As part of its upcoming fiscal package, the Portuguese government has announced plans to increase property transfer tax (IMT) for non-residents. This move is intended to address the country’s worsening housing crisis by discouraging speculative foreign investment in residential property.
The amount of IMT owed depends on the value of the property, its location, and its intended use (main residence vs. secondary/investment). For example, Portuguese residents using a home to live in benefit from more favorable rates and exemptions for lower-value properties. IMT must be paid before the deed of purchase (escritura) is signed and is usually arranged by the solicitor or notary involved.
While the exact increase has not yet been confirmed, the government has stated that non-resident buyers will face higher IMT rates under the new fiscal plan. Portuguese nationals living abroad will reportedly be exempt from this increase.
The goal is to make housing more accessible to Portuguese residents by reducing competition from foreign investors and second-home buyers — a growing concern in cities like Lisbon, Porto, and along the Algarve coast.
When Will the Changes Take Effect?The measure is expected to be included in the 2026 State Budget, which will be presented in October 2025. If approved in Parliament, the new IMT rules could take effect as early as January 2026.