjoining rural properties, irrespective of their economic use, when intended for land consolidation operations.
This exemption is subject to prior recognition before the transfer, upon application by the interested parties to the competent authorities for decision.
An exemption from fees is also provided in respect of all acts and contracts necessary to carry out the said land consolidation operations, as well as the registration of all rights and encumbrances affecting the new rural properties resulting therefrom.
Beyond the State Budget, what other measures are on the horizon?
Alongside the 2026 State Budget Law, several initiatives are underway that include tax measures impacting both individuals and businesses. At PwC, we summarise what is already known to help you stay informed.
Real Estate Transfer Tax - Additional Real Estate Tax - Housing
Within the scope of initiatives aimed at improving access to housing, the following are envisaged:
an increase in IMT on the purchase of residential properties by individuals who are not resident in Portugal, excluding emigrants;
exemption from AIMI for residential properties that are leased for rents of up to € 2,300.
Despite the official announcement, the Bill has not yet been published and, at this stage, it is not possible to determine precisely the terms and conditions of its implementation.
PwC Newsletter: Proposed State Budget Law for 2026
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State Budget 2026 – Everything You Need to Know About the Tax Changes
Follow the tax changes introduced by the Draft State Budget Law for 2026. Have questions? PwC has the answers!
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