Portugal’s 7.5% IMT for non-resident home buyers: what changed in 2026
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by AdminBabylon Radio
Listen nowPortugal now applies a flat 7.5% IMT property transfer tax to many buyers who are not Portuguese tax residents when they acquire urban property intended exclusively for housing. The change comes from Decree-Law 97/2026 of 20 May 2026, which amended Portugal’s IMT code. It is based on tax residence, not nationality, so an Irish, British, American, French or Brazilian buyer can face the same rule if they are non-resident for Portuguese tax purposes at the time of purchase.
Last verified: 21 September 2026.
Important AT clarification issued in September 2026
Portugal’s Tax and Customs Authority (AT) clarified the 7.5% rule in Ofício-Circulado 40131/2026, dated 4 September 2026. A non-resident individual who had previously been considered Portuguese tax resident under Article 16 of the Personal Income Tax Code falls under the ordinary IMT rates rather than the 7.5% non-resident rate. In co-ownership, each buyer is assessed individually.
For spouses buying under a community-property regime, AT says the 7.5% rate applies only where both spouses are non-resident and neither has previously been considered Portuguese tax resident. AT also confirms that where a purchase was taxed at 7.5% and the buyer, or one spouse in a community-property purchase, becomes Portuguese resident within two years, they can request cancellation and repayment of the excess over the ordinary rates. The request is made through a reclamação graciosa and must be filed within the six-month statutory period after the qualifying event.
These points are an administrative clarification of how Article 17(10) and (11) of the IMT Code apply in specific circumstances. Buyers should still confirm their own position with AT, their notary or a qualified Portuguese tax adviser before completion.
What changed for non-resident property buyers in Portugal?
The new regime adds a 7.5% flat IMT rate for the acquisition of an urban building, or an autonomous unit in one, intended exclusively for housing when the buyer is not tax resident in Portugal. The official Decree-Law 97/2026 forms part of a wider housing-tax package designed to increase housing supply and encourage longer-term, moderately priced rentals.
This matters because resident buyers can still fall within Portugal’s ordinary progressive IMT tables, while a non-resident buyer covered by the new provision initially faces the flat 7.5% charge. Specialist tax analyses read the IMT amendment as applying from 25 May 2026, five days after publication. Because the exact treatment depends on the deed date, property type and buyer’s tax status, anyone completing a transaction should confirm the amount with the Portuguese Tax and Customs Authority, their notary or a qualified adviser before signing.
How much does the 7.5% IMT cost?
The calculation is straightforward when the 7.5% rate applies: multiply the taxable property value by 7.5%. Buyers must also budget for Portuguese stamp duty and other transaction costs.
For illustration, if the purchase price is also the relevant taxable value, a €200,000 home produces €15,000 of IMT. A €300,000 home produces €22,500, while a €500,000 home produces €37,500. Stamp duty on the acquisition is normally 0.8%, which would add €1,600, €2,400 and €4,000 respectively in those examples. Legal, registration, mortgage and other costs are separate.
The practical consequence is that many buyers purchasing before becoming Portuguese tax resident may need substantially more cash available at completion than a resident buyer at the same property price. However, AT’s September 2026 clarification confirms important exceptions, including for buyers who were previously Portuguese tax resident and certain co-ownership or married-couple situations.
Is the 7.5% rate based on nationality?
No. The rule is not based on citizenship or passport. Current Portuguese tax residence is important, but AT’s September 2026 guidance also says prior Portuguese tax residence can matter: a non-resident individual who was previously considered Portuguese tax resident under Article 16 of the Personal Income Tax Code is assessed under the ordinary IMT rates instead of the 7.5% non-resident rate. The position can also differ in co-ownership and community-property marriages.
That distinction is especially important for people planning a permanent move. The timing of establishing Portuguese tax residence relative to a property purchase can materially affect the cash required at the deed stage.
Can a non-resident recover part of the 7.5% IMT?
Potentially, yes. The legislation creates routes under which the difference between the 7.5% amount and the ordinary progressive IMT calculation can be cancelled or recovered when qualifying conditions are met.
One route is for the buyer to become Portuguese tax resident within two years of the acquisition. Another relates to putting the property into qualifying residential rental at a moderate rent for at least 36 months, consecutive or otherwise, within the first five years after acquisition. The details, evidence requirements and rental thresholds matter, so buyers should not assume that a refund is automatic.
Specialist legal and tax analysis of the new Article 17(10) of the IMT code describes the process as paying the 7.5% upfront and then requesting cancellation of the difference once the qualifying condition has been demonstrated. The housing-tax package also contains separate incentives for qualifying moderate-rent housing, so investors need to distinguish the IMT relief from the rental-income rules.
What counts as a “moderate” rent?
For one of the IMT relief routes, the property must be used for residential rental within the statutory moderate-rent conditions. Professional analysis of Decree-Law 97/2026 identifies the broad ceiling for moderate rent as 2.5 times the national minimum monthly wage. With Portugal’s 2026 minimum wage at €920, that produces a €2,300 monthly ceiling for this part of the framework, although other affordable-rental schemes can involve additional local and property-type limits.
Because these thresholds and implementing rules can change, landlords should verify the current requirements before structuring a purchase around the expected tax relief.
Does buying property still give you residency in Portugal?
No. Purchasing residential property is not itself a route to Portuguese residence. Portugal removed real-estate acquisition as a qualifying Golden Visa investment route in 2023. A buyer who wants to live in Portugal needs an appropriate residence basis, such as a work, passive-income, digital-nomad, family or other qualifying immigration route.
What should an overseas buyer do before signing?
First, establish whether you will be Portuguese tax resident on the acquisition date. Second, ask for a written estimate of IMT, stamp duty and other completion costs before committing funds. Third, if you expect to become resident within two years or to use the moderate-rent route, confirm exactly what evidence will be required to recover the IMT difference later.
Buyers should also check whether the property is legally classified for residential use and whether any contractual timetable could change their tax position. A reservation agreement or promissory contract should not be treated as proof that a particular IMT rate is locked in for the final deed.
Why this matters for expats and international investors
Portugal remains attractive to international residents for lifestyle, climate, connectivity and residency options, but the new IMT rule changes the economics of buying before a move. For a €500,000 residential purchase, 7.5% IMT alone is €37,500, before stamp duty and professional fees. That is large enough to affect whether a buyer purchases immediately, rents first while establishing residence, or structures a longer-term rental investment.
The broader lesson is that Portugal’s property and residency decisions should now be planned together rather than treated as separate steps. Tax residence, the purchase date, intended use of the property and immigration status can all affect the eventual cost.
Official sources and further verification
The primary legislation is Decree-Law 97/2026 of 20 May 2026. A subsequent official rectification published on 13 July 2026 confirms that the decree amended IMT rates applicable to non-residents. For practical interpretation, Madeira Corporate Services has published a detailed professional analysis of the new Article 17(10) regime and its relief conditions.
This article is general information, not individual tax or legal advice. Property taxation can depend on the buyer, the property and the exact transaction date. Verify the current position with Portugal’s Tax and Customs Authority or an appropriately qualified professional before completing a purchase.