Buying a home in Portugal became more expensive for some non-residents on 25 May 2026, when new legislation introduced a 7.5% property transfer tax (IMT) on certain residential purchases. However, people planning to relocate to Portugal may be able to recover part of that tax if they subsequently become Portuguese tax residents.
This is particularly relevant to people moving through the D7 retirement visa, D8 Digital Nomad visa, D2 Entrepreneur visa, D3 highly qualified activity route or family reunification. Under the new rules, a buyer who becomes a Portuguese tax resident within two years of purchasing may qualify for a partial refund of the IMT paid, provided the statutory conditions are met and the application is submitted within six months of becoming a tax resident.
The difference can amount to thousands of euros. This guide explains who is affected by the 7.5% rate, how the refund works, the deadlines that matter and why coordinating your property purchase with your relocation and tax residence can make a significant difference.
The 7.5% IMT rule and how to get your money back
This is arguably the most important change for people considering buying property before completing their move to Portugal.
Since 25 May 2026, buyers who are not Portuguese tax residents generally pay a flat 7.5% Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) when purchasing an urban property, or an autonomous unit, intended exclusively for housing.
The rule was introduced through Decree-Law 97/2026 of 20 May, which amended Article 17 of the Portuguese IMT Code.
Some reports have referred to 1 September 2026 as the start date. However, the IMT change took effect on 25 May. September was the implementation date for other measures in the legislation.
Who pays the 7.5% tax?
The higher rate generally applies to non-resident buyers who have not previously qualified as Portuguese tax residents and who do not fall within another statutory exception.
Unlike the ordinary IMT system, which uses progressive tax brackets for most residential purchases, this is a flat rate. The normal reductions and exemptions, including those associated with a qualifying primary residence or the IMT Jovem scheme, do not apply to a purchase taxed under the 7.5% rule.
For example, a non-resident buying a property with an IMT taxable value of €300,000 would initially pay:
€300,000 x 7.5% = €22,500 IMT
That is before stamp duty, legal fees and other purchasing expenses.
How the refund works when you become resident
Article 17(10)(b) of the IMT Code provides an important exception for buyers who become Portuguese tax residents within two years of acquiring the property.
Under Article 17(11), qualifying buyers can request that the Portuguese Tax Authority, known as Autoridade Tributária e Aduaneira (AT), cancel the excess portion of the original IMT assessment and repay the difference.
You are not asking for the entire 7.5% back. Instead, the tax is compared with what would be payable under the applicable normal IMT rates.
If the normal calculation produces a lower tax bill, the excess may be repaid.
To qualify for the more favourable primary-residence IMT calculation, the property must also meet the requirements for habitação própria e permanente, including the general six-month occupation condition. Under Article 11(8)(b) of the IMT Code, qualifying primary-residence relief can be lost if the property is not assigned to the buyer's own permanent residence within six months of acquisition. Becoming tax resident within two years does not automatically qualify the purchase for that table.
Worked example: Buying a €300,000 home
Imagine that you are applying for a D7 visa from outside Portugal. You find a home costing €300,000 and complete the purchase before becoming a Portuguese tax resident.
You initially pay the 7.5% non-resident IMT. You then relocate to Portugal, establish tax residence within two years and submit a qualifying refund claim.
For this example, we also assume that the property is assigned to your own permanent residence within six months of acquisition and that all other requirements for the primary-residence IMT calculation are satisfied.
Assuming the property is on mainland Portugal, its IMT taxable value is €300,000, and the ordinary primary-residence table applies, the figures would look like this:
| Calculation | Amount |
|---|---|
| Property purchase price | €300,000.00 |
| Initial non-resident IMT at 7.5% | €22,500.00 |
| Normal 2026 primary-residence IMT | €10,542.04 |
| Potential IMT refund | €11,957.96 |
| Stamp duty at 0.8% | €2,400.00 |
That could mean recovering almost €12,000 of the €22,500 initially paid in IMT.
The ordinary primary-residence amount comes from the official 2026 mainland IMT table: 7% of €300,000, less the applicable deduction of €10,457.96.
Important: This example is illustrative and assumes that the property qualifies for the ordinary primary-residence scale, including the general requirement to assign it to the buyer's own permanent residence within six months of acquisition. If the normal residential table for a property that is not a primary residence applies, the corresponding IMT would be €11,605.50, producing a potential refund of €10,894.50 instead. The applicable table and final refund depend on the circumstances of the acquisition, eligibility conditions and the AT assessment. Madeira and the Azores have different IMT tables. Confirm your figures using the official 2026 AT IMT tables or with a qualified tax adviser.
