Portugal has published a law granting the Government 180 days to legislate a set of housing-tax measures. The purpose of this reform is clear: to increase housing supply and improve affordability by shifting incentives toward construction, rehabilitation, and long-term residential letting, while using targeted tax levers to discourage demand patterns seen as inflationary in certain segments.
In this regard, one of the measures consist in the I Property Transfer Tax Increase (IMT) aggravation for non-resident buyers, including the introduction of a flat IMT rate of 7.5% for non-residents purchasing housing. This is not yet the final “IMT law” itself, but it is the legal green light that allows the Government to approve the implementing decree-laws within that time window.
For buyers who are foreign non-resident individuals and have an acquisition planned, the key message is practical: if your deed (escritura) can be anticipated, you may avoid being caught by the future flat rate—especially in mid-range purchases where current IMT tables can be materially lower than 7.5%.
What is being proposed
According to the Government’s proposal (as reported), non-residents buying an urban property or autonomous unit destined for housing would pay IMT “always at 7.5%”, with no exemptions or reductions, however, potentially subject to specific exceptions.
The potential exceptions that might be included in the final law
According to the information collect at the moment, the package includes several carve-outs—important because they shape planning options and, in some cases, may allow refunds in a later stage:
Already being a tax resident in Portugal
(for example, fulfilling the 183 days rule in a 12-month period or other situations foreseen in the IRS Code).
Becoming tax resident within two years from the real estate acquisition date.
Putting the property into residential rental within six months, with rent not exceeding the “moderated rent” (referenced as €2,300/month), and keeping it rented for at least 36 months (consecutive or not) during the first five years.
If (2) or (3) is proven, the possibility of requesting a refund from the Tax Authority shall be foreseen, in the difference between the IMT paid and what would result from the normal IMT tables.
Why timing matters: cost examples (current IMT vs. a flat 7.5%)
(current IMT vs. fixed tax of 7.5%)
Below are illustrative examples using the official IMT practical tables in force from 1 January 2026 (Mainland/Continente) for “Habitação” (Table III) — the table that commonly applies to non-resident purchases that are not treated as “habitação própria e permanente” (primary habitation).
(Stamp Duty at 0.8% exists in both scenarios so the comparison focuses only on the IMT due).
Example 1 — Real Estate purchase price: €300,000
Current IMT:
€300,000 falls in the 7% marginal rate band however has a legal deduction foreseen in the law of €9,394.50
Real IMT due:
(€300,000 × 7%) − €9,394.50 = €11.605,50
Future Flat 7.5% (proposed for non-residents):
IMT = €300,000 × 7.5% = €22.500,00
Difference
under the future law, the buyer would have an additional cost of +€10.894,50.
Example 2 — Purchase price: €500,000
Current IMT:
€500,000 falls in the 8% marginal rate band however has a legal deduction foreseen in the law of €12,699.89
Real IMT due:
(€500,000 × 8%) − €12,699.89 = €27.300,11
Future Flat 7.5% (proposed for non-residents):
IMT = €500,000 × 7.5% = €37.500,00
Difference
under the future law, the buyer would have an additional cost of +€10.199,89.
Example 3 — Purchase price: €1.000,000
Current IMT:
€1.500,000 falls in the 6% marginal rate band with no deduction foreseen in the law
Real IMT due:
€1,000,000 × 6% = €60.000,00
Future Flat 7.5% (proposed for non-residents):
IMT = €1,000,000 × 7.5% = €75.000,00
Difference
under the future law, the buyer would have an additional cost of +€15.000,00.
| Purchase Price | IMT Actual (Progressive Table) | IMT Future Proposal (7.5%) | Difference |
| €300.000 | €11.605,50 | €22.500,00 | €10.894,50 |
| €500.000 | €27.300,11 | €37.500,00 | €10.199,89 |
| €1.000.000 | €60.000,00 | €75.000,00 | €15.000,00 |
Buyer alert: what to prepare for
Check whether you are “non-resident” for tax purposes and whether any exception could realistically apply (especially is there is a planned relocation or a compliant “moderate rent” letting strategy).
Speak with your lawyer immediately about feasibility of bringing the deed date forward (or locking timelines with the seller/developer). The 180-day window granted to the Government for legislative purposes means the new law could arrive sooner than many buyers expect.
If relying on an exception, plan for documentation and cash-flow: the system described seems that will include a refund-by-request, which may imply paying the higher amount upfront.
For non-resident buyers who are already in advanced negotiations, the practical implication is relatively simple: bringing forward the signing of the deed, when commercially and operationally feasible, could allow them to preserve the current results of the progressive property transfer tax tables and avoid the potential transition to the fixed rate of 7.5%.
The cost difference resulting from a fixed rate can have a material impact on the profitability of the investment and should therefore be considered early in the transaction timeline planning, cash flow modeling, and deal completion strategy.
This article does not replace consulting the relevant legislation, nor does it hold Prime Legal responsible.
