Lisbon, Oct. 8, 2026 (Lusa) - The draft State Budget for 2027 updates the IMT brackets by 2.3%, increasing the tax-exempt value for young people's properties by around €7,600 to €338,141.

The next bracket still covered by the Youth Property Transfer Tax (IMT Jovem), which applies at an 8% rate, rises from €660,982 to €676,185, according to the budget proposal tabled in parliament on Thursday.

The IMT Jovem scheme came into force on 1 August 2024, providing a total exemption from this tax, stamp duty and registration fees for properties valued at up to €316,000 – a figure that rose to €330,539 at the start of this year.

Where the exemption threshold is exceeded, the Municipal Tax on the Transfer of Property (IMT) applies at a marginal rate of 8% up to the sum of €676,185. Above this amount, the full IMT and Stamp Duty (IS) apply.

Next year, a house costing €600,000 will be subject to 0% IMT and Stamp Duty up to €338,141, and an 8% tax rate on the portion between this amount and the purchase price.

For buyers not covered by this measure (because they are over 35 or already own a residential property), the 2027 State Budget also introduces changes, with an IMT exemption applying to the purchase of a property valued at up to €108,792.

The IMT rate in force until the end of this year has been increased by 2%, and the exemption threshold is set at €106,346.

IMT applies to the purchase and sale of property, regardless of whether it is new or second-hand, and also applies in the event of a property swap, the granting of a right of usufruct or the transfer of the buyer's contractual position.

IMT rates vary depending on whether the property is intended as the owner's permanent residence or for other purposes; the tax rules stipulate that it is calculated on the higher of the transaction amount or the property's taxable value.

CT/ADB // ADB.

Lusa