Portuguese government raises property purchase tax for non-residents

The Portuguese government has announced plans to raise the tax on house purchases by non-residents in a bid to reduce overseas demand for affordable homes and bump up the supply.

The Portuguese prime minister Luis Montenegro announced the increase in the Municipal Property Transfer Tax (IMT) last week (25 September).

Ugo de Grenet, head of wealth protection, Continental Europe and Latin America, at Utmost Wealth Solutions, noted that Portugal has been successful in attracting wealthy expats thanks to its good climate, lifestyle, no inheritance tax and the golden visa.

He added that relocation decisions are best based on a broad mix of lifestyle and long-term personal considerations, not solely on tax considerations.

“The global wealth community is growing and becoming increasingly mobile, and with a record 142,000 millionaires estimated to be relocating internationally this year, the battleground for attracting and retaining affluent families is hotter than ever,” he said.