Buying property in Portugal as a foreigner

Marginal rates:

• up to EUR 106,346 0%
• to EUR 145,470 2%
• to EUR 198,347 5%
• to EUR 330,539 7%
• to EUR 660,982 8%
• EUR 660,982 to EUR 1,150,853 flat 6%
• above EUR 1,150,853 flat 7.5%. For buyers aged 35 or less (table II) the 0% band runs to EUR 330,539. Housing that is not a main and permanent home (table III, the IMT Code scale): 1% up to EUR 106,346, then 2%, 5%, 7%, 8% up to EUR 633,931, flat 6% to EUR 1,150,853 and flat 7.5% above. Other urban property and other onerous acquisitions 6.5%
• rustic property 5%

The Autonomous Regions have higher band limits (tables IV to VI).

A buyer who is not tax resident pays a flat 7.5% on housing instead of the scale from 25 May 2026, with exceptions (see the rule for buyers who are not tax resident). Buyers (other than individuals) domiciled in listed low tax jurisdictions, or controlled from them, pay 10%.

• Article 17 n.
• 10 to 12 of the IMT Code, added by Decree Law 97/2026: the flat 7.5% and the refund on request within six months.
• Article 36 now lets IMT be paid on the day of assessment or within the following 30 days.

7.5% on housing for a non resident buyer, as above.

0.8% of the value on an onerous acquisition or a gift of ownership of real estate (item 1.1 of the General Table).

• Urban property 0.3% to 0.45% (up to 0.5% in municipalities in a local economy support programme); rustic property 0.8%.
• Municipalities can raise or lower the rate within set limits, for example up to triple for empty or ruined buildings and a cut of up to 20% for let property.
• Ranges as in the Tax Authority table for 2025 and article 112 of the consolidated IMI Code; municipalities fix the rate each year within them.

Owners domiciled in a listed low tax jurisdiction, and entities controlled from one, pay 7.5%; this does not apply to individuals.

• Individuals: 0.7% up to EUR 1,000,000, 1% from EUR 1,000,000 to EUR 2,000,000, 1.5% above, after a EUR 600,000 deduction (doubled for couples filing jointly).
• Undivided estates 0.7%.
• Companies 0.4% (rates of individuals if the property is for personal use of owners).
• Entities in listed low tax regimes 7.5%.
• The consolidated AIMI articles (135 C and 135 F) show the same deduction and rates, last amended in 2018.

No separate rate applies to non resident individuals; the 7.5% applies by the tax domicile of entities.

• Rent from housing leases earned in Portugal by a non resident is taxed at a final autonomous rate of 25% (article 72 n.
• 2 of the Personal Income Tax Code); other rental income is taxed at 28% (article 72 n.
• 1 e).
• For permanent housing leases of 5 years or more, the autonomous rate is cut by 10 percentage points (5 to under 10 years, with a further 2 points per renewal, limited to 10), 15 points (10 to under 20 years) or 20 points (20 years or more).
• Decree Law 97/2026 adds a 10% autonomous rate for housing rent not above the moderate rent cap (2.5 times the 2026 minimum monthly wage), for income earned up to 31 December 2029, unless a more favourable rate applies (article 45 C of the Tax Benefits Statute, effective from 1 January 2026).
• Residents of another EU or EEA state (the latter with information exchange) may opt to have items under article 72 n.
• 1 b), n.
• 1 e) and n.
• 6 taxed at the rate that the general progressive scale would give a resident (article 72 n.
• 15 and 16, with worldwide income considered).
• The option covers n.
• 1 b), n.
• 1 e) (other rents) and n.
• 6, and does not list the 25% residential lease rate of n.
• 2.

Non residents file the annual Personal Income Tax return for Portuguese source income; a fiscal representative is mandatory for those resident outside the EU and EEA.

