Non-resident property tax in Portugal: the 7.5% rule
3 min read · Updated in
In short
If you are not tax resident in Portugal, buying a home here costs a flat 7.5% in IMT. The transfer tax. On the whole price. There are no brackets and no deduction. On a €300,000 flat that is €22,500, against €10,542.04 for a resident buying a main home.
The difference is recoverable, but only two routes exist and both run on a clock that does not stop for you.
Who counts as a non-resident?
Anyone without Portuguese tax residence on the day of the deed. Nationality is irrelevant: a Portuguese citizen living in London is a non-resident, and a British citizen tax resident in Lisbon is not.
Holding a Portuguese tax number does not make you resident. It is an identifier, nothing more, and getting one is the first step of buying. Not a change of status.
What exactly does it apply to?
Urban buildings intended for housing. Rural land stays at 5% and commercial property at 6.5%, whoever buys. Entities based in blacklisted jurisdictions pay 10%.
How do I get the difference back?
Route one: become tax resident in Portugal within 2 years of the purchase, with the property as your main and permanent home.
Route two: let the property as somebody's permanent home for 36 months, consecutive or not, inside a 5-year window, with the first lease signed within 6 months of buying.
Either way, the refund must be claimed within 6 months of meeting the condition. Nobody will tell you the clock has started, and nobody refunds it on their own initiative.
What about a couple where only one of us is resident?
The flat rate applies to the non-resident spouse's share, not to the whole purchase. In a half-and-half acquisition, roughly half the property is taxed at the resident rates and half at 7.5%.
Can I use the under-35 exemption?
No. It requires the property to be your main and permanent home in Portugal, which presupposes residence. Once you become resident you can ask for the correction, but not before.
Are capital gains worse for a non-resident too?
Not any more. The 28% flat rate on non-residents' gains was repealed: a non-resident individual is taxed like a resident, on 50% of the gain at progressive rates. Several calculators still apply the old 28%, and they are wrong by a wide margin.
Worked example
A €300,000 flat, resident against non-resident
- Transfer tax (resident, main home)
- €10,542.04
- Transfer tax (non-resident)
- €22,500.00
- Stamp duty (0.8%). The same either way
- €2,400.00
- Maximum lending (resident main home)
- €270,000
- Maximum lending (non-resident)
- €240,000
- Recoverable difference
- €11,957.96
Source and date
- Article 17(10) to (12) of the Portuguese transfer tax code (Decree-Law 97/2026)
- Circular 40131/2026
Updated in . This page describes the rule in force and is not a substitute for tax or legal advice on a specific case.
Frequently asked questions
7.5% of the full price on housing, with no brackets. On €300,000 that is €22,500.
Yes. What counts is tax residence on the day of the deed, not nationality.
Yes, by becoming tax resident within 2 years or letting the property for 36 months, claiming within 6 months of meeting the condition.
No. The 28% flat rate was repealed; a non-resident individual is taxed on 50% of the gain at progressive rates, like a resident.