IMT Tax Exemption for Property Resale in Portugal

To benefit from the IMT exemption, all of the following criteria must be met:

The property must be acquired with a clear and verifiable intention to resell it, within the scope of an economic activity.

The resale must take place within 3 years from the date of the deed. This period is counted from the formal acquisition of the property.

The intention to resell must be explicitly stated in the deed and communicated to the Portuguese Tax Authority.

During the holding period, the property cannot be used for:

• personal residence

• company headquarters or business operations

• any personal, family, or operational use

Any such use invalidates the resale purpose and cancels the exemption.

The exemption only applies when the purchase is part of a profit‑driven resale activity.

• Failure to resell within 3 years: IMT becomes due, plus compensatory interest.

• No company required: sole traders (individual entrepreneurs) may also benefit from the exemption.

• Applies to any type of property: residential, commercial, land, or others, as long as they fall under a resale activity.

• The Tax Authority may request proof of activity: such as the business registration with the appropriate CAE (property purchase and resale).

Imagine purchasing a property for €150,000 with the intention of reselling it.

• The resale intention is declared in the deed.

• The property is resold within 3 years.

Result: no IMT is paid — a tax that could amount to €4,000 to €5,000.

A direct saving that increases profit margins and overall investment return.