Accounting for real estate companies.

Accounting for real estate companies in Porto

Who is it for?

Property buying and selling firms, property developers, construction and refurbishment companies, companies that let out their properties, estate agents and property consultants. This is the sector with the most companies in our portfolio.

Purchase for resale: the IMT exemption is time-limited

The purchase of a property for resale is exempt from IMT, provided that the company has declared, prior to the purchase, that its business activity involves the purchase of buildings for resale (Article 7 of the IMT Code). However, the exemption ceases to apply if the property is not resold within one year, if it is put to another use or resold — in which case the IMT is payable from the date of purchase, with compensatory interest (Article 11). The deadline was three years, until 2023.

Anyone who does not yet carry out this activity on a regular basis pays the IMT on purchase and applies for a refund after resale. From July 2025, regularity must be proven by means of a certificate from the Finance Portal showing resales in each of the two preceding years. Stamp duty on the purchase is always payable.

That is why the timetable for the building works and the sale forms part of tax planning: a project that drags on could cost the entire IMT.

Property is part of the estate, not an asset

Properties purchased for resale are held in inventory: the purchase cost, the property transfer tax paid, building works and project costs are added to the value of the property and are only recognised as an expense when it is sold. A property that is let or used by the company is an asset; it depreciates and, when sold, generates a capital gain. Incorrect classification affects the profit for each year.

VAT: VAT-exempt sale, works subject to VAT

The sale of property is, as a general rule, exempt from VAT, and those who sell only exempt property cannot reclaim VAT on building works. Renovation works in urban regeneration areas and certain types of housing works are subject to VAT at 6% — further details can be found in the article on the VAT on urban regeneration. In the case of construction works carried out on a contract or subcontract basis, the reverse charge mechanism generally applies: it is the purchaser who accounts for the VAT.

Estate agency

Mediation commissions are subject to VAT at 23%. For self-employed estate agents, commissions are subject to withholding tax even if they are below €15,000 per year — the exemption from withholding tax does not apply to brokerage commissions.

Selling or contributing property to a company

Anyone who owns property in their own name and is thinking of transferring it to a company, or selling it, should work out the figures first: capital gains tax, property transfer tax and stamp duty all depend on how the transaction is carried out. See the article on to use a property as share capital and property capital gains calculator.

How we work

1. Property by property. Each property has its own record: purchase details, taxes, building works and deadlines, so you can check the cost and the expiry date of the exemption at any time.
2. Before you buy. We have confirmed the business registration and classification to ensure there are no surprises in the deed.
3. Every month. Postings, VAT and bank reconciliation, with documents from the client department.
4. At the end of the year. Inventories, Form 22 and IES.

The accounts and tax returns are signed by a Certified Accountant registered with the Institute of Certified Accountants (see Legal information). The rules described here are those for 2026; the classification of each case is always confirmed at the first meeting.

Frequently asked questions

How long do I have to resell the property without paying IMT?

One year from the date of purchase, in accordance with Law No. 56/2023. If the property is not resold within that period, the IMT is payable from the date of purchase, with interest.

Is the IMT exemption automatic?

This applies only to those who can prove their regular business activity using the certificate from the Finance Portal (resales in each of the two previous years). Everyone else must pay and then apply for a refund after reselling.

Can I reclaim the VAT on the building work?

Only if the final transaction is subject to tax. In the case of a VAT-exempt sale of a residential property, the VAT on the building works is treated as a cost — which is why the 6% rate for refurbishment makes a difference.

Does a company set up solely to let property have its own rules?

It may be a simple asset management company and fall under the tax transparency regime, depending on who the partners are. This is set out in the articles of association.

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