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

If you are not a Portuguese tax resident, you pay IMT at a flat 7.5% when you buy residential property. The rule was introduced by Decree-Law 97/2026 of 20 May 2026, which added paragraph 10 to article 17 of the IMT Code, and it applies since 25 May 2026. There are no brackets, exemptions or reductions: IMT is 7.5% of the taxable value.

• The rule is based on tax residency at the time of purchase, not nationality — EU and non-EU buyers are treated the same.
• If you have been a Portuguese tax resident before, the flat rate does not apply to you — the normal rates apply from the start.
• It applies to urban property used exclusively for housing (a house or an apartment), whether it will be your main home or a second home. Rustic land (5%) and other urban property such as commercial units (6.5%) follow their own rates.

1. Taxable value (V) = the higher of the price in the deed and the property's tax value (VPT — Valor Patrimonial Tributário) (IMT Code, art. 12(1)).
2. Non-resident buying housing: IMT = V × 7.5%. No brackets and no deduction.
3. Resident buyer: the progressive tables apply. Inside a progressive bracket, IMT = V × marginal rate − deduction (parcela a abater). In the two flat brackets, IMT = V × 6% or V × 7.5%, with no deduction.

Resident tables for the Mainland in 2026 (AT Ofício Circulado 40129/2026). Each bracket covers values above the previous limit, up to and including its own limit.

Main and permanent home (Table I)

Second home or other housing (Table III)

In the Azores and Madeira the resident bracket limits are 1.25 times the Mainland limits (Tables IV to VI of the same circular).

Worked example — €350,000 on the Mainland:

• Non-resident: €350,000 × 7.5% = €26,250.00
• Resident, second home (Table III): €350,000 × 8% − €12,699.89 = €15,300.11
• Resident, main home (Table I): €350,000 × 8% − €13,763.35 = €14,236.65

Worked example — a €350,000 home, non-resident, €245,000 mortgage (a 30% deposit), assuming the price is not below the VPT: 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.

It depends on the price, because the resident scale is progressive while the non-resident rate is flat. Mainland, taxable value = price:

At the prices shown from €200,000 to €700,000, a non-resident pays between €10,199.89 and €10,949.89 more than a resident buying a second home, and between €10,500.00 and €12,013.35 more than a resident buying a main home. In the upper range the gap grows: above €633,931 (second home) or €660,982 (main home) and up to €1,150,853, a resident pays a flat 6% against the non-resident 7.5%, so the difference rises with the price — +€15,000.00 at €1,000,000 and about €17,262.80 at €1,150,853, the largest gap. Above €1,150,853 a resident also pays a flat 7.5%, so there is no difference.

IMT must be paid on the day of the assessment or within the following 30 days, otherwise the assessment lapses (IMT Code, art. 36(1), as amended by Decree-Law 97/2026, applicable since 25 May 2026; before, the deadline was the same day or the first working day after). The deed cannot be signed without proof that IMT has been paid, so in practice it is paid before the deed (escritura). Your lawyer or solicitor normally handles the assessment (Modelo 1) and the 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, the Portugal Mortgage team gives you a full cost breakdown alongside your mortgage proposals, so there are no surprises at the deed.