Portugal approves increase in property tax for foreigners

The Prime Minister has announced today an increase in the Municipal Property Transfer Tax (IMT) for home purchases by non-resident citizens of Portugal, excluding emigrants.

By TPN/Lusa, in News, Portugal, Property · 25 Sep 2025, 14:12 · 14 Comments

Credits: Supplied Image; Author: Client;

Luís Montenegro spoke during the Council of Ministers meeting, held at his official residence in São Bento, in a statement without the right to question.

The government has approved today a series of measures it believes will address the housing crisis, some of which had already been announced on Wednesday.

The Prime Minister also announced today an exemption from payment of the additional Municipal Property Tax (IMI) currently in effect for rental properties up to 2,300 euros.

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Comments

Do we know how much the increase will be? Is this designed to make it less financially attractive for non-resident foreign buyers to invest in speculation in our housing market?

By William Mansfield from Madeira on 25 Sep 2025, 15:34

This isn't a measure to address any housing 'crisis', but to assuage the unjustified grievances of those Portuguese who haven't put in enough effort into life to get a high enough income in return that enables them to purchase a house. There is a feeling of entitlement among some Portuguese that if they're from a certain area, they have some divine right to be able to afford to buy a palace there! Housing markets don't work like that, fortunately.
Figures released show non-residents accounted for only 5% of property purchases in Portugal, so they are marginal and don't deserve to be scapegoated for the issues facing some of the Portuguese. This is simply dog whistle politics, with the schmucks resenting those who can afford to buy their dream home. We should never level down in this manner. It's the politics of envy and the imposition of the lowest common denominator.

By Billy Bissett from Porto on 26 Sep 2025, 10:26

Was hoping to buy approx €800,000 villa, so this will push me away to another country, how will this help affordability for locals, just don’t understand it

By Nick from UK on 26 Sep 2025, 14:59

Do the Portuguese will now also pay more taxes in my country in Germany when theylive and buy a property there? Or in the US? Portugal really knows how to drive away people. Just like they drove away their own people for decades because of no jobs and too high taxes. Purely discriminatory and hostile. Communism still reigns in Portugal.

By Tania from Porto on 26 Sep 2025, 22:02

Of course non-resident foreigners are going to be upset by this; but when I see that 8 out of 10 houses in my neighborhood are empty 50 weeks of the year, it makes some sense. How can local services be paid for when there are so few residents? It's good for the economy when houses are bought and refurbished, but so great when they stand unoccupied for years.

By mark Holden from Algarve on 26 Sep 2025, 22:09

In any other country the young people who wish to get on the propperty ladder do so by hard work and saving and maybe some help from family, in portugal the young all want new cars (double taxed by the portuguese government) they all have smart phones etc do not believe in saving and doing without to get what they want, then they resent anyone from abroad who worked all their lives to retire in comfort

By Alice from Porto on 27 Sep 2025, 09:14

The shame of it is is that the government allow the building of 000s of holiday apartments and villas to support the building trade and more importantly the tourist trade. And then get upset when non residents buy them as holiday homes. I can understand upset over local residential housing in non tourist areas, but Portuguese don’t want to live in brand new holiday apartments. They’ve been built specifically as holiday homes / airbnb or AL rentals, not really for locals. And then the foreigners buying them get punished

By Penny Dawson from UK on 27 Sep 2025, 11:28

Unfortunately the above poster is spot on.

By j from Algarve on 27 Sep 2025, 12:55

Some of the comments are ridiculous. Non residents should pay much higher taxes. It would be better if the introduced the new NZ rule and prevent non resident foreigners from purchasing completely. These empty houses destroy a community.

By Sandra O'Rourkeglynn from Other on 27 Sep 2025, 13:00

But Mark Holden's comment: "8 out of 10 houses in my neighborhood are empty 50 weeks of the year" maybe more likely to be owned by Portuguese who live in Luxemburg or elsewhere and they only come back annually for their leave.

By L from Lisbon on 28 Sep 2025, 12:33

A punitive tax of this type seems counter productive as it will likely have a chilling effect on foreign real estate investment. Perhaps an occupancy tax on unused housing would be a better way to positively effect the housing market, particularly if taxes raised in this manner were used to fund affordable housing measures.

By Scott Keels from USA on 30 Sep 2025, 09:53

The Portuguese Government needs to fix healthcare system with 10 hour waits at hospital, up from 3 to 4 hours pre covid era, and enforce the rent guidelines of max 2 rents upfront. Pissing on foreigners isnt the anawer, lighting a fire under lazy locals is. Goddamn socialists here

By Dick from Porto on 03 Oct 2025, 12:07

Most these comments are BS I've been here 2 months and it's obvious most Portuguese people can't afford a property even if they do work hard. Wages here are lot lower compared to what I'm used to overseas but it seems to be just as expensive.

Add to that the holiday houses that are vacant most the year jeez.

By Dan from Lisbon on 21 Oct 2025, 01:38

The people who buy these overpriced properties then spend a lot of money renovating them which contributes a lot of money to your economy. We also employ a gardener,a pool man & a villa manager all year round not just when we are on holiday. The Algarve is an expensive place to visit never mind live .Also most of the holiday purchases are not In areas that the locals want to life ,but they are in areas where a lot of them have jobs . The Portugal government need to encourage more people to invest not less .We will not buy a car in Portugal until the government bring the duty down inline with all other EU countries .The fine they get for this is obviously not big enough.

By Marie musa from UK on 29 Nov 2025, 09:02