Moving to Portugal (2026): buying a home before or after you become tax resident

Is it cheaper to buy before or after becoming tax resident in Portugal?

At the deed, buying after becoming tax resident costs less. In the end, the cost can be the same either way. On a €350,000 home bought as the buyer’s own home:

When the buyer buys	IMT paid at the deed	IMT in the end
Already tax resident	€14,236.65	the same
Not yet resident, becomes resident within 2 years and claims the refund	€26,250	€14,236.65, after the refund
Not resident, does not become resident within 2 years	€26,250	the same
Was tax resident in Portugal before	€14,236.65	the same

Stamp duty of 0.8% is the same in every case. The resident rows assume the home becomes the buyer’s permanent residence; a second home pays the other-housing rates instead.

How does the 7.5% rule work for someone moving to Portugal?

Since 25 May 2026, a buyer who is not tax resident in Portugal pays a flat 7.5% IMT on any home, with no exemption or reduction (CIMT art. 17(10), added by Decree-Law 97/2026). The law lists three exceptions, and two of them concern people who move:

• (a) the buyer was tax resident in Portugal at some time before: the normal rates apply at the deed;
• (b) the buyer becomes tax resident within 2 years of the purchase: the 7.5% is paid at the deed and the difference is refunded later.

The third exception, letting the home at a moderate rent, is covered in the non-resident buyers guide.

Buyer not yet resident, €350,000 home, at the deed

Line	Kind	Amount	Estimate range	Share of price
IMT, non-resident buyer (flat 7.5%)	Tax	€26,250		7.50%
Stamp duty (Imposto do Selo, 0.8%)	Tax	€2,800		0.80%
Lawyer (market rate)	Fee, estimate	€4,375	€3,500 to €7,000	1.25%
Deed and land registration (Casa Pronta)	Fee, estimate	€375	€375 to €700	0.11%
Taxes		€29,050		8.30%
Fees, typical		€4,750	€3,875 to €7,700	1.36%
Total on top of the price		€33,800	€32,925 to €36,750	9.66%

How do you claim the refund after moving?

The Tax Authority cancels, on the buyer’s request, the difference between the IMT paid and the IMT under the normal rates (CIMT art. 17(11)). The steps in the law and in the Tax Authority’s instructions (Ofício Circulado 40131/2026, point 4):

1. Become tax resident in Portugal within 2 years of the purchase date.
2. Within 6 months of becoming resident, file a request with the Tax Authority (art. 17(12)). It is processed as a reclamação graciosa, a formal administrative complaint; becoming resident counts as the new fact that opens it.
3. The refund is the IMT difference only. Stamp duty is not refunded, because it is the same for residents.

The refund is not automatic. A tax resident must also report a change of residence status to the Tax Authority within 60 days (General Tax Law art. 19(5)).

When does a person become tax resident in Portugal?

The test is in article 16 of the IRS Code. A person is resident for a year if, in any 12-month period starting or ending in that year:

• they spend more than 183 days in Portugal, consecutive or not; or
• they have a home in Portugal in conditions that suggest they intend to keep and live in it as their habitual residence.

A day counts if it includes a night in Portugal (art. 16(2)). Residence starts on the first day of the stay; a person who was resident on any day of the previous year is resident from the first day of the year (art. 16(3)).

What if one spouse is already resident?

The Tax Authority treats a married couple buying in a community of property regime as one purchase, and applies the 7.5% only if both spouses are non-resident and neither was ever resident (Ofício Circulado 40131/2026, point II.3). So if one spouse is already resident, or was in the past, the couple pays the normal rates at the deed. If both are non-resident and one becomes resident within 2 years, the couple can claim the refund (point 4.1). Couples married under separation of property, and unmarried co-owners, are checked one by one.

Does the own-home rate need you to live there?

Yes. The own permanent home rates, and the young buyer exemption, apply only if the home becomes the buyer’s permanent residence within 6 months of the purchase and is not given another use, such as being let, within 6 years. Selling the home, a change in the household and a job move more than 100 km away are not treated as another use (CIMT art. 11(8)). If the conditions are not met, the reduced rate is lost and the difference becomes due.

Can a young buyer moving to Portugal use IMT Jovem?

A non-resident cannot use the exemption at the deed, because the 7.5% rule excludes every exemption and reduction. A buyer aged 35 or under who becomes resident within 2 years can claim the refund of the difference from the normal rates. The law describes the refund as the difference from “the rates in n.º 1” of article 17, which include the young buyer table; it does not spell out how the exemption is treated in the refund. The under-35 exemption guide sets out the conditions.

What this guide does not cover

• Visas and residence permits, which are separate from tax residence. Whether a purchase can lead to one is covered in does buying property give residency?.
• Income tax after moving, including any special regimes for new residents.
• Exit taxes or rules in the country the buyer leaves.
• Buying through a company.

Work out IMT as a buyer moving to Portugal