Back to Resources
Optimize your position
Tax Consulting
Understanding tax implications of property ownership in Portugal. IFICI (the regime that replaced NHR in 2024), capital gains, and property taxes explained.
Property Purchase Taxes
Taxes payable when buying property in Portugal. Rates are revised with each state budget — confirm the figures for the year you buy.
- IMT (transfer tax): progressive rates that vary by price, by whether the home will be your main residence, and by buyer profile
- Stamp duty: 0.8% on the purchase, charged on the higher of the price or the fiscal value (VPT)
- Buying with a mortgage adds a separate stamp duty on the loan itself, at a rate that depends on the term
- Reductions and exemptions exist (for example for buyers aged 35 or under buying a first main home) but are conditional — check whether you qualify before you sign
- Rules for buyers who are not Portuguese tax residents changed in 2026 and are being contested in court; confirm the position with a tax adviser before making an offer
- Classification (rural vs urban, residential vs other use) changes both the rate and how it is calculated
Ongoing Property Taxes
Annual taxes and obligations for property owners.
- IMI (municipal property tax): 0.3%–0.45% of the fiscal value (VPT), set each year by your council — the Algarve councils differ from one another
- AIMI, an additional charge on residential property and building land above €600,000 per owner
- Rental income is taxed at autonomous rates that depend on the rent and the length of the lease; these have changed in several recent budgets
- There is no general wealth tax on net assets in Portugal — AIMI applies only to property above the threshold above, and is not the equivalent of a European wealth tax
IFICI — the regime that replaced NHR
NHR closed to new applicants on 1 January 2024. What replaced it is narrower, and most people who moved here for NHR would not qualify.
- NHR was repealed by the 2024 state budget; the transitional window for late applications closed on 31 March 2025. Anyone already registered keeps it for the remainder of their 10 years
- IFICI (Incentivo Fiscal à Investigação Científica e Inovação) applies a flat 20% rate — but only to income from a listed qualifying activity, not to income in general
- Eligibility is tied to what you do, not to what you earn: research and higher education, certain highly qualified roles, certified startups. There is no route based on passive investment
- It runs for 10 years counted from the year you become tax resident, not from the year you apply — applying late costs you years
- Pensions are not covered. A retiree moving to Portugal today pays normal progressive rates on pension income
- You must not have been a Portuguese tax resident in the previous 5 years, and must register by 15 January of the year after you become one
Need Help?
Our experts are here to answer your questions.
+351 289 586 666Call to the national landline network
info@2ndhaus.ptRelated Guides
Ready to Start Your Property Journey?
Our experienced team is here to guide you every step of the way.