Tax in Portugal
See what Portugal's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Portugal, and what it does not.
Free to start. No card. Rules reviewed 1 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase (approximate)
- Annual property or land tax
- Dividends, interest and share sales
- Inheritance and what happens on death
EUR · Rates as at 1 July 2026 · Estimates, not advice
Rental income is taxed at a flat 28% of net (25% for newer residential contracts), for residents and non residents alike. Maintenance and IMI are deductible but mortgage interest is NOT. Only 50% of a sale gain is taxed, at progressive rates.
How rental income is taxed in Portugal
For a resident owner: A flat 25% on net rent after costs. For an owner living abroad and renting this out: A flat 25% on net rent after costs.
Interest and losses
Mortgage interest is NOT deductible against the rent, which changes the whole case for borrowing here. A rental loss is ring fenced: it carries forward against future rental income rather than reducing other income now.
Capital gains on a sale
Gains are added to income and taxed at the marginal income rate. Hold for at least 1 year and 50% of the gain is discounted.
Annual property tax while holding
About 0.3% a year on the property value.
What it costs to buy
Purchase duty here is more than a single rate, and Freeholt prices the published rules rather than an average. IMT transfer tax is tiered (0 to 8%) plus 0.8% stamp duty and ~1 to 2% notary/registration; non EU/EEA owners must appoint a fiscal representative.
Buying here from abroad
The rules a foreign or non resident buyer meets here, as at 23 October 2026. Each line links to the official page it comes from, which is the one to rely on as these rules change. Estimates for planning, not advice.
- Under Decree Law 97/2026 of 20 May 2026, a buyer who is not tax resident in Portugal pays a flat 7.5% transfer tax (IMT) on a home, without the usual exemptions or reductions. Official source
- The ordinary IMT rules apply instead, on a request to the tax authority, where the buyer becomes tax resident in Portugal or lets the home under a qualifying lease. Official source
- Since 7 October 2023, an investment directed at real estate no longer qualifies for a new residence permit for investment. Official source
Residents of Portugal with property abroad
A resident of Portugal is taxed on rent and sale gains from property abroad under the same rules as property in Portugal, with a credit for the tax paid where the property is. The credit stops at Portugal's own tax on that income, so the total is broadly the higher of the two countries' charges. A special regime for people who have just moved to Portugal applies in Freeholt's figures only when it is chosen on the tax residence.
Dividends, interest and share sales
How Portugal taxes investment income. For dividends: Flat 28%. For interest: Flat 28%. For share sale gains: Flat 28%.
Inheritance and what happens on death in Portugal
A stamp duty charged on what each recipient takes, at up to 10%. The charge falls on each person who inherits rather than on the estate as a whole, so who inherits, and how closely they were related, changes the bill. The 10% is a worst case rather than a rate anyone is promised. It is the top of the least generous class of beneficiary, usually somebody unrelated, and a child inheriting from a parent normally faces a good deal less. A surviving spouse is exempt outright, so no charge arises on what passes to them. These rules were verified 5 August 2026. Freeholt models the country's rules rather than any particular will, so what an estate pays still depends on who inherits and what is in it.
How Freeholt models Portugal
Every rate above is priced from Freeholt's own table for Portugal and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Portugal this covers IMI municipal property tax, condominium fees, insurance, maintenance and ~8 to 10% management fees.
How borrowing works here
Terms up to ~30 years (shorter for older borrowers); non residents are typically capped near 60 to 70% LTV.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
Recent rule changes in Portugal
- 2026-05-25 Decreto Lei 97/2026: a non resident buyer of a dwelling pays a flat 7.5% IMT on the whole value, reclaimable if the buyer becomes resident within 2 years or lets the home at a moderate rent. COMPUTED for a foreign buyer, without the refund.
- 2027-01-01 The 2027 State Budget proposal raises the IMT brackets for housing by 2.3% and the IRS bracket limits by 3.88%; the final vote is due 24 Nov 2026.(proposed only, never priced into your figures)
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ApproximateDuty on purchase
- The published scale is priced from the rules in force, which differ by band and by buyer.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- ModelledDividends, interest and share sales
- Investment income and gains, with the local allowances.
- Not yetRetirement savings
- Not modelled for this country yet.
- ModelledInheritance and what happens on death
- Who pays, and on what, when property passes on.
What Freeholt does not model here
- Treaty relief between this country and the owner's country of residence
What the figures above leave out (2)
- Portugal charges 35% rather than 28% where the income arises in a blacklisted jurisdiction, and where income came from is not modelled. Understated by 7 percentage points where that is the case.
- Portugal's flat 28% is the default; the taxpayer may instead elect to aggregate this income into the progressive scale. That election is not modelled, so a lower earner who would take it is overstated.
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Portugal with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Portugal property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for Portugal. Duty on purchase carries a simplification that the page names beside the figure. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Portugal taxed if I live somewhere else?
- A flat 25% on net rent after costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Portugal figures as at?
- The rate table for Portugal was last reviewed on 1 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Portugal alongside everything else you own: see the year your portfolio starts paying you back.