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- Tax, Live in Portugal
Buying Property in Portugal as a Non-Resident: IMI and Property Taxes Explained
🌍 Can Non-Residents Buy Property in Portugal?
Yes. There are no restrictions on foreigners or non-residents buying property in Portugal. You’ll need:
- A Portuguese tax number (NIF)
- In many cases, a Portuguese bank account
- A tax representative or adherence to electronic notifications, depending on your situation
💶 Taxes When You Buy
IMT – Property Transfer Tax
- Calculated on the higher of the purchase price or the VPT.
- ⚠️ New since 25 May 2026: non-residents buying a property intended exclusively for housing pay a single IMT rate of 7.5%, regardless of the value, with no exemptions or reductions (Decree-Law 97/2026).
- Exceptions: the normal rates apply if you were ever a Portuguese tax resident before. For married couples under community of property, the 7.5% only applies if both spouses are non-resident and neither was ever resident.
- Refund: if you become a Portuguese tax resident within two years of the purchase, you can request a refund of the difference compared with the normal rates (it’s not automatic).
- Other urban properties (such as those registered for services or commerce): 6.5%; rural properties: 5%.
- Buyers domiciled in tax havens: 10%, regardless of the value.
Stamp Duty (Imposto do Selo)
- 0.8% on the purchase, also on the higher of the price or the VPT.
- If you take out a mortgage, there’s also Stamp Duty on the loan amount.
Other costs: notary or lawyer fees, land registry fees and, if applicable, bank fees.
🏠 IMI for Non-Residents: The Annual Property Tax
Here’s the good news: as a general rule, non-resident individuals pay IMI at the same rates as residents:
- Urban properties: between 0.3% and 0.45% of the VPT, depending on the municipality
- Rural properties: 0.8%
There’s no surcharge for simply being non-resident. However, there are some differences:
- No permanent home exemption: the three-year IMI exemption for permanent homes (VPT up to €125,000) only applies to your own permanent home in Portugal — so it generally doesn’t apply to non-residents.
- No IMI Familiar discount: the discount for families with dependants applies to the permanent home, so it generally doesn’t apply either.
- Vacant properties: if the property is unoccupied for more than a year, some municipalities can apply higher rates — though there are exceptions, for example for second homes that are actually used.
⚠️ Tax Havens: The 7.5% IMI Rate
This is where things change significantly. If the owner is domiciled in a country, territory or region with a clearly more favourable tax regime — a tax haven on Portugal’s official blacklist — the IMI rate is 7.5% of the VPT every year, instead of 0.3%–0.45%.
- The Portuguese Tax Authority has stated, in binding rulings, that this rate also applies to individuals domiciled in blacklisted jurisdictions — not only to companies.
- It can also apply to properties held through companies controlled (directly or indirectly) by people or entities domiciled in tax havens.
- Some tax advisers disagree with this interpretation — but it’s the Tax Authority’s current position.
Example: a property with a VPT of €300,000:
- Owner resident in the UK or the US: around €900 to €1,350 per year (0.3%–0.45%)
- Owner domiciled in a blacklisted territory: €22,500 per year (7.5%)
The blacklist includes jurisdictions such as Andorra, the Bahamas, Bermuda, the Cayman Islands, Gibraltar and Monaco, among others. The list is set by a ministerial order and can change — always check the current version.
🏘️ AIMI for Non-Residents
The AIMI (additional IMI) also applies to non-residents:
- Individuals: only if the total VPT of their residential properties exceeds €600,000, at rates of 0.7%, 1% and 1.5%
- Companies: 0.4%, without the deduction
- Entities in tax havens: 7.5%
📋 Other Obligations for Non-Residents
- Tax representative or electronic notifications: make sure you receive the Tax Authority’s notifications.
- Rental income: if you rent out the property, you’ll pay IRS in Portugal on that income (generally at a flat 25% for non-residents), and you need to register the rental.
- Capital gains: if you sell the property, capital gains are taxed in Portugal.
- Pay on time: IMI is paid in May, August and/or November, depending on the amount.
💡 Tips Before You Buy
- Check the VPT of the property — it affects your IMI, IMT and Stamp Duty.
- Check where you’re tax resident — if it’s a blacklisted jurisdiction, the IMI cost can be dramatically higher.
- Think about the ownership structure (personal name, company) before you sign.
- Get your NIF and set up your tax notifications early.
🚀 Final Considerations
For most non-residents, owning property in Portugal costs the same in IMI as for residents — but the benefits for permanent homes don’t apply, and owners linked to tax havens face a 7.5% rate. Planning ahead makes all the difference.
📢 Expert Advice: If you live in, or hold assets through, a low-tax jurisdiction, get tax advice before you buy. The 7.5% IMI rate can turn a good investment into an expensive one.
Buying property in Portugal from abroad? Step Inside Portugal can help you with your NIF, tax representation and property taxes — find out more about our tax services here. ✨
This article is for general information only and doesn’t constitute tax advice. It reflects the rules as of October 2026; the tax haven list and rates can change, so confirm the rules that apply to your situation.
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