Very little, if you are buying in Lagos from abroad. Portugal’s 2027 State Budget proposal, delivered to Parliament on 8 October 2026, raises the IMT brackets by 2.3% and leaves IMI, stamp duty and the flat 7.5% non-resident IMT rate untouched. For a non-resident buyer, the saving is zero.
If you have been wondering whether to wait for the budget before buying, I have gone through the proposal and PwC’s analysis of it. Below is what the document actually contains, what it is worth on a typical €550,000 home in Lagos, and why my answer to that question is no.
What does Portugal’s 2027 State Budget change for property buyers?
Three things, and only one of them touches most of my buyers.
- IMT brackets indexed by 2.3%. The threshold below which a permanent home pays no IMT rises from €106,346 to €108,792. Every bracket above it moves up by the same 2.3%.
- IMT Jovem extended and indexed. Buyers aged 35 or under, purchasing a first permanent home, pay no IMT or stamp duty up to €338,141 (from €330,539), with 8% on the excess up to €676,185.
- No change to the IMI, Stamp Duty or VAT codes. PwC calls it a budget of continuity: values updated, expiring regimes extended, percentages adjusted.
Everything else in the housing chapter is either already law from the May 2026 package (the 6% VAT on qualifying construction, the 10% IRS rate on moderate long-term rents) or aimed at employers who house their staff. The government’s own report forecasts IMT receipts falling 2.3% and IMI receipts falling 5.6% in 2027. That is a revenue forecast, not a tax cut for you.
What the budget is worth on a €550,000 home in Lagos
Take a British couple looking at a €550,000 townhouse in Lagos as a holiday home. Here is the IMT under the 2026 scale against the 2027 proposal, for them and for the three other buyer profiles the budget treats differently.
| Buyer profile | IMT 2026 | IMT 2027 (proposal) | Saving |
|---|---|---|---|
| Non-resident, flat 7.5% | €41,250 | €41,250 | €0 |
| Portuguese tax resident, holiday home | €31,300 | €31,008 | €292 |
| Portuguese tax resident, permanent home | €30,237 | €29,920 | €317 |
| Resident aged 35 or under, first permanent home | €17,557 | €16,949 | €608 |
Two things stand out. The biggest saving in the whole table is €608, and it goes to a profile almost none of my international clients fit. And above €648,511 for a holiday home, where the single 6% rate applies in both years, the saving is exactly zero for residents too. If you want to see where your own target price lands, the closing cost calculator runs the IMT and stamp duty in two minutes, and if you are selling to fund the move, see what your current home is worth with the SunnySteve estimate.
Why the 7.5% rate is the number that matters
Since Decreto-Lei 97/2026 took effect in late May, anyone who is not a Portuguese tax resident pays a flat 7.5% IMT on residential property, with no brackets at all. That is why indexing the brackets does nothing for a non-resident: the brackets are simply not in their calculation. I set out how that rate works, and why there was never a 1 September deadline, in my August post on the 7.5% IMT.
There is one indirect effect worth knowing. If you buy as a non-resident and become a Portuguese tax resident within two years of the deed, you can apply to have the difference between the 7.5% and the normal scale cancelled. Buy in 2027 and that normal scale is the indexed 2027 one, so the refund is a few hundred euros larger. It is a rounding error on a move, not a reason to time one.
Should you wait for the budget before buying?
No, and the calendar makes the case on its own. The general debate is on 27 and 28 October, committee amendments run through November, and the final global vote is scheduled for 24 November 2026. If it passes, it applies from 1 January 2027. Every figure in this post is a proposal until then.
The upside of waiting, for a resident holiday-home buyer at €550,000, is €292. The cost of waiting is whatever happens to the house you wanted in the meantime. In the €400,000 to €700,000 band in Lagos, Praia da Luz and Burgau, a well-priced home with its paperwork in order can easily be gone in two months. What I tell buyers is simple: decide on the property and the price, not on the budget.
The more useful planning question is residency. If you intend to move here, the timing of your tax residence against your deed date is worth far more than anything in this budget, because it is the difference between 7.5% and the normal scale. That conversation belongs at offer stage, with your lawyer and accountant in the room.
This is a summary of a budget proposal, not tax advice. Rules can change during the parliamentary process, so confirm your own position with a Portuguese lawyer or accountant before you sign.
Frequently Asked Questions
Does Portugal’s 2027 budget change the 7.5% IMT for non-resident buyers?
No. The OE2027 proposal delivered to Parliament on 8 October 2026 does not amend the flat 7.5% IMT that non-resident buyers pay on residential property under Decreto-Lei 97/2026. A non-resident buying a €550,000 home in Lagos pays €41,250 in IMT in 2026 and would pay the same €41,250 in 2027.
Will IMI go up in Portugal in 2027?
Not through the budget. PwC’s reading of the proposal lists the IMI code among the four tax codes left unchanged, so the rate band and the rules stay where they are. In Lagos the municipal IMI rate is set separately by the council each year, so check that decision rather than the State Budget.
Can a foreigner use IMT Jovem when buying in Portugal?
Only if they meet the same conditions as anyone else: aged 35 or under at the deed, buying a first home as their own permanent residence, not owning residential property now or in the previous three years, and not a dependant for IRS. The test is age and permanent-home use, not nationality, so most international buyers I work with in the Western Algarve do not qualify.
When will Portugal’s 2027 State Budget take effect?
If Parliament approves it, on 1 January 2027. The general debate is scheduled for 27 and 28 October 2026, amendments are discussed in committee through November, and the final global vote is set for 24 November 2026. Until then every figure in the proposal can still change.
Weighing a purchase in Lagos and want the real numbers for your situation, including the residency timing? Tell me what you are looking for and I will map the tax and the timeline before you make an offer.
