Portugal’s 7.5% IMT for Non-Residents: What Property Buyers Need to Know in 2026
Portugal has introduced an important change to the Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) paid when residential property is purchased by non-residents.
Under the rules introduced by Decreto-Lei n.º 97/2026, a flat IMT rate of 7.5% now generally applies when a non-resident acquires an urban property or autonomous unit intended exclusively for residential use.
For international buyers considering a home in Portugal, this can represent a significant additional acquisition cost. However, the rule is more nuanced than the headline suggests. There are important exceptions for people who have previously been Portuguese tax residents, buyers who move to Portugal after purchasing and, in certain circumstances, properties placed on the residential rental market.
The Portuguese Tax Authority (Autoridade Tributária e Aduaneira — AT) issued further guidance on 4 September 2026, clarifying how these rules should be applied to individual buyers, co-owners and married couples.
This guide explains what international property buyers should know before completing a purchase in Portugal.
What Is IMT?
IMT is the Portuguese municipal tax charged when ownership of real estate is transferred.
The amount payable normally depends on factors including the taxable value of the property, its intended use and the type of property being acquired.
For residential property, Portugal traditionally uses progressive IMT bands up to certain values, after which single rates apply.
The new regime changes this calculation significantly for many buyers who are not Portuguese tax residents at the time of acquisition.
What Changed for Non-Resident Property Buyers in 2026?
Article 17 of the Portuguese IMT Code now provides that the IMT rate is generally 7.5% when:
The property is an urban property or autonomous unit;
It is intended exclusively for residential use; and
The purchaser is a non-resident for Portuguese tax purposes.
Unlike the normal progressive residential IMT system, the 7.5% rate is applied as a single rate and, where the rule applies, the normal exemptions and reductions do not apply.
It Is Tax Residency, Not Nationality That Matters
This distinction is particularly important for international buyers.
The legislation does not simply impose a special tax on foreigners.
The determining factor is Portuguese tax residency.
For example:
A British, Dutch, French or American citizen who is already a Portuguese tax resident is not automatically subject to the non-resident 7.5% rule.
A Portuguese citizen who lives abroad and is non-resident for Portuguese tax purposes may potentially fall within the rule.
A foreign national who is currently non-resident but was previously a Portuguese tax resident may qualify for an important exception.
This is one reason buyers should establish their tax status before calculating the true cost of purchasing a property.
How Much Difference Can 7.5% IMT Make?
The effect becomes particularly noticeable as property values increase.
The following examples compare the 7.5% non-resident rate with the ordinary 2026 IMT calculation for residential property that is not treated as habitação própria e permanente (primary permanent residence).
Note: Illustrative examples based on the 2026 ordinary residential IMT rates and assuming the taxable value corresponds to the stated purchase value. The actual tax calculation depends on the individual transaction and circumstances of the buyer.
For someone buying a €1 million property, the difference could therefore be approximately €15,000.
This makes IMT an important part of the budget that should be considered alongside the property price itself.
Previously Lived in Portugal? There Is an Important Exception
One of the most important, and perhaps least understood, provisions concerns people who are currently non-resident but have previously been considered Portuguese tax residents.
Article 17 of the IMT Code provides an exception where the purchaser has previously been considered resident in Portugal for tax purposes under Article 16 of the Portuguese IRS Code.
The September 2026 guidance from the Tax Authority reinforces this interpretation.
In practical terms, someone who currently lives abroad but previously had Portuguese tax residency should not automatically assume that the 7.5% rate applies.
Their previous Portuguese tax residence may allow the acquisition to be taxed under the ordinary IMT rules instead.
What If You Buy First and Move to Portugal Afterwards?
This is another particularly relevant provision for property buyers planning relocation or retirement.
A buyer who is non-resident when purchasing may initially pay the 7.5% IMT rate.
However, if that buyer becomes a Portuguese tax resident within two years of the property acquisition, the legislation provides a mechanism allowing the buyer to request that the excess IMT be cancelled and the difference compared with the applicable ordinary rates refunded.
The request must generally be submitted to the Portuguese Tax Authority within six months of becoming Portuguese tax resident.
This means the sequence:
can produce a different final IMT result from that of someone who remains permanently non-resident.
Buyers planning to move should therefore discuss the timing of residency with a qualified Portuguese tax adviser before completing the transaction.
What Happens When a Married Couple Buys?
The Tax Authority's September 2026 clarification is particularly important for couples because the result can depend on the matrimonial property regime.
Married Under a Separation of Property Regime
Where the acquisition is effectively assessed individually, including situations involving a married buyer under a separation of property regime, the residency history of the individual purchaser is considered.
A buyer who is non-resident and has never previously been Portuguese tax resident will generally fall within the 7.5% rule.
If that individual has previously been resident in Portugal for tax purposes, the exception may instead allow the normal rates to apply.
Buying in Co-Ownership
When several people purchase a property in co-ownership, the Tax Authority has clarified that each purchaser's position should be considered separately.
