# Portugal real estate tax guide [Living in Portugal](/living-in-portugal/) Guide Law as at 19 October 2026 6 min read Signed by our advisers · 4.7 on Google, 43 reviews Portuguese property bears IMT and 0.8% stamp duty on purchase, annual IMI, and income tax on rent and on 50% of a sale gain. Since 25 May 2026, a non-resident buying property used only for housing generally pays IMT at 7.5%, with the excess over the ordinary rates cancelled on request if they become resident within two years or let it at a capped rent. An expat who owns property in Portugal pays IMT and stamp duty when buying, IMI every year, AIMI when the taxable value of their residential property and building land passes EUR 600,000, and IRS on the rent and on the gain from a sale. These taxes apply whether or not the owner lives in Portugal, and a non-resident buying a home now generally pays IMT at a single 7.5% rate. The 2026 rates are below. This guide answers five questions: - what tax may apply when you buy - what annual property taxes may apply while you hold - how rental income is usually analysed once the property is let - how gains on sale are usually reviewed before filing - whether your residency, ownership structure, or another country changes the answer ## Portuguese property taxes at a glance (illustrative, 2026, mainland) - IMT, the property transfer tax: for mainland secondary housing under the ordinary 2026 table, a 6% single rate applies above EUR 633,931 through EUR 1,150,853, and 7.5% above that. A separate 7.5% rate, with no exemption or reduction, generally applies to a non-resident buyer of a property used only for housing, for acquisitions covered from 25 May 2026 (under the law of 20 May). It does not apply to a buyer who has been resident in Portugal, who becomes resident within two years of the purchase, or who lets the property as housing, starting within six months of the purchase and within the rent limits of that decree-law, for at least 36 months in the first five years; in the last two cases the AT cancels the difference on a request made within six months. - Stamp duty on the purchase: **0.8%**. - IMI (annual municipal tax): **0.3% to 0.45%** of the taxable value (VPT) for urban property, set by your municipality, and **0.8%** for rustic property. - AIMI (additional to IMI): individuals deduct **EUR 600,000** from the aggregate relevant taxable value. The base rate is **0.7%**, with marginal rates of **1%** and **1.5%** at the statutory aggregate-VPT thresholds of EUR 1,000,000 and EUR 2,000,000. For qualifying joint assessment, both the deduction and band thresholds double. These individual rules concern relevant residential urban property and building land; company ownership has separate rules. - Rental income: the ordinary autonomous rates are **25%** for residential leases and **28%** for other lettings. Qualifying permanent-home leases can use **15%** for terms of at least 5 but under 10 years, **10%** for at least 10 but under 20 years, or **5%** for at least 20 years, subject to the statutory conditions. Separately, the moderate-rent incentive introduced in 2026 can apply a **10%** rate to qualifying residential rents within the legal moderate-rent ceiling for income from 2026 through 2029, unless a more favourable rate applies. Residents may elect aggregation where available. - Capital gains on a sale: residents generally include **50%** of the relevant property gain. Since 2023, non-residents also use the 50% inclusion mechanism, with worldwide income considered to determine the progressive rate on the Portuguese property gain. Next step **Selling property in Portugal.** The tax on the sale, before you sign. Buying or letting instead? The Tax Consultation below covers the taxes and reliefs for your case. [Selling property in Portugal](/services/selling-property/) ## Start with the right question Real estate tax in Portugal is easier to manage when you separate the lifecycle of the property into four stages: - buy - hold - rent - sell ## Buy: what to check before you sign A residential purchase may involve transfer tax and stamp duty, depending on the transaction and financing facts. The Portuguese Tax Authority’s property-purchase guidance also makes clear that the filing process, payment proof, and property identification details matter before completion. That means the tax review before signing should normally cover: - the nature of the property - the intended use of the property - whether the property is being acquired individually or through a legal structure - whether any relief or exemption may apply under the rules in force for the acquisition year - whether there is mortgage-related stamp duty or financing documentation to account for - whether the values being used in the filing process have been checked against the property records ## Hold: annual taxes do not end at completion Owning property in Portugal is not only about the purchase. The Tax Authority’s annual-property-tax guidance separates the recurring position into at least two taxes: - IMI, the annual municipal property tax - AIMI, an additional property tax The position can change depending on: - the property’s taxable value - the type of property - whether the property is urban or rural - whether the property falls inside or outside the AIMI scope - the municipality involved - the ownership profile on the relevant assessment date The annual holding file should usually include: - the current caderneta or equivalent property record - the taxable value used by the authorities - the ownership position on the relevant date - any municipal notices or valuation changes - evidence of any circumstance being relied on for relief, exemption, or special treatment ## Rent: rental income needs its own analysis Portuguese Tax Authority guidance on Category F makes the usual starting point clear for straightforward rental situations: rental income from property is commonly analysed there unless the facts place it elsewhere. For landlords, the working file should usually separate: - gross rents received - contract and lease evidence - condominium and maintenance records - property taxes connected to the let property - repair and conservation evidence - items that are not deductible even if they were commercially relevant to the owner Only expenses that the applicable rule allows reduce the income-tax result. For new residents, rental income also needs to be reviewed alongside residency status, any foreign rental income, and any treaty allocation issues. ## Sell: a property sale is usually more technical than the purchase Portuguese tax law can treat gains on the sale of real estate as taxable, and the final route then depends on residency, use of the property, and any special relief framework in force. Before sale, a proper review usually needs to confirm: - who is selling - whether the seller is tax resident in Portugal or not for the relevant year - whether the property was the seller’s own permanent home or not - whether any reinvestment regime may be available under the rules in force - which acquisition and sale documents support the calculation - which later works, costs, or improvements are properly evidenced - whether another country also taxes the same gain or asks for disclosure ## Ownership structure: useful to review, dangerous to oversimplify Property is sometimes bought through an individual, and sometimes through a Portuguese or foreign company. The ownership review usually tests: - transfer-tax exposure on acquisition - annual property-tax implications while the property is held - income-tax treatment once the property is rented or sold - corporate compliance and accounting burden, if an entity is used - succession, co-ownership, and cross-border implications - whether the structure still matches the real purpose of the property ## Cross-border property files need coordination early A file can become cross-border because: - the owner is not tax resident only in Portugal - the owner moved into or out of Portugal during the holding period - rental income is also reportable abroad - the sale gain is also visible to another tax authority - the property is held alongside foreign assets in the same ownership plan - the property forms part of an inheritance, gift, divorce, or broader family restructuring ## Frequently asked questions ### What taxes apply when I buy property in Portugal? A purchase can involve IMT, the property transfer tax, and stamp duty. The treatment depends on the transaction, any financing, the type of property and how you intend to use it. ### What annual property taxes apply while I hold property in Portugal? IMI is the annual municipal property tax. AIMI is an additional property tax that can apply depending on the property and how it is owned. ### How is rental income from a Portuguese property taxed? Rent is an income-tax matter, separate from the annual taxes on owning the property. It is normally treated as rental income under Category F unless the activity falls into another category. The return includes the rent and the costs that qualify for deduction. ### What affects the tax when I sell a Portuguese property? A sale can create a taxable capital gain. The calculation depends on who owns the property, the seller's tax residence for that year, how the property was used and whether a relief applies. ### When is it useful to review the property tax position? Before you commit to buying, selling or changing how the property is used. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [Portugal capital gains tax 2026: residents and non-residents](/guides/capital-gains-tax-portugal/) Check Portuguese capital gains on property and investments: how tax is calculated, eligible costs, reinvestment conditions and residence status. - Guide · Law as at 19 October 2026 ### [Portugal inheritance tax: stamp duty explained](/guides/portugal-inheritance-gift-tax-guide/) Who pays tax on an inheritance or gift in Portugal: stamp duty at 10%, the family exemptions, property gifts, reporting and cross-border estates. - Guide · Law as at 13 June 2026 ### [Moving to Portugal: tax checklist for 2026](/guides/moving-to-portugal-tax-checklist/) Plan the tax steps before and after a move to Portugal: home-country departure, tax residence, NIF, income records, IFICI and your first return. ## Tell us about your situation We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/portugal-real-estate-tax-guide/ General guidance only. Individual facts govern.