Buying a home in Portugal without living here now carries a substantially heavier IMT bill. The housing tax package introduced a flat IMT rate of 7.5% on the purchase of housing by non-residents. For the foreign investor, planning the purchase — or not — can mean a difference of tens of thousands of euros.
What changes, in practice
The purchase of urban buildings intended for housing by non-tax-residents in Portugal becomes subject to a flat 7.5% IMT rate, replacing the normal progressive rates. The measure targets demand from non-residents, not buyers in general.
What is NOT covered
The surcharge applies only to urban housing. Land, commercial property and rural buildings are left out and keep the normal IMT rules. Portuguese emigrants are also excluded, and anyone already tax-resident in Portugal is unaffected.
The two lawful ways to avoid the surcharge
The regime itself provides two alternatives that switch off the 7.5% rate:
- becoming tax-resident in Portugal within 2 years of the purchase; or
- placing the property on the residential rental market at a rent of up to €2,300/month, under a contract signed within 6 months of purchase and keeping it rented for at least 36 months in the first 5 years.
Both require planning and strict compliance with deadlines — missing a condition may trigger the additional assessment of the tax.
Why this is a decision to make before the deed
How you acquire determines the tax you bear. Before buying, it pays to weigh the residency timeline, acquisition through a special-purpose vehicle (SPV), the framing of any intended letting, and coordination with your accountant or tax adviser. Getting this right in advance avoids surprises at assessment and lets you structure the deal efficiently and lawfully.
Buying property in Portugal as a non-resident? Paulo Silva Silva, Lawyer, reviews the tax framing and structures the transaction before signing, in coordination with your tax adviser. Book a meeting or contact geral@advpaulosilvasilva.com · +351 916 055 901.
This article is general in nature and does not constitute legal advice. Decree-Law no. 97/2026, of 20 May, and its effective date should be confirmed in the version in force in the Diário da República before any decision.