This can create situations where the tax treatment of one buyer's share differs from that of another buyer's share because their residency histories are different.
Married Under a Community Property Regime
The position is different when a property becomes common property of a married couple under a community property regime.
The AT has clarified that the 7.5% rate should apply where:
Both spouses are non-residents; and
Neither spouse has previously been considered Portuguese tax resident.
Consequently, the previous tax-residency history of just one spouse can potentially change the IMT treatment of the acquisition.
This is a significant clarification for international couples buying a property together in Portugal.
What If One Spouse Moves to Portugal After the Purchase?
The September clarification also addresses couples who acquire property while non-resident and subsequently establish Portuguese tax residency.
Where the relevant conditions are satisfied, becoming resident within the two-year period may allow a request for adjustment of the IMT previously paid at 7.5%.
Because marital property regimes and ownership structures can materially affect the tax calculation, couples should establish their position with their lawyer or tax adviser before completing the purchase.
There Is Also an Exception for Certain Residential Rental Properties
The legislation provides another potential route out of the 7.5% regime where the property is placed on the qualifying residential rental market.
Broadly, the legislation requires the property to:
Be placed into residential rental within six months of acquisition;
Comply with the applicable limits for qualifying moderate residential rent; and
Be rented for at least 36 months, consecutive or otherwise, during the first five yearsfollowing acquisition.
Where the statutory requirements are met, the buyer can request adjustment of the tax and repayment of the difference between the 7.5% initially paid and the IMT that would otherwise have applied.
This exception is subject to detailed conditions and should not be assumed to apply to ordinary holiday rentals, short-term letting or Alojamento Local.
Can You Simply Change Your Tax Residence on Paper?
No. Portuguese tax residency is determined according to the rules of the Portuguese IRS Code and must reflect the buyer's actual circumstances.
A property purchase should therefore not be structured around an artificial change of address simply to obtain a lower IMT rate.
Buyers genuinely relocating to Portugal should coordinate their property purchase, residency registration and tax position with qualified advisers.
Why This Matters for Portugal Property Buyers
International buyers often begin their property search by establishing a maximum purchase budget.
But the purchase price is only part of the capital required to complete the transaction.
A buyer considering a property at €500,000, €750,000, or €1 million should understand the applicable IMT treatment before deciding how much of their available capital can realistically be allocated to the property itself.
This is particularly important for buyers who:
Currently live outside Portugal;
Intend to relocate after completing the purchase;
Previously lived in Portugal;
Are purchasing with a spouse;
Have different residency histories from their spouse or co-owner;
Intend to place the property into long-term residential rental.
Plan the Purchase Before Signing
The legal and tax process is an important part of buying property in Portugal.
Before signing a promissory contract or committing to a purchase, international buyers should understand not only the property price but also the taxes, legal costs, financing requirements and transaction structure that may apply.
Our guide to the legal requirements and property buying process in Portugal explains the wider acquisition process in more detail.
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Frequently Asked Questions
Do all foreign buyers now pay 7.5% IMT in Portugal?
No. The rule is based on Portuguese tax residency rather than nationality. A foreign citizen who is already Portuguese tax resident does not fall within the rule merely because they are foreign. There are also exceptions for some non-residents.
Does a Portuguese citizen living abroad pay the 7.5% rate?
Potentially. Portuguese nationality by itself does not prevent the rule from applying. The relevant issue is the purchaser's Portuguese tax-residency position and whether one of the statutory exceptions applies.
I previously lived in Portugal. Will I still pay 7.5% IMT?
Not necessarily. The IMT Code contains an exception for a purchaser who has previously been considered Portuguese tax resident. This should be verified before the transaction with the professionals handling the purchase.
What happens if I move to Portugal after buying?
If you become a Portuguese tax resident within two years of purchasing, you may be entitled to request adjustment of the IMT and repayment of the difference between the 7.5% paid and the tax calculated under the applicable ordinary rates. The statutory deadline for making the request must also be observed.
Does the rule apply differently to married couples?
It can. The September 2026 guidance from the Portuguese Tax Authority clarifies that the result may depend on the couple's matrimonial property regime and the tax-residency history of each spouse.
Can buying the property for rental avoid the 7.5% rate?
Certain qualifying long-term residential rental situations are covered by an exception, but strict conditions apply regarding the rent level, the period within which the property must be rented and the duration of the rental. Ordinary short-term holiday letting should not be assumed to qualify.
Is the 7.5% rate applicable to every type of property?
No. The provision discussed in this article concerns urban property or autonomous units intended exclusively for residential use. Different IMT rules can apply to rural land, commercial property and other types of acquisition.
Important Note
This article provides general information based on Portuguese legislation and Tax Authority guidance available in September 2026. It does not constitute legal, tax or financial advice. IMT treatment depends on the circumstances of the purchaser, ownership structure, tax residency, intended use of the property and other factors. Buyers should obtain independent advice from a Portuguese lawyer, tax adviser or accountant before completing a property transaction.
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