IMI in Portugal: Key Facts, Costs and Tips for Property Owners

Author:

Isadora Ussene | Liaison Officer

At this time of year, real estate owners know that taxes related to their properties are approaching.

Complying with the tax calendar is crucial to avoid penalties and optimise your fiscal situation.

With that in mind, we have developed this practical guide to assist property owners in Portugal, particularly those who struggle with the Portuguese language and bureaucracy, in gaining a clearer understanding of IMI, or Municipal Property Tax. This ensures that foreign real estate owners can easily access and comprehend this information.

To make things clear, we have structured this insight around the most relevant questions that many people have about IMI in Portugal, ensuring quick and easy access to the information:

IMI (Imposto Municipal sobre Imóveis) is a municipal property tax in Portugal, levied annually on real estate properties. The tax is based on the Taxable Asset Value (Valor Patrimonial Tributário - VPT) assigned by the Portuguese Tax Authority (Autoridade Tributária e Aduaneira - AT), not on the property's purchase price.

• The owner of a property as of 31 December of the previous year is responsible for paying IMI for that tax year.
• Even if the property is sold during the year, the IMI liability remains with the owner on record at the end of the previous year.

IMI charges begin at the end of April, with payments due by 31 May. For many real estate owners, this is their only IMI payment of the year. For others, it may be paid in two or three instalments.

Important note: Due to ongoing disruptions in access to the Tax Authority portal following the blackout in the Iberian Peninsula on 28 April, the Portuguese Government has decided to extend the deadline from 31 May to 30 June.

31 May

For IMI payments up to €100, the full amount is due by 31 May.

For IMI amounts exceeding €100, 31 May is the deadline for the first instalment.

Those who opt to pay the IMI tax in a single instalment, regardless of the total amount, must also complete payment by 31 May.

If you do not receive the payment notice by then, you should download it from the Finance Portal as soon as possible. If you need help managing your Finance Portal, or if you find Portuguese challenging and struggle to manage it:

Get in touch with us - we can manage your Portuguese Finance Portal for you.

Individuals whose IMI tax exceeds €500 have the option to pay in three instalments. For those who choose this payment model, the second instalment is due on 31 August.

In addition to the advantages already mentioned, hiring a Property Management service offers several other benefits, making property management more efficient and profitable:

This is the deadline for the final IMI instalment payment. It applies to those who opt for two instalments (for IMI amounts between €100 and €500) as well as those who opt for three instalments (for IMI amounts exceeding €500), provided that the instalment payment option has been selected.

To pay IMI, the details provided in the letter sent by the Tax Authority (AT) are required. In the absence of this letter, payment details can be checked on the Finance Portal. Access to the Finance Portal requires authentication through one of the following methods:

• Tax Identification Number (NIF) and 
• Portal access password. 

Important: To access the Finance Portal, you need to complete a pre-registration. 

Don't have a registration in the Portuguese Finance Portal?

Contact us – we can handle it for you!

The other methods are only available for those with Portuguese citizenship status; they are: 

• Digital Mobile Key (CMD).
• Citizen Card.

IMI can be paid through various methods:

• Multibanco (ATM): Use the reference provided in the tax notification under the option “pagamentos ao estado” (payment must be made from a Portuguese bank account). 
• Online Banking: Pay through a Portuguese bank using the reference number, in the option” pagamentos ao estado”.
• Tax Office (Finanças): In-person payment at an AT branch.
• Direct Debit: Set up automatic payments via the AT website (this must be requested with some anticipation and is recommended to be made from a Portuguese bank account, as the Finance Authority does not accept payments from all foreign bank accounts). 

Some property owners may be eligible for IMI exemption, which can be either permanent or temporary. The exemption depends on the household income and the Taxable Asset Value (VPT) of the property.

The permanent IMI exemption is automatic and granted annually by the Tax Authority. The requirements are:

• Household's gross annual income must not exceed 2.3 times the yearly amount of the Social Support Index (IAS), which is €16,824.50 (€522.50 × 14 months × 2.3) in 2025.
• Property must be the primary residence, and the VPT must be €67,260.20 or lower.

The temporary IMI exemption lasts for a maximum of three years and is not available to families with outstanding debts to the State. The requirements are:

• The property must have a VPT of no more than €125,000 and must be the registered fiscal residence.
• The household's annual income must not exceed €153,000.

AIMI (Adicional ao IMI) is an additional property tax for high-value properties. It applies to:

• Individuals who own properties with a combined VPT exceeding €600,000 (the exemption applies for each taxpayer).
• Companies that own real estate (no exemption threshold applies).

AIMI Tax Rates:

• 0.7% for VPT above €600,000 and up to €1 million (individuals).
• 1% for VPT above €1 million.
• 1.5% for VPT above €2 million.
• 0.4% for corporate entities.

When Is The AIMI Tax Paid?

The AIMI tax must be paid annually in September. By the end of August, the tax authorities send the payment document, detailing the settlement, the properties, the ownership shares, the taxable value, and the amount due.

• The IMI tax rate is determined by each municipality, ranging from 0.3% to 0.45% for urban properties.
• The VPT is calculated by the AT based on property characteristics, including location, size, and type of use.

We hope this overview clarifies what the IMI tax involves and the key deadlines to meet.

If you need help with your IMI, get in touch with us – we're here to assist you.