One honest caveat. The tax authority has not, to my knowledge, published a formal clarification settling it in writing. So this is a strong professional consensus rather than a ruling. Have your lawyer confirm the position before you sign anything, which you should be doing anyway.<\/p>\n\n Two new regimes start that day, and neither of them is about buyers:<\/p>\n\n Both are aimed at developers and landlords supplying long-term rental stock. If you are a Dutch couple buying a two-bed in Lagos to live in, neither applies to you, and neither is a reason to rush a purchase.<\/p>\n\n Here is the real arithmetic, comparing the flat 7.5% against the 2026 progressive scale for a home that is not your permanent residence. Bracket values are PwC’s Guia Fiscal 2026.<\/p>\n\n Two things in that table are worth more than the headline. First, the extra cost sits in a fairly narrow band of roughly \u20ac10,000 to \u20ac15,000 across most of the Western Algarve market, because above \u20ac330,539 the standard marginal rate is already 8%, which is higher than 7.5%.<\/p>\n\n Second, and almost nobody mentions this: above \u20ac1,150,853 the change costs a non-resident nothing at all. The standard single rate at that level is already 7.5%. If you are buying a villa on the Lagos or Praia da Luz coast above roughly \u20ac1.15m, your IMT bill is identical either way.<\/p>\n\n The 7.5% behaves less like a tax and more like a refundable deposit, provided you meet one of two conditions. On application, the tax authority can cancel the difference between what you paid and what the normal rates would have produced.<\/p>\n\n Both need planning before you sign, not after. The residency timeline in particular is something to map out at offer stage, because two years goes quickly when a move involves selling a house somewhere else.<\/p>\n\n Do not compress a purchase to hit a date that does not exist. A rushed escritura means rushed due diligence, and in this region that is where the real money is lost: unlicensed extensions, a caderneta that does not match what is built, a rustic plot someone has described as building land. Those cost far more than \u20ac10,000 to unpick.<\/p>\n\n If you are buying to live here, budget the 7.5% as cash you will get back, and plan the residency timeline properly. If you are buying a holiday home you will not let out and will not move into, it is a real cost, and it belongs in your offer arithmetic rather than your completion date. It is also worth knowing what else the same decree gives you, including the 6% VAT rate on qualifying construction work<\/a>, which can be worth considerably more than the IMT costs you.<\/p>\n\n And if anyone tells you the window shuts on 31 August, ask them which article of the decree they are reading.<\/p>\n\n![\"Comparison](\"https:\/\/sunnysteve.com\/wp-content\/uploads\/2026\/08\/portugal-7-5-imt-no-september-deadline-cover.png\")
What 1 September 2026 actually changes<\/h2>\n\n
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What the 7.5% actually costs a non-resident buyer<\/h2>\n\n
Purchase price<\/th> IMT on the progressive scale<\/th> Flat 7.5% for non-residents<\/th> Extra you pay<\/th><\/tr><\/thead> \u20ac250,000<\/td> \u20ac8,106<\/td> \u20ac18,750<\/td> \u20ac10,644<\/td><\/tr>\n \u20ac350,000<\/td> \u20ac15,300<\/td> \u20ac26,250<\/td> \u20ac10,950<\/td><\/tr>\n \u20ac500,000<\/td> \u20ac27,300<\/td> \u20ac37,500<\/td> \u20ac10,200<\/td><\/tr>\n \u20ac750,000<\/td> \u20ac45,000<\/td> \u20ac56,250<\/td> \u20ac11,250<\/td><\/tr>\n \u20ac1,000,000<\/td> \u20ac60,000<\/td> \u20ac75,000<\/td> \u20ac15,000<\/td><\/tr>\n \u20ac1,200,000<\/td> \u20ac90,000<\/td> \u20ac90,000<\/td> \u20ac0<\/td><\/tr>\n<\/tbody><\/table><\/figure>\n\n The two ways to get the difference back<\/h2>\n\n
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What this means if you are buying now<\/h2>\n\n
Frequently Asked Questions<\/h2>\n\n