On 25 September 2025, the Portuguese Prime Minister announced an increase in the Municipal Property Transfer Tax (IMT) for non-resident buyers, while Portuguese emigrants are exempt. The move is part of the government’s plan to make the housing market fairer and more equitable.
Housing and Infrastructure Minister Miguel Pinto Luz reassured potential buyers that this measure is not meant to discourage foreign investment. “Portugal will continue to attract international investors. This is a fair adjustment that helps redistribute wealth more effectively,” he told ECO.
The new IMT rules will primarily affect non-residents purchasing second homes or holiday properties who currently pay little or no taxes in Portugal. Foreign residents and Portuguese living abroad are not affected.
The Government has not yet released full details of the revised rates, which will be included in a broader fiscal package in the coming weeks. While the additional revenue is welcome, the main goal is fairness, not profit. Portugal remains an attractive market for foreign buyers thanks to its lifestyle, climate, and long-term investment potential.
Key takeaways for foreign buyers:
- The IMT increase applies only to non-residents buying homes in Portugal.
- Portuguese emigrants and foreign residents are exempt.
- Details of the new rates will be announced soon.
- Portugal continues to offer excellent opportunities for second homes or holiday properties.
If you’re considering investing in Portuguese real estate, now is a good time to understand how these changes may affect your plans—and why Portugal’s market remains appealing despite the tax adjustment.