The Government will increase the IMT paid by non-residents when purchasing a home, but guarantees that "it is a fair measure that will bring more equity and better redistribute wealth”.
The new plan to promote housing supply includes a measure that will increase the Municipal Tax on Onerous Property Transfers (IMT) for non-residents purchasing homes. The Minister of Infrastructure and Housing assures, however, that he does not hold these investors responsible for the increase in property prices. Do we not want this investment? “We do, and we will continue. You will see, and I can assure you: Portugal will not stop attracting this investment. It is a fair measure that will bring more equity and better redistribute wealth, we believe, but it will not jeopardise the country’s attractiveness”, he said in an exclusive interview with ECO.
The increase in IMT for non-residents seems to have been discussed at the table with the left-wing party Bloco de Esquerda. Are you suggesting that non-residents are responsible for the increase in house prices in Portugal?
No, that is not what I am suggesting. The government has made this decision, but has not yet announced the increase, nor will I announce it now, but there will be an increase.
Why?
… but foreign residents are not included, Portuguese immigrants are not included, so it really is part of the investor fabric…
But what is the purpose of the measure? Is it to increase revenue?
It is to seek revenue, naturally. We need revenue for all of this. The Prime Minister had the opportunity to say that, in the coming weeks, he will present the fiscal policy plan that will balance the equation. We will not waver; this Government will continue to keep its accounts in order. Therefore, we have to be rigorous in what we do and, for that reason, we have to compensate for the measures.
But will the revenue be significant?
We believe so, but I’m not going to anticipate that yet. The government has only signalled the measure, it is grading it and, when the time is right, it will announce it.
I have to insist on the measure for two reasons. And it is probably not because of the budgetary dimension, because the INE [National Statistics Institute] figures tell us that non-residents account for 5% or 6% of transactions. Next, will you also increase the tax burden on golden visa investments?
No…
Because it makes sense, doesn’t it?
We have already said where we are going. Our tax package for housing is finalised and this is what we have presented. Regarding IMT, in the coming weeks, when the Prime Minister presents the country’s general tax package, the issue of IMT will also be clarified.
Which non-residents are you thinking of?
We are talking about those non-residents who invest in Portugal, do not pay taxes in Portugal, but are investing in a second home or a holiday home here.
Don’t we want that investment?
We do, and we will continue to do so. You will see, and I can assure you, that Portugal will not cease to attract that investment. It is a measure of justice that will bring more equity and better redistribute wealth, we believe so, but it will not jeopardise the country’s attractiveness.
Have you made comparisons with other countries?
This measure will be presented alongside other fiscal measures which, in some way, provide the macroeconomic scenario in fiscal terms that will make it clear to the Portuguese people that this Government is one of sound accounts.
So, will this measure also help to balance the accounts?
It will, within its scope, alongside other measures.
Doesn’t it sound like a popular measure to compensate for other measures that may not be so popular with the middle class, lower middle class, and less privileged?
I don’t think so… it’s not even a question of whether they are popular or not. The measures are fair for the Portuguese people, fair for landlords, fair for tenants and necessary for the market. I think the government has been very transparent, ambitious and has taken risks, but it has done so on behalf of the Portuguese people and our families.
Many of the measures in this housing package will go through Parliament. Who will approve these measures?
You’ve touched on a sore point. First of all, the simplification regime is currently a request for legislative authorisation, which has a draft bill attached, the one I’m talking to you about, but it’s only a draft bill. The Assembly may or may not grant legislative authorisation. If it does, the Government will continue with this process and we will not depend on anything else.
And if it doesn’t?
The process has to take place in the Assembly. And there, as I said, and the Government is clear about this, the Government today does not have a preferential relationship with any of the parties in the Assembly of the Republic. It has been in dialogue with all of them. Some measures have been passed with the support of some, other measures have been passed with the support of others.
That is why I asked you earlier whether the measure on Non-Habitual Residents had been decided upon precisely to ensure comfort in Parliament, particularly from the PS, for this broader package.
The Government does not do these things. It is up to the Government to present the Portuguese people with credible solutions to solve their problems. If Parliament then denies the Government this reformist impetus, the responsibility will lie with each member of the Assembly of the Republic who will prevent or not prevent this reform.
If the legislative authorisation is approved, will this licensing package go ahead in the first quarter of 2026?
We believe so.