20 May 2026 · 3 min read
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.
By ATLANTIC’s property tax team
A non-resident buying residential property in Portugal pays IMT at a flat 7.5%. The law that set that rate also set out when it does not apply — and in two of those cases the buyer claims the difference back after the deed.
The first exception looks backwards. A buyer who has previously been tax resident in Portugal is outside the flat rate and is charged on the ordinary bands.
The second looks forwards. A buyer who becomes tax resident in Portugal is likewise outside it. Here the mechanism matters: the tax is paid at 7.5% at the time of purchase, and the buyer applies to the tax authority to have the difference refunded once residence is established. It is a claim, with a form and a deadline, not an automatic correction.
The third concerns what the property is for. Where the property is let for housing at a rent within the moderate limits, the flat rate does not apply, and the refund route is the same as for the second.
The tax authority has since clarified the position of married couples. The flat rate applies only where both spouses are non-resident and neither has a history of Portuguese residence — which means a couple where one spouse has that history is treated differently from one where neither does.
One practical detail sits alongside all of this. IMT is payable on the day of assessment or within the thirty days that follow. The timetable is longer than it was, but a refund claim that is never made is simply tax that was overpaid.
Key takeaways
- Previous Portuguese tax residence takes the buyer out of the 7.5% rate.
- Becoming resident, or letting the property at a moderate rent, allows the difference to be reclaimed — on application, not automatically.
- For married couples, the flat rate applies only where both spouses are non-resident with no Portuguese residence history.
Sources: Decreto-Lei n.º 97/2026, de 20 de maio, artigo 17.º do Código do IMT, retificado pela Declaração de Retificação n.º 26/2026/1; e ofício circulado da Autoridade Tributária e Aduaneira.
Download the 2026 Property Tax Guide
This article provides general information and does not constitute tax advice.