• Since the 2023 budget (Law 24 D/2022) revoked the 28% flat rate for non resident property gains (article 72 n.
• 1 a), gains on Portuguese real estate of a non resident (article 10 n.
• 1 a) are the one non resident income that is aggregated: they go into the progressive scale (article 22 n.
• 3 a), with worldwide income used only to find the rate (article 22 n.
• 10), and only 50% of the gain counts (article 43 n.
• 2 b) unless public aid above 30% of tax value was received and the sale is within 10 years).
• The 2026 scale (article 68, Law 73 A/2025) runs from 12.5% up to 8,342 euros to 48% above 86,634 euros of taxable income.

• Own home relief (article 10 n.
• 5 and 6): the gain on a home that was the owner's own permanent home (fiscal domicile there in the last 12 months) is excluded if the sale value, net of any loan repaid, is reinvested in another home in Portugal or another EU or EEA state (with tax information exchange) between 24 months before and 36 months after the sale.
• Decree Law 97/2026 adds a relief for gains reinvested in housing let at moderate rent (n.
• 7 to 9, sales between 1 January 2026 and 31 December 2029) and keeps a relief for sums placed in retirement products by owners aged 65 or retired (n.
• 10).

• Portugal has no separate inheritance tax.
• Stamp duty at 10% applies to gratuitous acquisitions (inheritance, legacy, gift) of assets located in Portugal, including real estate and shares of Portuguese companies where the acquirer is domiciled there, added to the 0.8% stamp duty on real estate (items 1.1 and 1.2 of the General Table, article 4 n.
• 3 and 4 of the Stamp Duty Code).
• The spouse or de facto partner, descendants and ascendants are exempt for item 1.2 (article 6 n.
• 1 e).
• The rules turn on where the assets are, so a non resident heir of Portuguese real estate falls in scope.

• Law 56/2023 (published 6 October 2023, in force the next day, 7 October 2023) bars new applications under the real estate sub paragraphs i), iii) and iv) of article 3 n.
• 1 d) of Law 23/2007, and after the reform the remaining investment activities may not be directed, directly or indirectly, to real estate (article 90 A, as amended).
• Renewals of permits already granted, applications pending on 7 October 2023 and related family reunification remain possible; renewed permits convert into the entrepreneur immigrant permit with minimum stays of 7 days in the first year and 14 days in each later two year period.

closed

Law 56/2023 text read shows two remaining capital routes: at least EUR 500,000 to acquire units of non real estate collective investment undertakings set up under Portuguese law with at least five years maturity and at least 60% invested in companies based in Portugal; and at least EUR 500,000 to set up a company with five permanent jobs, or to reinforce a company with five new or ten kept jobs (at least five permanent) for at least three years. Amounts may be 20% lower in low density territories for some routes.

open

• The NHR regime was repealed from 2024.
• Law 82/2023 article 236 protects taxpayers already registered, and those who became resident by 31 December 2024 holding listed evidence (such as a lease or promise to buy signed by 10 October 2023, a work contract signed by 31 December 2023 or a visa application started by 31 December 2023).
• The replacement IFICI (article 58 A of the Tax Benefits Statute) taxes net category A and B income from eligible research, innovation and highly qualified activities at 20% for 10 consecutive years, requires not being resident in the previous five years, and does not depend on property ownership.
• Foreign income of listed categories is generally exempt, with 35% on income paid from listed low tax jurisdictions.

open

Consular information pages state that means of subsistence must be a constant, stable flow at least equal to the Portuguese minimum wage (EUR 920 in 2026), from movable or immovable property, intellectual property or financial investments, with housing proof for at least one year. The embassy page states the D7 cannot be used by someone working remotely for companies outside Portugal.

open

Means of subsistence equal to four Portuguese minimum wages (EUR 3,680 a month on a minimum wage of EUR 920 in 2026) and proof of tax residence, per the consular information page; a remote work relationship with a company outside Portugal is the premise.

open

Decree Law 76/2024 (in force 1 November 2024) removed the suspension of new local accommodation registrations in apartments, the five year validity of registrations and the general condominium authorisation requirement, and lets municipalities set contention areas by parish where new registrations can be barred; municipalities have 60 days to oppose a new registration (90 days in contention areas); a condominium assembly may oppose a fraction by a reasoned resolution of more than half of the building's permilagem after proven repeated disturbance, and may bar the activity for future requests by two thirds.

open