What is Stamp Duty (Imposto do Selo) and how much do you pay when buying a home?

What is Stamp Duty?

Stamp Duty (Imposto do Selo) is the oldest tax in the Portuguese system and one of the most wide-ranging: it applies to a long list of acts, contracts and documents¹. The rates are set in the General Stamp Duty Table (TGIS), annexed to the Stamp Duty Code (CIS). Each line of the table (called a "verba" / item) corresponds to an act and its rate.

The case most people meet is buying a home. That is what this article (and our Stamp Duty calculator) focuses on, although further down we also list the other common cases.

The two stamp duties of buying a home

Buying a property means paying Stamp Duty on two fronts, both at the deed¹:

1. Duty on the acquisition (item 1.1), 0.8% on the higher of the deed price and the property’s taxable value (VPT). This is the same base as IMT.
2. Duty on the credit (item 17.1), if you buy with a mortgage, you also pay duty on the amount financed, at a rate that depends on the loan term.

A cash buyer, with no credit, pays only the 0.8% acquisition duty.

The credit duty rates

The duty on the credit depends on the term¹:

• Term of 5 years or more → 0.60% (the normal mortgage case).
• Term between 1 and 5 years → 0.50%.
• Term under 1 year → 0.04% per month or fraction.

Since a mortgage almost always runs 25–40 years, the 0.60% rate applies to the amount borrowed. This duty is charged once, by the bank, when the credit is contracted.

What value is it charged on?

The acquisition duty is charged on the higher of two values¹:

• the price declared in the deed (the purchase value);
• the property’s VPT, which appears on the caderneta predial (tax register).

In practice the purchase price is usually above the VPT, so the duty is almost always charged on the price. But if the VPT is higher, the VPT is the base, exactly as with IMT. Enter both in the calculator and it uses the higher.

Worked example

Imagine buying a home for €250,000 (with a lower VPT), financed with a €200,000 mortgage over 30 years:

• Acquisition duty = €250,000 × 0.8% = €2,000.
• Credit duty = €200,000 × 0.6% = €1,200.
• Total Stamp Duty = €3,200.

On top of this comes IMT, which is a separate tax, see how IMT is calculated and estimate it in the IMT calculator.

Stamp Duty and IMT: not the same thing

A common mix-up. Both are paid before the deed, but they are different taxes:

• IMT has progressive bracket rates and can be exempt on an own permanent home up to €106,346 in 2026 (more, under IMT Jovem).
• The acquisition Stamp Duty is always 0.8%, with no exemption for most purchases.

Add the two for the total tax cost of the deed. After buying, you then pay IMI every year, see how IMI is calculated.

What about the other Stamp Duty cases?

Buying a home is just one of many items in the TGIS. Other common cases¹:

• Rental (item 2): 10% on one month’s rent (at the start of the contract).
• Inheritances and gifts (item 1.2): 10%, but the spouse, descendants and ascendants are exempt (paying only, for property, the 0.8% on the transfer).
• Guarantees, promissory notes and bills, bank interest and fees: each has its own item and rate.

Those cases are not part of our calculator, which focuses on the cost of buying a home. If you are buying with a loan, see also the mortgage payment.