IMT for Non-Residents: What Has Changed?
IMT is the tax payable on the purchase of real estate located in Portugal and represents one of the main costs associated with acquiring residential property.
Following the legislative changes introduced in 2026, purchasers who are not tax residents in Portugal are now subject to a specific tax regime when acquiring residential property.
As a general rule, the new legislation applies a flat IMT rate of 7.5%, replacing the progressive tax rates normally applicable to Portuguese tax residents and, in most cases, removing access to the exemptions or reduced rates available under the general regime.
This represents a significant change for foreign investors and individuals wishing to acquire residential property in Portugal.
Are There Any Exceptions?
Yes.
Although the 7.5% flat rate generally applies, the legislation provides several situations in which purchasers may benefit from a more favourable tax treatment.
The main exceptions include:
- Where the purchaser becomes a Portuguese tax resident within two years of acquiring the property.
- Where the property is used for residential letting, provided the legal requirements are met, including the deadlines for making the property available on the rental market and the minimum rental period.
In these circumstances, taxpayers may apply for a refund of the difference between the IMT initially paid and the amount that would have been payable under the general tax rules.
These measures are intended to encourage new residents to settle in Portugal and to increase the supply of residential rental properties.
What Is the Purpose of These Measures?
The new rules form part of a broader package of public policies designed to address the current challenges facing the Portuguese housing market.
Their main objectives include:
- increasing the supply of housing;
- encouraging long-term residential rentals;
- reducing pressure on the property market;
- improving access to housing for residents;
- promoting greater tax fairness between different categories of property purchasers.
At the same time, Portugal aims to remain an attractive destination for international investment by encouraging acquisitions that contribute positively to the housing market.
What Should Non-Residents Consider Before Buying Property?
Anyone planning to purchase property in Portugal should carefully assess the tax implications before completing the transaction.
Without proper tax planning, buyers may incur unnecessary tax costs or lose access to tax benefits that could otherwise be available if the legal requirements are fulfilled.
Before completing the purchase, buyers should consider:
- their tax residency status;
- the intended use of the property;
- the possibility of becoming a Portuguese tax resident in the future;
- the requirements for claiming an IMT refund;
- the tax implications regarding IMI (Municipal Property Tax), Personal Income Tax, Corporate Income Tax and Stamp Duty.
Proper tax planning helps structure the transaction efficiently and minimise unnecessary tax costs.
Conclusion
The new IMT rules for non-residents represent one of the most significant recent tax changes affecting the Portuguese real estate market.
Although the introduction of the 7.5% flat rate may increase the initial acquisition cost for many international buyers, the available exemptions and refund mechanisms demonstrate the legislator’s intention to encourage those who contribute to permanent housing or increase the supply of rental accommodation.
Given the complexity and continuous evolution of Portuguese tax legislation, obtaining professional tax advice is essential to ensure the correct tax treatment of each transaction and maximise tax efficiency.
How Can Nominaurea Help?
At Nominaurea, we assist both domestic and international clients throughout every stage of acquiring property in Portugal.
Our services include analysing the tax implications of each transaction, providing tax planning advice, identifying available tax reliefs, preparing the necessary documentation, and assisting with procedures before the Portuguese Tax Authority.
If you are considering investing in Portugal or purchasing property with complete tax confidence, our experienced team is ready to provide personalised, professional and reliable support tailored to your specific needs.
