Houses costing more than one million euros will pay IMT of 7.5%

  • ECO News
  • 16 December 2019

The government has created another IMT layer for properties costing more than one million euros. So far the maximum rate was 6%, from 2020 it will be 7.5%.

Whoever buys a house that costs over one million euros will pay more for The Municipal Tax on Real Estate Transfer (IMT). So far the maximum rate was 6%, by 2020 this ceiling will increase to 7.5%.

According to the preliminary proposal of the State Budget for 2020 (OE2020) to which ECO had access, homes that cost over one million euros will now involve a fee payment of 7.5% to new owners.

So far, the maximum ceiling was 6% for homes that cost more than 574,323 euros but now the executive has set a maximum of one million euros at that level, and homes that exceed this value are now included in the 7.5%.

With secondary and rental housing, this new single rate of 7,5% is also added for purchases over 1 million euros. Thus, the penultimate step provides for a single rate of 6% for buildings costing more than 574,323 euros and up to 1 million euros.

When calculating the IMT value that a person will pay, two values should be used as a reference: the acquisition price of the property and the tax patrimonial value (VPT). However, for the calculation, the highest value should be used.

Last year, the race to buy homes generated a record of almost a billion euros in IMT. This figure hit highs of the last 23 years and was due to transactions made by international investors (13%).