Portugal charges non-residents a flat 7.5% property transfer tax

Portugal's flat 7.5% property transfer tax for non-resident housing buyers took effect Sept. 1, 2026, replacing the progressive IMT brackets residents pay and pushing acquisition costs up sharply for foreign purchasers who haven't yet secured tax residency.

The 7.5% flat rate, in real money

The new IMT rate applies to any non-resident individual buying urban residential property in Portugal, regardless of price, under Decree-Law no. 97/2026. Portuguese emigrants living abroad are carved out and keep resident brackets, per PwC's 2026 State Budget commentary.

For a €400,000 ($432,000) apartment in Lisbon, the math shifts hard:

• Resident buyer, own permanent home: IMT applies only above the €106,346 threshold on progressive scales, typically landing in the low tens of thousands.
• Non-resident buyer, same property: a flat €30,000 ($32,400) IMT bill on day one.
• €600,000 ($648,000) purchase: €45,000 ($48,600) in IMT for a non-resident, before notary, stamp duty and registration fees.

The tax is due before the deed is signed and notaries require proof of payment to close, so there's no financing it into the mortgage.

The two escape hatches

Buyers can drop back to resident IMT brackets in two ways, according to DLA Piper and International Tax Review:

• Become Portuguese tax resident within two years of the purchase.
• Lease the property at a moderate rent capped at €2,300 ($2,484) a month, with the unit rented within six months and kept leased for at least 36 months across the first five years.

Properties leased under the €2,300 cap also qualify for exemption from AIMI, the annual wealth tax on higher-value real estate.

What it costs a nomad planning to buy

For a remote worker eyeing a €350,000 ($378,000) flat in Porto while still tax-resident elsewhere, the 7.5% surcharge means roughly €26,250 ($28,350) in transfer tax at signing, compared with well under €10,000 for a resident buying a primary home at the same price. Timing the purchase after establishing tax residency or committing to a capped long-term lease, is now the difference between a five-figure and a lower five-figure entry cost. Anyone weighing the move should factor the two-year residency clock into the broader Portugal relocation math before signing a promissory contract.