In short
Since Decree-Law No. 97/2026, the purchase of an urban building or unit used exclusively for housing by a non-resident for tax purposes pays IMT at a flat 7.5% rate, with no exemption or reduction (IMT Code, Article 17(10)). It does not apply to buyers who are already Portuguese tax residents. The buyer can recover the difference to the normal rate by becoming a tax resident within two years or by letting the property as a home at a rent of up to 2.5 times the 2026 monthly minimum wage, with a lease signed within six months and at least 36 months of letting in the first five years. Recovery requires an application to the Tax Authority within six months (Article 17(11) and (12)).
For buyers without Portuguese tax residence, IMT on a home is no longer progressive. A EUR 500,000 purchase that would pay about EUR 27,300 under the standard table now pays EUR 37,500. The difference can be recovered, but only in two ways, with short deadlines and an express application. Buyers who do not plan ahead pay the higher rate and do not get it back.
Who pays the 7.5% rate
Article 17(10) of the IMT Code applies the 7.5% rate where three conditions are met at the same time:
- the purchase is of an urban building or unit used exclusively for housing;
- the buyer is non-resident;
- none of the exceptions in points (a) to (c) applies.
Purchases of building land, rural property and non-residential property such as shops or offices are outside this rule and follow the normal rates. So are buyers who have already been treated as Portuguese tax residents under Article 16 of the IRS Code (point (a)). The 10% rate for buyers domiciled in low-tax jurisdictions still prevails (Article 17(4)).
What it costs: comparison with the standard table
The comparison is with the table in Article 17(1)(c) (housing that is not the buyer’s permanent home), which applies to a resident buying as an investment:
| Purchase price | IMT under the standard table (point (c)) | IMT at 7.5% (non-resident) | Difference |
|---|---|---|---|
| EUR 300,000 | EUR 11,605.49 | EUR 22,500.00 | EUR 10,894.51 |
| EUR 500,000 | EUR 27,300.03 | EUR 37,500.00 | EUR 10,199.97 |
| EUR 800,000 | EUR 48,000.00 | EUR 60,000.00 | EUR 12,000.00 |
| EUR 1,000,000 | EUR 60,000.00 | EUR 75,000.00 | EUR 15,000.00 |
| EUR 1,500,000 | EUR 112,500.00 | EUR 112,500.00 | EUR 0 |
Above EUR 1,150,853 the standard rate is already 7.5%, so the surcharge has no effect. The taxable value is the higher of the price and the tax registration value (Article 12(1)). Stamp duty of 0.8% is also due on the purchase.
The two ways to recover the difference
| Route | Condition | Deadline | Provision |
|---|---|---|---|
| Becoming a tax resident | Acquire Portuguese tax residence under Article 16 of the IRS Code | Two years from the date of purchase | IMT Code, Art. 17(10)(b) |
| Letting as a home | Monthly rent up to 2.5 times the 2026 monthly minimum wage; letting for at least 36 months, consecutive or not, in the first five years | Lease signed within six months of the purchase | IMT Code, Art. 17(10)(c); DL 97/2026, Art. 2(2)(a) |
| Application to cancel the difference | Application to the Tax Authority, which cancels the difference between the tax paid and the tax at the normal rates | Six months from becoming resident or from the lease | IMT Code, Art. 17(11) and (12) |
The mechanism is a refund: 7.5% is paid at completion, and the difference is only cancelled once residence or the lease has been established, at the buyer’s request. A buyer who becomes resident but does not apply within six months risks losing the refund.
Planning before completion
- Tax residence timetable. If the move to Portugal is certain, consider whether residence can be acquired before completion, which removes the surcharge from the outset (point (a)).
- Intended letting. Check that the planned rent fits the limit and that a lease can be signed within six months, allowing for works and furnishing.
- Purchase structure. Buying through a company has its own IMT and tax rules and should be assessed before signing. See buying in your own name or through a company.
- Evidence and deadlines. Keep proof of residence or of the lease and file the cancellation application within six months.
Frequently asked questions
How much IMT does a non-resident pay when buying a home in Portugal?
A flat 7.5% on the property value, with no exemptions or reductions, when buying an urban building or unit used exclusively for housing (IMT Code, Article 17(10)). The taxable value is the higher of the price and the tax registration value (Article 12(1)).
Does the 7.5% rate apply to land, shops or offices?
No. The rule only covers the purchase of an urban building or unit used exclusively for housing (IMT Code, Article 17(10)). Other property follows the normal rates in the same article.
How can I recover the extra IMT?
By becoming a Portuguese tax resident within two years of the purchase, or by letting the property as a home, at a rent within the legal limit, under a lease signed within six months and kept for at least 36 months in the first five years. In both cases you must apply to the Tax Authority to cancel the difference within six months (IMT Code, Article 17(10) to (12)).
What is the rent limit to avoid the surcharge?
Two and a half times the monthly minimum wage set for 2026 (Decree-Law No. 97/2026, Article 2(2)(a), referred to in IMT Code, Article 17(10)(c)). The limit may be updated by ordinance (Article 2(3) of the same decree-law).
Does a Portuguese emigrant pay 7.5%?
It depends on tax residence, not nationality. Non-residents for tax purposes are covered, unless they have already been treated as residents under Article 16 of the IRS Code or become resident within two years (IMT Code, Article 17(10)(a) and (b)).
Since when does the 7.5% rate apply?
The consolidated IMT Code states that the amendment to Article 17 made by Decree-Law No. 97/2026 has been in force since 25 May 2026.
The firm assists non-resident buyers from the promissory contract to completion and plans the tax residence or letting that allows IMT to be recovered. Book a meeting.
Read also
Property taxes in Portugal: IMT, stamp duty, IMI and AIMI · Buying property through a company or in your own name · Real estate lawyer in Cascais and Oeiras
Sources
Official Portuguese Gazette (Diário da República), consolidated versions; links checked on 18 October 2026. Always confirm the version in force on the date of your decision.
General information, updated on 18 October 2026. It does not replace an analysis of the specific case and is not legal advice.