Tax guide for Portugal: tax on rent and sale

What you need to know

1. What tax do I pay on rent if I live abroad?

   Tax on rent from a home in Portugal, for an owner who lives abroad: Rent from a home let to live in is taxed at a flat 25% for an owner living abroad, on the rent after costs (repairs, the building’s charges, the yearly property tax; not mortgage interest). From 2026 to 2029 the rate is 10% when the rent is €2,300 a month or less. Longer leases pay less: 15% for 5 to 10 years, 10% for 10 to 20, 5% for 20 or more. People living in Germany or France may choose the normal tax bands instead. You file a yearly return between 1 April and 30 June. Holiday letting needs a council registration and is taxed as business income. Within 15 days of buying, name a tax representative in Portugal or sign up for the tax office’s electronic mail (not needed if you live in the EU).

   Where this comes from

   • CIRS art. 72 Taxas especiais (AT, with notes on Lei 82/2023 art. 236 and Lei 56/2023 art. 50), read 16 October 2026

2. How is the gain taxed when I sell from abroad?

   Tax when an owner who lives abroad sells a home in Portugal: Only half of the gain is taxed, at the normal bands of 12.5% to 48%, and your income from everywhere sets the rate. After 2 years the price you paid is raised by an official inflation table (bought in 2022: × 1.08 for a sale in 2026). Buying costs, and improvements made in the last 12 years, come off. The buyer does not hold back tax; you report the sale in that year’s return.

   Where this comes from

   • CIRS art. 43 Mais-valias, read 16 October 2026

3. What yearly property tax does a home in Portugal pay?

   Portugal's yearly property tax IMI (Imposto Municipal sobre Imoveis, a council tax on the property's official tax value) is 0.3% to 0.45% a year for urban property and 0.8% for rural land. Each town council sets its rate within that range every year, and can cut it for owner-occupied homes by 20%, 40% or 70% for families with one, two or three dependants. Property held by companies in tax havens pays 7.5%.

   Where this comes from

   • AICEP Portugal Global (government trade and investment agency), tax system page on IMI, updated May 2026, read 17 October 2026

4. Is there an extra yearly tax on large property holdings?

   Portugal adds an extra yearly property tax, AIMI (Adicional ao IMI), on large holdings of homes and building land. Each individual gets a 600,000 euro allowance, or 1,200,000 euros for a couple who choose to be taxed together; above that the rate is 0.7%, rising to 1% on the part above 1 million euros and 1.5% above 2 million euros. Companies pay 0.4%.

   Where this comes from

   • AICEP Portugal Global (government trade and investment agency), tax system page on IMI and AIMI, updated May 2026, read 17 October 2026

5. Is there tax when an heir receives a home?

   Inheriting a home in Portugal: No inheritance tax, but a 10% stamp duty on the official value of a home in Portugal, whoever died and wherever the heir lives. Husband, wife or partner, children, grandchildren, parents and grandparents pay nothing. Brothers, sisters and others pay 10%.

   Where this comes from

   • Código do Imposto do Selo, full PDF incl. Tabela Geral (arts. 4, 6, 13, 26, 60; items 1.1, 1.2, 2, 17), read 16 October 2026

6. What must heirs do after an owner dies?

   Inheriting a home in Portugal: The death must be reported to a tax office by the end of the third month after the month of death; registering the heirs costs €375.

   Where this comes from

   • Código do Imposto do Selo, full PDF incl. Tabela Geral (arts. 4, 6, 13, 26, 60; items 1.1, 1.2, 2, 17), read 16 October 2026

7. Does the Non-Habitual Resident (NHR) tax scheme still exist?

   Portugal's Non-Habitual Resident (NHR) tax regime, which gave newcomers low tax rates for 10 years, was repealed from 1 January 2024 and replaced by the Tax Incentive for Scientific Research and Innovation (IFICI). People already registered as NHR by 1 January 2024 keep all its benefits until their original 10 years end.

   Where this comes from

   • Autoridade Tributaria e Aduaneira, Portal das Financas page Register as a Non-Habitual Resident, read 17 October 2026, read 17 October 2026