IMT for non-residents (foreign buyers) in Portugal (2026)
Updated for May–June 2026 changes
This page reflects Decree-Law no. 97/2026, which introduces a flat 7.5% IMT rate for non-resident buyers of residential property, effective 1 September 2026.
New 7.5% flat rate for non-residents (2026)
Decree-Law no. 97/2026 introduces a flat 7.5% IMT rate on the acquisition of urban residential property (or fractions) by buyers who are not tax-resident in Portugal. It applies without the usual progressive brackets, reductions, or HPP exemptions, and takes effect on 1 September 2026.
You can ask the Tax Authority to cancel the difference between the 7.5% paid and the standard progressive rates if, after the purchase, you either:
- Become a Portuguese tax resident within two years of the acquisition, or
- Allocate the property to moderate-rent long-term housing — sign a residential lease (rent capped at €2,300/month) within 6 months and keep it for at least 36 months during the first 5 years.
The rule is based on tax residency, not nationality — EU and non-EU buyers are treated the same.
How much more do non-residents actually pay?
The 7.5% flat rate isn't always a disadvantage — it depends entirely on the property price. Portugal's standard IMT for residents uses progressive brackets with deductions for lower-priced properties, but switches to flat rates for expensive ones. Understanding where your target property falls can help you budget accurately and decide whether the refund options are worth pursuing.
The three price zones
For secondary/investment properties on the Mainland (the most common scenario for non-resident buyers), the IMT landscape breaks into three distinct zones:
Zone 1: Below €660k
Residents benefit from progressive rates with deductions (1-8% marginal, but effective rates of 3-6%). Non-residents pay a flat 7.5% from the first euro. Impact: 2-4 percentage points higher — the biggest relative hit.
Zone 2: €660k — €1.15M
Residents pay a 6% flat rate (no deduction). Non-residents still pay 7.5%. Impact: exactly 1.5 percentage points higher — translates to €10k-€17k extra depending on price.
Zone 3: Above €1.15M
Both residents and non-residents pay a 7.5% flat rate. The non-resident surcharge has zero effect — you pay exactly the same as a Portuguese tax resident.
Real numbers: resident vs non-resident IMT
This table shows actual IMT amounts for secondary/investment properties on the Mainland. The "Difference" column is what you'd save by becoming tax-resident before buying, or what you can reclaim afterwards through the refund mechanism.
| Property Price | Resident IMT | Non-Resident IMT | Extra Cost |
|---|---|---|---|
| €200,000 | €4,606 (2.3%) | €15,000 (7.5%) | +€10,394 |
| €300,000 | €11,606 (3.9%) | €22,500 (7.5%) | +€10,894 |
| €400,000 | €19,300 (4.8%) | €30,000 (7.5%) | +€10,700 |
| €500,000 | €27,300 (5.5%) | €37,500 (7.5%) | +€10,200 |
| €700,000 | €42,000 (6% flat) | €52,500 (7.5%) | +€10,500 |
| €900,000 | €54,000 (6% flat) | €67,500 (7.5%) | +€13,500 |
| €1,100,000 | €66,000 (6% flat) | €82,500 (7.5%) | +€16,500 |
| €1,200,000 | €90,000 (7.5% flat) | €90,000 (7.5%) | €0 |
| €2,000,000 | €150,000 (7.5% flat) | €150,000 (7.5%) | €0 |
Bottom line for buyers
The new 7.5% rule has the biggest impact in the €200k-€700k range — exactly where most foreign buyers shop for apartments and holiday homes. Expect to pay around €10,000-€11,000 extra regardless of exact price within this band. In the €700k-€1.15M range, the gap widens to €10k-€17k. Above €1.15M, there's no difference at all. If you're planning to relocate to Portugal or rent long-term at moderate rates, the refund mechanism makes this a temporary rather than permanent cost.
Which properties are affected?
The 7.5% flat rate applies only to urban residential property (prédios urbanos destinados a habitação). Land, commercial property, and rural property are not affected — they continue to follow standard IMT rates for all buyers.
Before September 2026
Until 31 August 2026, non-residents pay the same IMT rates as Portuguese residents using standard progressive brackets. The main difference is that non-residents typically cannot claim HPP rates since they won't be permanent residents.
Common pitfalls for foreign buyers
VPT surprises (tax value may exceed purchase price), tight payment deadlines (IMT due before deed), notary and registration requirements, and currency exchange considerations.
- VPT surprises: The tax value can exceed the purchase price, increasing your IMT
- Payment deadlines: IMT must be paid before signing the deed — plan your funds accordingly
- Notary requirements: You'll need a Portuguese tax number (NIF) and possibly power of attorney
- Currency exchange: Factor in exchange rates when budgeting from non-EUR currencies
How to estimate with the calculator
Use the calculator normally. Select 'Secondary residence / Rental' if you won't be a permanent resident. In Advanced mode, enter VPT if known to get the correct tax base.