Lisbon, Sept. 25, 2025 (Lusa) - Portugal's Prime Minister announced on Thursday that the Municipal Property Transfer Tax (IMT) will be increased for house purchases by citizens not resident in Portugal, excluding emigrants.

Luís Montenegro was speaking in the middle of the Council of Ministers meeting, which took place at his official residence in São Bento, in a statement without the right to questions.

The government approved a series of measures that it believes will tackle the housing crisis, some of which had already been put forward on Wednesday.

The Prime Minister announced the exemption from paying the additional Municipal Property Tax (IMI) in force in the case of homes put up for rent up to €2,300.

The government approved, among other measures, an increase in IRS deductions for rent to €900 next year and then to €1,000, a reduction in the tax from 25% to 10  for landlords who pay moderate rents, a VAT rate of 6 % for the construction of housing with a sale value of around €648,000 and also a VAT rate of 6% for rentals of up to €2,300.

More measures have also been promised for December, with the government saying that it is working with banks to find new products that make access to housing loans and construction capital more flexible.

SMA/ADB // ADB.

Lusa