The two deadlines you cannot afford to miss
Deadline 1: Become a Portuguese tax resident within two years of the property purchase.
The two-year period begins on the date of acquisition. Simply applying for a visa, obtaining a NIF or intending to move is not sufficient. You must actually meet the Portuguese tax residence requirements within that period.
Deadline 2: Submit the refund request within six months of establishing Portuguese tax residence.
This is a separate deadline. It does not mean you have six months from the purchase, or six months from receiving a residence card. The relevant event is establishing tax residence in Portugal.
Important: Portuguese tax residence can have an effective date earlier than the date it is formally registered or confirmed by Finanças. Under Article 16(3) of the Personal Income Tax Code (CIRS), residence may take effect from the first day of the qualifying stay, rather than the day you pass 183 days in Portugal or update your tax registration.
This can affect when the six-month IMT complaint period begins. Buyers should obtain professional confirmation of the effective residence date and the resulting claim deadline, particularly where tax residence is recognised retrospectively. The official guidance does not expressly resolve every practical situation involving retrospective recognition, so the deadline should be confirmed with the AT where necessary.
Missing the claim deadline can mean losing the right to recover the excess IMT.
The AT confirmed the procedure in Ofício Circulado 40131/2026, dated 4 September 2026.
How do you actually claim the refund?
The repayment is not processed automatically when you become resident.
You must make a formal administrative tax complaint, called a reclamação graciosa, requesting the annulment of the excess IMT under Article 17(11) and (12) of the IMT Code.
As a practical starting point, you or your tax representative should:
- Confirm the date you became tax resident. Establish that the conditions of Article 16 of the Personal Income Tax Code (CIRS) were met within two years of the purchase. Remember that the effective date may be the first day of a qualifying stay, even if Finanças registers or confirms your residence later. Have the resulting six-month complaint deadline professionally checked, particularly where residence is recognised retrospectively.
- Update your tax registration. Make sure the Portuguese Tax Authority has correctly registered your tax residence and the relevant effective date.
- Collect the purchase records. Keep the deed, IMT assessment, payment receipt, property details and identification information.
- Calculate the potential excess. Compare the IMT paid at 7.5% with the normal IMT calculation applicable to your circumstances.
- Submit the reclamação graciosa. Request cancellation of the excess assessment and repayment of the difference within the six-month period.
- Monitor the claim. Retain submission confirmation and respond to any request from the AT for supporting documentation.
The exact supporting evidence and the appropriate submission channel should be confirmed with the AT or a Portuguese tax professional handling the claim.
What is not refunded?
The special repayment mechanism concerns IMT only.
The normal 0.8% stamp duty (Imposto do Selo) paid on the purchase is not refunded through this mechanism. In the €300,000 example, that means the €2,400 stamp duty remains a separate acquisition cost.
There is also an unresolved question for qualifying buyers aged 35 or under. Although the ordinary IMT Jovem scheme can provide substantial exemptions, the AT has not expressly confirmed whether the special non-resident refund should be calculated using the IMT Jovem table. Buyers should not assume that a later change in residence will produce a full IMT Jovem refund.
A second refund route: Renting the property at a moderate rent
Becoming a Portuguese tax resident is not the only possible route to recovering excess IMT.
Article 17(10)(c) of the IMT Code also provides an exception for residential properties placed on the rental market under specified conditions.
This may be particularly relevant to buyers who intend to invest in long-term rental housing rather than immediately occupy the property themselves.
Under the legislation, the main requirements include:
- Rental designation: Within six months of acquisition, the property must be allocated to qualifying residential letting at a moderate rent. This is not necessarily the same as requiring a tenancy to have already commenced within that period.
- Moderate rent: The monthly rent must not exceed the applicable moderate-rent ceiling, taking account of any additional amounts that must legally be included in the calculation.
- Rental duration: The property must be rented for at least 36 months, consecutive or non-consecutive, within the first five years following acquisition.
- Refund application: The owner must request the repayment of excess IMT within six months of signing the qualifying residential tenancy agreement.
The legislation defines moderate rent by reference to 2.5 times the national minimum monthly wage for 2026. With the mainland minimum wage at €920, this gives a reference ceiling of €2,300 per month.
For mainland Portugal, the 2026 reference ceiling is therefore €2,300 per month. However, when assessing whether a rental satisfies this limit, Article 3 of Decree-Law 97/2026 can require additional amounts associated with the property, permanently connected furnishings, equipment, ancillary components or value-enhancing services to be included, even when covered by separate agreements. The legislation also provides rules for assessing amounts on an annual basis.
