Portugal triples housing tax take in a decade

Portugal’s revenue from property transaction taxes more than tripled over the past decade, with the state collecting about €16.8 billion from IMT and stamp duty between 2015 and 2025, according to ECOnews calculations based on municipal financial data. The figures show how the country’s housing boom has become a major source of revenue for both local and central government.

IMT, the municipal tax charged on property purchases, generated €13.7 billion over the period, while stamp duty on transactions added just over €3 billion. In 2025 alone, IMT revenue rose 24% year on year to a record of more than €2.1 billion, while stamp duty brought in €367 million, matching the peak seen in 2022. Together, the two taxes raised €2.51 billion last year, more than three times the level of a decade earlier.

The rise reflects both higher home prices and, over much of the period, stronger transaction activity. The increase came despite government measures aimed at easing the housing crisis, including a public guarantee scheme and tax exemptions for some first-time buyers aged up to 35.

IMT has also become increasingly important for municipal budgets. According to the 2024 Portuguese Municipal Finance Yearbook, IMT exceeded revenue from the annual municipal property tax in 2024, reaching 115.2% of that tax’s value, compared with 33.2% in 2014. The tax now accounts for 42.4% of all tax revenue collected by municipalities, roughly double its share a decade earlier.

The government expects that trend to continue. Portugal’s 2027 draft budget forecasts a “particularly favourable” performance for local tax revenue, supported by real estate-related taxes, with IMT revenue expected to rise by more than 4% this year.

Originally published at Eco.pt