IMI is the annual property tax paid by the owner of property in Portugal. It is calculated on the tax value (VPT), at 0.3%–0.45% for urban property and 0.8% for rural property. Each municipality sets its specific rate within that band. Payment is due once a year (or in instalments depending on amount). Non-resident owners pay the same IMI as residents.
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What is IMI?
IMI — Imposto Municipal sobre Imóveis — is the annual municipal property tax in Portugal. It is the equivalent of council tax (UK) or property tax (US). IMI is paid annually by the registered owner of the property as at 31 December of the previous year.
IMI is collected by Finanças but the revenue goes to the municipality where the property is located.
Current IMI rates (2026)
| Property type | IMI rate |
|---|---|
| Urban property (prédio urbano) | 0.3% – 0.45% |
| Rural property (prédio rústico) | 0.8% flat |
| Property in a tax-haven jurisdiction owner | 7.5% (penalty rate) |
Each municipality (município) sets its specific urban IMI rate within the 0.3%–0.45% band each year. For example, Lisbon and Porto typically apply lower rates; smaller municipalities sometimes apply the top of the band.
How IMI is calculated in Portugal
IMI is calculated on the VPT (valor patrimonial tributário), which is the tax value of the property held by Finanças. The VPT is normally lower than the market value — sometimes substantially so, particularly for older properties that have not been recently revalued.
IMI = VPT × municipality IMI rate
Example
A Lisbon apartment with VPT of EUR 250,000 in a municipality applying the 0.35% rate:
IMI = 250,000 × 0.35% = EUR 875 per year
Why is VPT often lower than market value?
VPT is calculated by formula based on construction cost, age, location coefficients, and quality coefficients. It is updated periodically but typically lags market value. For older urban properties — particularly in Lisbon, Porto, and Cascais where market values have risen sharply — VPT can be a fraction of market value, and IMI is correspondingly low.
New properties have VPT closer to construction cost. Renovation of an old property typically triggers VPT revaluation, increasing IMI going forward.
Confirm the IMI liability for a property before you buy.
Request ConsultationAIMI — additional IMI on high-value owners
AIMI (Adicional ao IMI) is an additional annual tax on the aggregate VPT of urban residential property owned by a single owner above a threshold:
| Total VPT owned (urban residential) | AIMI rate |
|---|---|
| Individuals, up to EUR 600,000 | 0% (allowance) |
| Individuals, EUR 600,000 – EUR 1,000,000 | 0.7% |
| Individuals, EUR 1,000,000 – EUR 2,000,000 | 1.0% |
| Individuals, above EUR 2,000,000 | 1.5% |
| Married / civil partnership couples | Allowance doubles to EUR 1,200,000 |
| Companies | 0.4% (no allowance), 7.5% if tax-haven resident |
AIMI applies to the total aggregate VPT of all qualifying property owned, not on a per-property basis. Non-resident individual owners are subject to AIMI on Portuguese property at the same rates as residents.
When is IMI paid in Portugal?
IMI is billed in the year following the tax year. The payment schedule depends on the amount due:
- IMI up to EUR 100 — single payment in May.
- IMI EUR 100 – EUR 500 — two instalments (May and November).
- IMI above EUR 500 — three instalments (May, August, November).
Payment is made via Finanças payment guide, at a bank or via the Portal das Finanças online. Non-payment results in interest, surcharges, and ultimately an enforcement procedure that can attach the property.
IMI exemptions and reductions
- Permanent residence exemption — primary residence properties below a VPT threshold (~EUR 125,000) for owners below a household income threshold are exempt for up to 3 years.
- Urban regeneration areas (ARU) — properties in designated rehabilitation areas may qualify for 3–5 year IMI exemptions after rehabilitation works.
- Properties used by the disabled or for specific welfare purposes — specific exemptions apply.
- Properties classified as historic or in conservation areas — may attract reductions.
- Properties available for long-term rental — some municipalities offer rate reductions for long-term residential lettings (counter to AL).
For non-resident owners — including most foreign buyers of holiday homes — IMI applies in full with no specific reduction for non-resident status.
Confirm IMI and AIMI exposure for a specific Portuguese property.
Request Consultation