IMT & property taxes in Portugal — the 2026 non-resident guide

If you are not a Portuguese tax resident, you pay a flat IMT rate of 7.5% on a residential property purchase. Introduced by Decreto-Lei 97/2026 and already in force, it replaces the usual progressive scale — no lower brackets, deductions or own-home reductions by default.

• The rule is based on tax residency, not nationality — EU and non-EU buyers are treated exactly the same.
• It applies to urban residential property. Land, commercial property and rural buildings follow the normal rates.

Worked example — a €350,000 home, non-resident, €245,000 mortgage: IMT 7.5% = €26,250 · purchase stamp duty 0.8% = €2,800 · mortgage stamp duty 0.6% = €1,470 → total purchase taxes ≈ €30,520, on top of your down payment, notary and registration costs.

IMT and the 0.8% stamp duty are charged on the higher of two figures: the price you pay, or the property's official taxable value (VPT — Valor Patrimonial Tributário) registered with the tax authority. If the VPT is higher than your price, tax is calculated on the VPT — so it's worth checking it before you commit.

Yes — the extra cost can be temporary rather than permanent. You can ask the tax authority to cancel the difference between the 7.5% you paid and the normal resident rates if, after buying, you either:

1. Become a Portuguese tax resident within two years of the purchase, or
2. Let the property under a moderate-rent contract — rent up to €2,300/month, signed within 6 months and kept in place for at least 36 months during the first 5 years.

The refund request is made to the tax authority within six months of becoming resident or signing the qualifying lease.

The flat rate has its biggest relative impact in the €200k–€700k range — typically €10,000–€11,000 extra. Above roughly €1.15M, a resident pays the same 7.5% anyway, so there is no difference at all.

IMT must be settled before the deed (escritura), and you now have up to 30 days from the assessment to pay — a recent easing of the old same-day rule. Your lawyer or solicitor normally handles the assessment (Modelo 1) and payment as part of completion.

• VPT surprises — if the registered value exceeds your price, your tax goes up. Check it early.
• Payment timing — IMT is due before the deed, so the funds must be in place in time.
• You'll need a Portuguese NIF — and possibly a power of attorney if you're completing remotely.
• Currency — if your funds are in another currency, factor exchange-rate movement into your budget.

Use our live 2026 buying-costs calculator — enter the price, your buyer status, the region and whether you're financing, and it returns IMT, both stamp duties and the total cash needed. For your specific purchase, your Portugal Mortgage adviser gives you a full cost breakdown alongside your mortgage proposals, so there are no surprises at the deed.