Portugal remains on many American shortlists, but the terms have shifted: buying a home no longer leads to a Golden Visa, citizenship now takes ten years of residence for most non-Europeans, and non-resident buyers face a flat 7.5% property transfer tax.
Each change arrived separately between 2023 and 2026, and together they alter the cost and the timetable of a move to Lisbon or the Algarve. This guide sets out where things stand in November 2026. It is general information, not legal or tax advice; Portuguese and US advisers should confirm how each rule applies to you.
How a purchase works
A foreign buyer first needs a Portuguese tax number (NIF), and usually a local bank account. Once a price is agreed, the parties normally sign a promissory contract, the CPCV, and the buyer pays a deposit; if the buyer withdraws, the deposit is generally lost, and if the seller withdraws, the seller may have to repay double. The sale is completed by deed, the escritura, signed before a notary or at a Casa Pronta office, after which ownership is registered at the land registry. An independent Portuguese lawyer checks the registry certificate, the licence to occupy, debts attached to the property and, for flats, the condominium position.
The costs: a new tax for non-residents
Under Decree-Law 97/2026, published on 20 May 2026, buyers who are not Portuguese tax residents pay IMT, the property transfer tax, at a flat 7.5% from the first euro on residential property, according to analyses by Andersen in Portugal and Greenback Tax Services. Residents still pay on a progressive scale. Exceptions include buyers who are already resident, those who become resident within two years (who can claim a refund) and those who let the home at a moderate rent within the government programme. Stamp duty of 0.8% is added, plus notary, registry and legal fees. Some Portuguese tax commentators have questioned whether a higher rate for non-residents is compatible with EU rules on free movement of capital; if it is challenged successfully, refunds may follow, so keep records.
Residence routes after the visa changes
Law 56/2023 removed property purchases from the Golden Visa in October 2023. According to the Lisbon law firm LVP Advogados, the routes that remain include a €500,000 subscription to a qualifying Portuguese investment fund, €500,000 for scientific research, €250,000 for cultural heritage and company investments that create jobs. The minimum stay is light, about seven days a year on average.
Many Americans instead use the D7 visa for people with passive income, such as pensions, rents or dividends, or the digital nomad visa for remote workers. Both require proof of stable income linked to the Portuguese minimum wage; confirm the current figure with the consulate or VFS before applying.
The bigger change is citizenship. Organic Law 1/2026, published on 18 May 2026, raised the residence period for naturalisation to ten years for nationals of countries outside the EU and the Portuguese-speaking community, up from five. Portuguese advisers read it as also changing when the clock starts; applications already pending continue under the old law. Anyone who moved on the expectation of a passport after five years should take advice.
Tax: Portugal, the US and the treaty
The old Non-Habitual Resident regime closed to new entrants in 2024. Its replacement, IFICI, offers a flat 20% rate on Portuguese employment or self-employment income from qualifying, mostly highly skilled roles for up to ten years, and generally exempts foreign income, though not foreign pensions, according to Uría Menéndez. It is narrower than NHR and does not suit most retirees.
For US citizens, any Portuguese relief sits on top of US worldwide taxation. Portuguese income tax on rental profit can usually be credited against US tax on Form 1116, but IMT and the annual IMI are not income taxes and cannot be credited, Greenback notes. The US-Portugal income tax treaty gives Portugal the primary right to tax income from Portuguese property, and a Portuguese bank account counts towards the FBAR reporting threshold.
The market
Portugal recorded the largest annual house price rise in the EU in the second quarter of 2026, 16.5% according to Eurostat. Idealista put the median asking price in Lisbon at €6,256 per square metre in September 2026, 4.4% higher than a year earlier, with Faro up 14.3%. Strong demand supports values; the new tax for non-residents and stretched local affordability are the counterweights, and how they balance over the next year is uncertain.
Dolce Vita handles sales and lettings across the UK from Mayfair, and helps clients buy abroad through partner agencies. If you are selling or letting a UK home to fund a move to Portugal, or would like an introduction to a partner agency there, we can help. Request a valuation; we acknowledge the same working day and return a written valuation within 24 to 48 hours.
Chris Dawson, Co-Founder
Sources: Andersen in Portugal, Decree-Law 97/2026, 27 May 2026; Greenback Tax Services, Portugal IMT for non-resident buyers, updated 13 October 2026; LVP Advogados, Portugal's Golden Visa after the 2023 reform, 30 April 2025; Organic Law 1/2026 (Diário da República, 18 May 2026), as summarised by Portuguese advisers; Uría Menéndez for the International Bar Association, Overview of Portugal's IFICI regime, 24 April 2025; Eurostat house price index Q2 2026 and Idealista asking prices September 2026, via Euronews, 1 October 2026; IRS, US-Portugal income tax treaty.