Portugal Real Estate 2026: The 7.5% IMT Reality

The entry cost for non-resident buyers in Portugal has fundamentally changed.

Under the 2026 State Budget, residential purchases by tax non-residents are now subject to a flat 7.5% IMT (Property Transfer Tax). This replaces the old progressive scale, effectively increasing the upfront acquisition cost for holiday-home buyers and international investors.

Why this matters for your 2026 transition:
- The Residency Incentive: This flat rate is a "residency filter." If you become a Portuguese tax resident within 24 months of your purchase, you may be eligible for a refund of the difference between the 7.5% flat rate and the lower resident brackets.
- The Rental Escape: Properties placed on the long-term rental market (under 'moderate rent' caps) can still qualify for the traditional progressive rates.
- A Shift in Strategy: This change isn't a deterrent; it’s an invitation. Portugal is incentivising those who intend to inhabit the local rhythm rather than just own a piece of it.

My take: In 2026, the "search" is the easy part. The strategy by which timing your residency, auditing local tax impacts, and understanding the long-term yield, is where the real value is found.
This is especially true for families and internationally mobile professionals thinking about Portugal as a lived base, not just a financial asset.

Before you look at the listings, let’s look at your timeline.

Read the full 2026 breakdown here: https://lnkd.in/e995pYJy