Buyers should not assume that the headline monthly rent alone establishes eligibility. For example, charging separately for equipment or services does not necessarily prevent those amounts from counting towards the moderate-rent ceiling.
The legislation also allows the limit to be updated by ministerial order. Madeira and the Azores have different regional minimum wages, so the island-specific application should be checked separately rather than automatically applying the mainland €2,300 calculation.
Housing and tax advisers have highlighted this route as an opportunity for non-resident buyers who contribute to Portugal's long-term rental supply. However, the calculation of the applicable rental ceiling, the qualifying contract requirements and the obligation to maintain the rental conditions should be reviewed by a tax adviser before relying on the relief.
For this route, the AT's September 2026 guidance identifies the signing date of the qualifying residential lease as the event that starts the six-month period for submitting the reclamação graciosa.
The distinction between allocating a property to residential letting and actually commencing a tenancy is important. The statutory wording refers to the property being destinado ao arrendamento para habitação within six months of acquisition, while separately requiring at least 36 months of qualifying rental occupation during the first five years.
If a property has been genuinely allocated to qualifying residential letting but is not yet occupied at the six-month point, the owner should confirm with the AT what evidence is sufficient to demonstrate compliance before relying on this exception.
Important: The rental period requirement continues beyond the initial claim. Owners must remain compliant with the qualifying conditions and should obtain advice about the consequences of early termination, changes of use or failure to meet the required rental duration.
This route does not require the buyer to become a Portuguese tax resident, but it does require satisfying the applicable rental conditions. It is not a general tax exemption for every investment property.
Who can avoid the 7.5% IMT from the beginning?
Not every buyer who lives outside Portugal must pay the higher rate. The law and the September 2026 clarification from the AT identify important exceptions.
1. People who were previously Portuguese tax residents
If you currently live abroad but have previously been considered a Portuguese tax resident under Article 16 of the CIRS, the normal IMT rules apply rather than the new flat 7.5% rate.
For example, someone who lived and worked in Portugal, subsequently moved abroad and now wishes to buy a property in Portugal may fall within this exception.
The important distinction is previous tax residence, not merely having visited Portugal, held a Portuguese NIF or owned property here.
2. Married couples under a community-property regime
The marital property regime can make a substantial difference.
For a property purchased jointly under a qualifying community-property regime, the AT has clarified that the flat 7.5% applies only where:
- Both spouses are non-residents at the time of acquisition; and
- Neither spouse has previously been considered a Portuguese tax resident.
This means that if one spouse is already tax resident, or has previously been tax resident in Portugal, the acquisition may fall outside the higher-rate rule.
The same guidance confirms that if one spouse in a community-property marriage becomes tax resident within two years of a purchase originally taxed at 7.5%, the couple can pursue the applicable excess IMT refund.
3. Single buyers, separate-property marriages and co-owners
Different rules apply when the acquisition is treated as an individual transaction.
For single, divorced or widowed buyers, and buyers married under a separation-of-property regime, the AT generally assesses the individual's tax residence status.
Where a property is acquired by separate co-owners, the residence conditions are assessed individually for each co-owner.
Therefore, one buyer's previous or current residence status does not automatically exempt every other co-owner.
Because this distinction can materially affect the IMT payable, couples and joint buyers should have their ownership arrangement and marital property regime checked before the deed.
The simplest strategy for visa holders: Residency first, deed second
For many people moving to Portugal, the easiest way to avoid the higher non-resident IMT is also the most straightforward:
Establish Portuguese tax residence before completing the property purchase.
If you already qualify as a Portuguese tax resident when you sign the deed, the ordinary IMT rules apply, subject to your circumstances. There is no initial 7.5% non-resident payment to reclaim.
This is particularly worth considering for D7 and D8 applicants who are planning a permanent relocation rather than purchasing a holiday home.
A practical order for D7 and D8 applicants
- Plan your visa application.
Determine your visa route, document requirements and likely appointment timeline before committing to a property purchase. Our guide to timing your Portugal visa application explains why the order of each step matters.
- Arrange qualifying accommodation.
D7 and D8 applicants generally need to provide evidence of accommodation in Portugal as part of the visa process. This does not necessarily mean buying a property. Many applicants choose to rent first, giving themselves an opportunity to explore different locations before purchasing.
Read our proof of accommodation guide and our guide to renting without a fiador.
- Obtain your visa and relocate.
