Portugal property tax for foreigners: on the way in, every year, on the rent, on the way out.
// Short answer
A non-resident owner in Portugal meets tax at four points. On purchase: IMT in bands up to 7.5%, plus 0.8% stamp duty. Every year: IMI at 0.3% to 0.45% of the tax value, and AIMI above EUR 600,000. On residential rent: a flat 25%. On sale: half the gain, taxed at progressive rates of 12.5% to 48%.
Rules and rates as of September 2026. Short-term letting rules are set by each municipality and change often, so check the dated items again before you sign. Every figure links to its source.
On this page
What taxes do you pay when buying property in Portugal?
IMT, the municipal transfer tax, and 0.8% stamp duty. For a second home or investment in 2026, IMT runs in marginal bands from 1% to 8%, then a flat 6% on the whole price from EUR 633,931 and 7.5% above EUR 1,150,853. Both taxes are reported to be charged on the higher of price and tax value.
A buyer resident in a listed tax haven pays a flat 10% IMT. Homes bought subject to IMT are VAT-exempt. Band table: Portugal property buying costs.
Sources
What is the annual property tax in Portugal?
IMI, the municipal property tax, at 0.3% to 0.45% of the tax value (VPT) for urban property, with the rate set each year by the municipality. Rural property pays 0.8%. Owners with tax domicile in a listed more-favourable tax regime pay 7.5%.
Rates are tripled for vacant or ruined urban property, and degraded property can be raised by up to 30%. Municipalities can cut rates for let property or raise them in urban-pressure zones.
What is AIMI in Portugal?
An additional IMI on residential urban property and building land. For individuals it is 0.7% of taxable value above a EUR 600,000 deduction, with a marginal 1% between EUR 1 million and 2 million and 1.5% above EUR 2 million. Companies pay 0.4%.
Commercial and industrial property is outside its scope, per a bank's summary. Apart from AIMI, Portugal has no net wealth tax.
Sources
How is rental income taxed for a non-resident in Portugal?
At a flat 25% on residential lets, under Art. 72 of the IRS Code, as of September 2026. Other rental income, such as commercial, stays at 28%. Only residents of another EU/EEA state can opt for the progressive resident rates instead. A non-EU resident has no such option.
- Long leases: the rate falls by 10 points for 5 to 10 year contracts, 15 points for 10 to 20 years and 20 points for 20 years or more.
- Filing: non-residents declare the rent on the annual IRS return (Modelo 3), on net income after deductible expenses, per a bank's summary.
- Withholding: a tenant that is an entity with organised accounts withholds 25% of gross rent as an advance payment.
Sources
What is capital gains tax on Portuguese property for non-residents?
For gains from 1 January 2023, only 50% of a non-resident's gain is counted. That half is added to income and taxed at the progressive rates, 12.5% to 48% in 2026, with the band set using the seller's worldwide income, on the same basis as a resident.
Before 2023 the treatment was 50% of the gain at a flat 28%. A solidarity surcharge may apply on top at high incomes. The reinvestment exemption for a main home generally does not help a non-resident investor, because it requires the property to have been the seller's own permanent home.
Sources
// Buying in Portugal?
Every listing in your budget, ranked on net yield, appreciation and resale. Any market with public listing data; book a free call first so I can confirm your city has the data.
See the $499 report, page by pageFrequently Asked Questions
Do foreigners pay more property tax in Portugal?
What is IMI in Portugal?
Is rent from Portuguese property taxed if I live abroad?
How much of my gain is taxed when I sell in Portugal as a non-resident?
Does Portugal have a wealth tax?
Header photo: Dale Cruse, CC BY 4.0, via Wikimedia Commons. All credits: image credits.