Property Taxes in Portugal: What Foreign Buyers Need to Know (2025)

First-home owners can qualify for a temporary three to eight year exemption depending on VPT and family situation. Foreign buyers with a second home in Portugal do not qualify for this exemption.

Imposto do Selo, stamp duty

In addition to IMT, a one-off stamp duty of 0.8% applies to the transaction value. This is a separate levy settled in the same notarial deed.

AIMI, wealth tax on large portfolios

For individuals with a total VPT above €600,000, AIMI applies. The rate is 0.7% on the portion between €600,000 and €1,000,000, and 1% on the portion between €1,000,000 and €2,000,000. Above €2 million the rate is 1.5%. Companies holding property pay AIMI from the first euro at 0.4%, scaling up in the same brackets.

Rental income

Non-residents are taxed in Portugal on rental income. The standard rate is 28% on net income, with the option to choose the autonomous regime at 25%. Maintenance costs, IMI and notary fees are deductible. The full overview is on the Portuguese tax authority's portal.

Portugal–Netherlands tax treaty

The bilateral treaty between Portugal and the Netherlands prevents double taxation on real estate income. The principle: real estate is taxed in the country where it is located. The Netherlands grants relief on its own levy via the proportional exemption method in box 3 (see also our article on box 3 and foreign property).

End of the NHR regime

The well-known Non-Habitual Resident regime is largely closed to new applicants from 2024. Existing decisions remain in force under conditions. Since 2024, Portugal has the IFICI regime (Incentivo Fiscal à Investigação Científica e Inovação), offering favourable tax conditions for specific professions, a more narrowly defined successor to NHR.

Practical points

• A Portuguese tax number (NIF) is required for any property transaction.
• Non-EU buyers often appoint a tax representative, although the legal obligation has been relaxed since 2022.
• IMT and stamp duty must be paid before the notarial deed.

This article is informational. Tax rules and rates can change. Always consult a tax advisor familiar with both Portuguese and Dutch tax law for your specific situation.

Sources: Autoridade Tributária e Aduaneira · PwC Tax Guide Portugal 2025 · Portugal–Netherlands treaty

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