New IMT Rate for Non-Residents Acquiring Residential Property in Portugal

The Portuguese Government has introduced significant amendments to the Municipal Property Transfer Tax (IMT) regime as part of its new housing programme aimed at increasing the supply of residential properties for both purchase and rental.

IMT is a tax levied on the transfer of ownership and other in rem rights over immovable property located in Portugal. It applies regardless of the purchaser’s nationality or place of residence and is payable only once, upon the acquisition of the property.

Under the new legal framework, a fixed IMT rate of 7.5% applies to non-resident individuals or entities acquiring urban properties or autonomous units intended exclusively for residential purposes.

However, this rate may not apply if the purchaser subsequently meets one of the following conditions:

• Becomes a Portuguese tax resident within two years of acquiring the property; or
• Allocates the property to residential leasing under a moderate-rent scheme within six months of the acquisition, with monthly rent ranging between €400 and €2,300, and maintains the lease for a minimum aggregate period of 36 months during the first five years of ownership.

These amendments are intended to encourage both relocation to Portugal and the availability of affordable rental housing.

Given the specific legal requirements applicable to this regime, purchasers should carefully assess whether they qualify for the exemption from the 7.5% rate and understand the conditions that must be maintained in order to benefit from the available tax relief.