Enter Portugal using the appropriate immigration route and progress your residence permit process with AIMA. Immigration residence and tax residence are separate legal concepts, so receiving an AIMA residence card is not, by itself, what determines IMT tax residence status.
- Establish and register Portuguese tax residence.
Under Article 16 of the CIRS, tax residence can arise through spending more than 183 days in Portugal during the relevant 12-month period, or through maintaining a home in circumstances showing an intention to occupy it as a habitual residence, even with a shorter stay.
Once you meet the criteria, update your tax address and residence status with Finanças. The AT generally requires this update within 60 days of satisfying the relevant tax residence conditions.
Remember that under Article 16(3) CIRS, tax residence may take effect from the first day of the qualifying stay. The effective date can therefore be earlier than the date your residence is formally registered or confirmed by Finanças.
If you need help understanding your tax obligations, read our nine tax mistakes to avoid when moving to Portugal.
- Complete your property purchase.
Once your tax residence status has been established and confirmed for the transaction, you can proceed with the deed using the applicable normal IMT rules, rather than paying the non-resident 7.5% upfront.
A note about timing: You do not necessarily need to wait until you have received a physical AIMA residence permit to qualify as a tax resident. What matters for IMT is satisfying the legal tax residence criteria and being able to substantiate that status. Have your tax adviser confirm this before completing the purchase.
What if you find the perfect property before moving?
Sometimes waiting is not realistic. You may have found a property you want to secure, or the seller may not be willing to delay completion until your relocation is finished.
In that situation, buying before tax residence may still be a reasonable choice, provided you understand the financial implications.
You should budget for the full 7.5% IMT at purchase, confirm your potential refund eligibility, and record the two-year residence deadline and subsequent six-month complaint deadline. If you intend to claim using the primary-residence IMT table, you should also confirm that the property's use satisfies the applicable conditions, including the general six-month requirement to assign it to your own permanent residence.
Do not assume the refund will be immediate or that it will be approved simply because you eventually receive a Portuguese residence permit.
It is also worth discussing with your lawyer whether the purchase contract can accommodate your relocation timetable without exposing you to unacceptable contractual or financial risks.
If you do not already have a Portuguese taxpayer number, our NIF guide explains this essential first step. Having a NIF, however, does not automatically make you a Portuguese tax resident.
What is happening in Portugal's property market?
Portugal's house prices increased by 16.5% year on year in the second quarter of 2026, according to INE, even as the number of completed property transactions fell by 6.4%.
Purchases by buyers with tax residence outside Portugal fell even faster, declining by 10.3% compared with the same quarter in 2025.
For a detailed breakdown of prices in Lisbon, Algarve, Madeira and other regions, together with an explanation of why prices continue rising despite fewer sales, read our separate report: Portugal House Prices 2026: Up 16.5% as Sales Fall Again.
Common questions about buying property and IMT in Portugal
Can I buy a house in Portugal before I have a residence permit?
Yes. Foreign nationals can buy property in Portugal without first obtaining a Portuguese residence permit. However, if you are not a Portuguese tax resident and have never previously qualified as one, the 7.5% non-resident IMT rate will generally apply to a residential purchase unless another statutory exception applies. Buying a property does not itself grant Portuguese immigration residence.
Does Portugal charge every foreign buyer 7.5% IMT?
No. The 7.5% rule is based on tax residence and the statutory exceptions, not simply nationality. Foreign nationals who are already Portuguese tax residents generally use the ordinary IMT rules. Certain former Portuguese tax residents and qualifying married couples may also avoid the higher rate.
When did the new 7.5% IMT rate take effect?
The 7.5% IMT rate for qualifying residential purchases by non-residents took effect on 25 May 2026 under Decree-Law 97/2026 of 20 May. The date of 1 September 2026 referred to in some reports applies to other measures in the legislation, not the introduction of this IMT rate.
Can I get the entire 7.5% IMT refunded if I become resident?
No. The special refund concerns the difference between the 7.5% IMT initially paid and the amount calculated under the applicable normal IMT rates. You do not automatically receive all the transfer tax back. The amount depends on the property's taxable value and which ordinary IMT table applies. To benefit from the more favourable primary-residence table, the property must also satisfy the conditions for habitação própria e permanente, including the general requirement to assign it to your own permanent residence within six months of acquisition. Becoming tax resident within two years does not automatically establish eligibility for that table.
What are the deadlines for claiming an IMT refund after becoming resident?
