Changes to IMT to promote housing

Decree-Law No. 97/2026 of 20 May introduced a set of tax-relief measures aimed at promoting the supply of housing. We have previously referred to the changes to the VAT regime for housing construction works.

In this article, we analyse the changes to the Code of the Municipal Tax on the Onerous Transfer of Real Estate (IMT). In this respect, there are two significant changes.

A 7.5% rate for non-residents

Under the new wording of Article 17 of the IMT Code, the rate applicable to the acquisition of an urban building or autonomous fraction intended exclusively for housing, where the buyer is not a tax resident in Portugal, becomes 7.5%.

This rule does not apply in the following cases:

• Where the buyer becomes a tax resident in national territory within two years of the date of acquisition;
• Where the property is intended for letting for housing with a monthly rent not exceeding EUR 2,300.00, provided that the letting begins within six months of the acquisition and is maintained for at least 36 months (consecutive or non-consecutive) during the first five years.

Where one of these exceptions applies, an application must be submitted to the Tax Authority for a refund of the difference between the tax paid and the amount that would result from applying the general rates.

Change to the IMT payment deadline

Until the entry into force of the Decree-Law under analysis, the IMT due on the acquisition of real estate had to be paid on the very day of assessment or on the first business day following it.

With the publication of the new regime, payment may now be made on the day of assessment or within the following 30 days, providing greater flexibility in obtaining and paying the respective payment slip.

It should be noted, however, that proof of payment is still required in order to execute the deed and subsequently register the acquisition.

Consult VPA for legal advice on the tax-relief measures currently in force, as well as on the respective deadlines and their practical application.