Key figures — as of 2026-09-01: Flat 7.5% IMT on residential purchases by non-tax-residents, in force since 25 May 2026 under Decree-Law 97/2026 — replacing progressive rates that previously ran from 0% to around 8%; on a €300,000 property, the non-resident IMT bill reaches €22,500, plus 0.8% stamp duty (€2,400), versus roughly €11,790 paid before the change; exemption available if the buyer becomes Portuguese tax resident within 2 years, or lets the property long-term at moderate rent for 36 of the first 60 months.
The rule that just doubled the entry price
Anyone buying a home in Portugal without Portuguese tax residency now pays a flat 7.5% transfer tax on the purchase price, full stop — no brackets, no discounts, no exemption for a modest first home. The new paragraph applies a flat IMT rate of 7.5% on the acquisition of urban property, or of an autonomous fraction of urban property, intended exclusively for housing, where the purchaser is non-resident. The change comes from Decree-Law 97/2026, part of a wider housing package, and has been in force since 25 May 2026, with the decree setting no special date for the IMT change so the general five-day rule applies.
Crucially, this isn't about passports. IMT is based on tax residency, not nationality — EU and non-EU buyers are treated the same. A German retiree, a British second-home owner, and a Brazilian investor all land in the same 7.5% bracket the moment they lack Portuguese tax residency, regardless of where their money comes from.
What it actually costs
Until 24 May, residents and non-residents paid the same sliding scale. The jump since then is stark: on a €200,000 apartment, a resident buying a second home might previously have paid around €3,000–€4,000 in IMT, while a non-resident now owes €15,000; on a €300,000 property, the non-resident bill reaches €22,500, compared with approximately €11,790 for a resident. Add stamp duty and the picture sharpens further: on a €300,000 property a non-resident buyer pays €22,500 of IMT plus €2,400 of stamp duty, so €24,900 before the deed.
Run the numbers on that €300,000 example and the "nearly doubles" framing isn't hyperbole — it's arithmetic. €22,500 against the old €11,790 works out to roughly a 91% increase in the transfer tax alone. GrowIN Portugal's own read: the extra €10,710 a buyer now hands over on that single purchase is close to 12 months of Portugal's 2026 minimum wage (€920/month) — money that used to stay in the buyer's pocket, or in the property, and now goes straight to the Treasury before the keys are even handed over.
The two escape hatches
The law isn't a blanket wall — it builds in two routes back to the ordinary scale. Buyers who become tax residents within two years of purchasing the property will not be subject to the 7.5% rate. Alternatively, properties placed on the long-term rental market within six months — at rents within the "moderate rent" limit (up to €2,300/month) and kept rented for at least 36 months within five years — may also apply the normal IMT scale. Both routes require the buyer to actively claim a refund of the overpaid difference rather than getting the lower rate automatically at the deed — and as of mid-2026 the tax authority had not published detailed procedural guidance for how those refund requests should be filed.
That gap matters. Anyone planning to relocate to Portugal within two years of buying — the classic scenario for someone finalising a D7 or D8 visa before moving — should keep every document proving the purchase and the later residency application, because the refund is not automatic.
Why this matters beyond the tax bill
This isn't an isolated tweak. It sits inside a broader housing package aimed at cooling investor demand while easing costs for residents buying their primary home — the same package that introduces reduced VAT on construction and tax breaks for landlords who commit to moderate-rent leases. The signal to foreign buyers is unambiguous: Portugal is now pricing tax residency into the property market itself.
GrowIN Portugal Editorial view: Portugal has effectively put a price tag on staying put — buy without residency and the notary bill just got a lot heavier.
What to watch next
Two things are worth tracking closely. First, whether the Autoridade Tributária issues the promised procedural guidance for refund claims — until it does, buyers betting on the two-year residency exemption are operating on good faith rather than a published process. Second, watch for legal challenges or clarifications around the exact "entry into force" date, since some practitioners have argued the changes should only bite from later in 2026 rather than 25 May — a dispute that could affect anyone who signed a deed in that window. Anyone structuring a purchase around residency timing, a NIF, or fiscal representation should get current advice before signing a CPCV — see our tax and NIF guide for the basics of establishing tax status in Portugal.
Foreign buyers who move ahead regardless should budget on the new numbers, not the old ones — the days of assuming a modest progressive IMT bill are over for anyone without a Portuguese tax address.