Portugal Slaps Higher Taxes on Foreign Home Buyers to Tackle Housing Crisis

New Tax Measures to Boost Affordable Housing

In a bold move to address the housing shortage, the Portuguese government has announced an increase in the tax on house purchases by non-residents. This initiative is part of a broader strategy to enhance the availability of affordable homes in this southern European nation.


Prime Minister Luis Montenegro revealed the plan to raise the IMT tax following a cabinet meeting in Lisbon. He emphasized that this is one of several measures designed to alleviate the country's ongoing housing crisis. The government aims to curb foreign investment in real estate, which has been driven by incentives like the golden visa program, and redirect efforts towards supporting local residents.