IMT: is it charged on the price or on the VPT?

Why there are two values

The price is what buyer and seller agree on. The VPT — valor patrimonial tributário — is the value the Tax Authority gives the property for tax purposes, by the formula in article 38 of the IMI Code: the base value of built property, the area, the use, the location, quality and comfort, and age. It does not follow the market.

In most purchases the VPT is below the price, and the tax is worked out on the price. It ends up above when a home changes hands for less than it is worth on paper: a sale within the family, a rushed sale, a run-down property, an area where prices fell after the valuation.

Where to find the VPT

In the property's caderneta predial, in the field for the valor patrimonial tributário. The seller downloads it from the Portal das Finanças. Ask for it before you settle the price: that is when the difference can still be negotiated.

Stamp duty follows the same base

Stamp duty on the purchase is 0,8 % and applies to the same value as IMT: article 9 of the Stamp Duty Code says the base is set by the rules of the IMT Code.

If the VPT is higher than the price

The VPT then also decides the band of the table (article 17 of the IMT Code) and the exemption limit for buyers aged thirty-five or under (article 9 of the IMT Code): both apply to the value the tax is worked out on. A price inside the limit is not enough if the VPT is above it.

The VPT is not up for discussion at the deed. If it is out of date, the owner can file a complaint against the register (article 130 of the IMI Code); if the value came from a direct valuation, only after three years. And a new valuation can come out lower or higher.

Work out your own case

In the IMT calculator, enter the price and the VPT. It takes the higher of the two and tells you which one it used.