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The latest updates in Portuguese property tax, selected and explained for non-resident property owners.
NHR has closed. IFICI has a deadline.
The non-habitual resident regime no longer accepts new applicants. Its successor is narrower, and registration closes on 15 January.
A 10% rate on residential letting
Residential rents within the moderate limit are taxed at 10% instead of 25%, for income earned up to the end of 2029.
Letting income can now be exempt from IRS
A new accessible letting regime replaces the 2019 programme. Income from qualifying contracts is exempt — but only if the landlord files in time.
The exceptions to the 7.5% IMT rate
The flat rate for non-resident buyers is not absolute. Three exceptions remove it, and two of them work by refund after completion.
A new tax treaty between Portugal and the United Kingdom
The convention signed in 1968 has been replaced. Withholding on dividends falls, and a purpose test now applies to structures.
Corporate tax falls to 19%, and to 17% by 2028
The headline IRC rate is on a set path downwards. For investors holding Portuguese property through a company, the arithmetic of that choice is moving.
Non-resident holiday-let owners and VAT
The small-business exemption no longer reaches operators without a Portuguese base. For them, VAT applies from the first euro of turnover.