You must become a Portuguese tax resident within two years of buying the property. You must then submit a reclamação graciosa within six months of establishing tax residence. These are separate deadlines. Under Article 16(3) CIRS, tax residence may take effect from the first day of a qualifying stay, earlier than the date it is formally registered or confirmed by Finanças. You should obtain professional confirmation of the effective residence date and the resulting claim deadline, particularly if residence is recognised retrospectively. The AT should be consulted where the deadline calculation is uncertain. Missing the six-month claim period can mean losing your right to recover the excess IMT.
Is the IMT refund automatic when I receive my residence permit?
No. A Portuguese residence permit and Portuguese tax residence are not the same thing. You must meet the tax residence conditions and actively request the excess IMT repayment through a reclamação graciosa submitted to the Portuguese Tax Authority. The refund is not automatic. Your tax residence may also have an effective date earlier than the date Finanças formally registers it, so do not assume that receiving your residence card or updating your tax address starts the six-month claim period.
Can I recover excess IMT by renting the property instead of moving to Portugal?
Potentially, yes. A separate route applies to qualifying residential rental properties. The property must be allocated to qualifying residential letting within six months of acquisition and be rented for at least 36 months during the first five years. The statutory requirement to allocate the property to residential letting does not expressly mean a tenancy must already have commenced within the first six months. In mainland Portugal, the 2026 reference moderate-rent ceiling is €2,300 per month, but the calculation can include amounts attributable to furnishings, equipment, ancillary components and services, even under separate agreements. Regional rules and future adjustments may affect the ceiling. The refund request must be submitted within six months of signing the qualifying tenancy agreement. Seek tax advice and confirm the evidence required by the AT before relying on this route.
Does the 7.5% rule apply if one spouse previously lived in Portugal?
For a joint purchase under a qualifying community-property marriage regime, the 7.5% rate generally applies only if both spouses are non-residents and neither has previously been a Portuguese tax resident. If one spouse previously qualified as a Portuguese tax resident, the normal IMT rules may apply. Separate-property marriages and other co-ownership arrangements are assessed differently.
Will I get the 0.8% stamp duty back with my IMT refund?
No. The special non-resident repayment mechanism covers excess IMT, not the separate 0.8% stamp duty paid on the property purchase. On a €300,000 property, the ordinary purchase stamp duty would be €2,400, assuming that is the taxable value.
Can a buyer under 35 reclaim the full IMT using IMT Jovem?
This has not been expressly confirmed by the Portuguese Tax Authority for the special non-resident refund mechanism. Although eligible younger buyers may qualify for IMT Jovem relief under the ordinary rules, buyers should not assume that becoming resident after a purchase originally taxed at 7.5% will automatically entitle them to a full refund under the IMT Jovem table.
Planning to buy a property when moving to Portugal?
Whether you are applying for a D7, D8, D2 or another Portuguese residence route, the order in which you arrange your visa, accommodation, tax residence and property purchase can make a real financial difference.
At Visas.pt, we can help you plan the relocation process and connect the different steps rather than treating the visa and property search as unrelated decisions.
Tax Consultation
Our Tax Consultation service can help you understand the implications of becoming a Portuguese tax resident, the timing of your move, and the tax questions you should resolve before buying a home. Where an IMT refund or property transaction raises specialist issues, the relevant circumstances should be reviewed with a qualified Portuguese tax professional.
Property Finder
Our Property Finder service helps relocating clients search for accommodation in Portugal, including rental properties suitable for their visa journey. Renting first can give you time to settle into the country, establish your tax position and make a better-informed decision about where to buy.
Before paying a deposit or signing a property purchase contract, make sure you understand how your residency timeline could affect the tax payable.
Official sources and legal guidance
- Decree-Law 97/2026 of 20 May, including the amendments to Article 17 of the IMT Code and the rules for calculating moderate rent.
- AT Ofício Circulado 40131/2026, clarifying treatment of individual buyers, joint purchasers, married couples and refund claims.
- AT Ofício Circulado 40129/2026, official IMT calculation tables for 2026.
- Article 11 of the IMT Code, including the conditions for retaining primary-residence IMT relief and the general six-month occupation requirement.
- Article 16 of the Personal Income Tax Code, including the criteria and effective date for Portuguese tax residence.
- Decree-Law 139/2025, establishing the mainland national minimum wage for 2026.
- Portuguese Tax Authority guidance on tax residence.
Information current to 27 October 2026. This article provides general information and is not individual legal, tax or property investment advice. IMT calculations depend on the property's taxable value, use, location, ownership structure and applicable exemptions. Confirm your particular situation and all claim deadlines with the Portuguese Tax Authority or a qualified adviser before purchasing or submitting a refund request.