7.5% IMT for non-residents: the Tax Authority clarifies how it works for individual purchases and between spouses
The taxation of home purchases by non-residents changed in 2026.
Decree-Law No. 97/2026 of 20 May introduced into Article 17 of the IMT Code (Portuguese property transfer tax) a flat rate of 7.5% applicable, in certain circumstances, to the purchase by non-residents of urban properties or autonomous units intended exclusively for housing.
However, applying the new rule raised a particularly important question: what happens when the property is bought by two people or by a couple and only one of them is, or has been, resident in Portugal?
The Tax Authority (AT) has clarified its interpretation in Circular Letter No. 40131/2026 of 4 September.
1. Purchase by a single person
Where there is only one buyer, namely a single, divorced or widowed person or someone married under the separation of property regime, and that person is non-resident at the time of the purchase, the general rule is that the 7.5% rate applies.
There is, however, an important exception.
If the buyer has previously been considered tax resident in Portugal under Article 16 of the IRS Code, the Tax Authority takes the view that the general IMT rates apply rather than the special 7.5% rate.
In other words, for this purpose, it is not only relevant where the buyer lives on the day the deed is signed.
Their tax residence history may also be decisive.
2. Purchase in co-ownership
When two or more people buy the property in co-ownership, the Tax Authority considers that there are as many individual taxable transfers as there are co-owners.
Consequently, the requirements are assessed individually for each buyer.
This may lead to situations in which two buyers of the same property are subject to different tax treatment.
3. What if the buyers are married under a community property regime?
Here the solution is different.
When the purchase is made by a couple married under a community property regime, the Tax Authority considers there to be a single taxable event, giving rise to an undivided right with two holders and a single tax assessment.
According to the Circular Letter, the 7.5% rate will only apply when both spouses:
- are non-resident at the time of purchase;
- have never previously been considered tax resident in Portugal.
If one of the spouses does not meet these conditions, the requirement set out by the Tax Authority for applying the special rate is no longer met.
This is one of the most relevant clarifications in the Circular Letter.
4. What if the buyer moves to Portugal after the purchase?
The Code also provides for a correction mechanism.
If a purchase was taxed at the 7.5% rate and, within two years of the purchase, the buyer becomes resident in Portugal, there may be a right to have the tax annulled and the difference compared with the general rates refunded.
In the case of a purchase by spouses under a community property regime, the Tax Authority clarifies that a change of residence by one of the spouses may also give access to the mechanism provided for in the law.
5. The refund is not automatic
This point should not be overlooked.
The tax is not automatically recalculated by the Tax Authority.
The taxpayer must use the procedure provided for by law, by filing an administrative complaint (reclamação graciosa) within the applicable deadline counted from the relevant subsequent event.
Anyone buying a property before moving permanently to Portugal should therefore keep the relevant documentation and carefully monitor the deadlines.
Buy before or after moving to Portugal?
The change makes this question relevant from a tax perspective.
In certain cases, buying a property while still non-resident may result in an IMT assessment significantly different from the one that would result from a purchase made after moving residence.
This does not mean that residence should be artificially changed for tax reasons.
It means that, when a move to Portugal is already planned, the order and timing of the transactions should be assessed in advance.
This is legal and tax planning, rather than correcting problems afterwards that could have been avoided.
Frequently asked questions
1) Do all non-residents pay IMT at 7.5%?
No. There are exceptions and the buyer’s tax residence history may be relevant.
2) If two people buy together, do both necessarily pay 7.5%?
Not necessarily. In co-ownership, the requirements are assessed individually.
3) And if they are married under a community property regime?
According to the Tax Authority, the 7.5% rate only applies if both are non-resident and neither has previously been resident in Portugal.
4) Can I recover part of the IMT if I move to Portugal later?
Under certain conditions, yes, if residence is established within the period provided for by law. The refund must be requested through the appropriate procedure.
How can we help?
URB Law Services assists Portuguese and foreign buyers with property transactions in the Algarve and throughout Portugal, including prior IMT analysis, structuring the purchase, due diligence, promissory contracts (CPCV), deeds and registrations.
Especially when a future move to Portugal is planned, the tax position should be analysed before signing, not only when the tax assessment arrives.
Contact us to find out more
