Portugal's New IMT Rules for Non-Resident Property Buyers

What happened

Portugal introduced new IMT rules in May 2026 affecting non-residents who acquire residential property.

Under the current rules, the IMT rate is generally 7.5% when the buyer is non-resident and the property is exclusively for residential use. In these circumstances, the usual IMT exemptions and reductions do not apply.

There are, however, specific exceptions. These include buyers who become Portuguese tax residents within two years of the purchase, as well as certain properties placed into qualifying residential rental arrangements that meet the conditions set out in the legislation.

Where the relevant conditions are subsequently met, the Portuguese Tax Authority provides a mechanism through which the buyer can apply for the difference between the IMT originally paid and the amount that would otherwise have applied to be cancelled.

What this means for international buyers

For international buyers, IMT should now be considered earlier in the purchasing process.

Two people buying properties at the same price may face different initial IMT treatment depending on their tax residency and circumstances.

This is particularly relevant for buyers who currently live abroad but intend to relocate to Portugal after purchasing. The legislation allows for becoming Portuguese tax resident within two years of acquisition, subject to the applicable conditions.

Buyers considering a purchase should therefore establish their likely tax position before committing to a property and obtain appropriate professional tax advice for their individual circumstances.

My view

The practical lesson is not simply that non-resident buyers may pay more IMT.

It is that a buyer's plans after the purchase can now have a significant bearing on the eventual tax position. Whether someone intends to remain abroad, relocate to Portugal or use the property in another way should be understood early in the process.

I can help buyers understand where these questions arise during a property search and, where specialist advice is required, connect them with the appropriate professionals.