T02E - IMI - Real Estate Tax

Note: These guidelines are intended only as a summary.  Tax laws and regulations change frequently and sometimes unexpectedly.  It is strongly recommended that you seek professional advice.

IMI is a rate that is levied on the Taxable Patrimonial Value (VPT), which is the value of the property registered with the Tax Authority.

The rate to be applied depends on a decision by the municipality and may vary between 0.3% and 0.45% for urban buildings (with exceptions, which can raise the rate to 0.5%). Rustic buildings pay 0.8%. So, knowing what rate is practiced in the municipality where your house is located, just multiply this rate by the VPT.

Even if your municipality keeps the same IMI rate, many homeowners will pay more IMI in 2026 because: 

• VPT increases from the inflation adjustment (average of 4.5% increase)
• VPT increases from the construction cost update

Construction value

The Municipal Property Tax Code establishes that one of the objective elements included in the urban buildings is the average construction value per square meter, to be fixed annually.

This valor base is one of the most influential numbers in the VPT formula. When it increases, VPT tends to increase, and therefore IMI may increase (unless your municipality lowers the IMI rate).

For 2025, the valor base dos prédios edificados - used in the VPT formula - was: 665 € / m²

This value comes from:

• Valor médio de construção: 532 € por m²
• Acrescido de 25% (as required by the CIMI) 532 € × 1.25 = 665 €

According to the Portaria n.º 471/2025/1, which sets the value for 2026, the average construction value rises to 570 €, and the law (art. 39.º do CIMI) requires adding 25% to obtain the valor base dos prédios edificados (to account for the value of the land where the building sits).

The base value (for the calculation of VPT): 570 € × 1.25 = 712,50 €

VPT – Valor Patrimonial Tributário

The VPT formula uses coefficients for:

• Location
• Quality and comfort
• Allocation
• Area
• Age of the property … and the base construction value, which for 2026 is 570 € per m².

The Taxable Patrimonial Value (VPT) is available in the urban land registry, which can be consulted on the Finanças Portal. Because many coefficients depend on municipal zoning and technical tables, only the Tax Authority can calculate the official VPT. 

How to know the VPT of your property:

Go to Portal das Finanças

Log in with your NIF + password/Chave Móvel Digital

• In the top menu, choose “Património”
• Select “Imóveis”
• You will see a list of all properties registered under your NIF
• Click the property you want -> the VPT appears on the property details page

Or

• Log in to Portal das Finanças
• Search for “Caderneta Predial” in the search bar
• Choose “Obter Caderneta Predial”
• Select the property
• Download the PDF
• The VPT is shown on the first page, usually under “Valor Patrimonial Tributário (VPT)”

Age Coefficients
The Age Coefficients are applied according to the age of the property, that is, it depends on the number of years that have elapsed since the date of the use license or the completion of the building. The coefficient decreases as the age of the property advances. As the Tax Office does not update this factor automatically, the coefficient considered by the Tax Authorities is not the current one, but the year of the last assessment requested by the taxpayer. If you have never asked for a new appraisal, you are paying IMI as if your house were new, even if it is, for example, 20 years old. That's 20% more tax you can save if you use a simulator (source Deco: IMI Simulator | Pay Less IMI | DECO PROtest).

Sometimes it can be beneficial to ask for a new appraisal, but it is always good to check with your accountant before you do so.

IMI TAX (Imposto Municipal sobre Imóveis)

The local tax on real estate (IMI) is a municipal tax levied on the net worth of property situated within the territory of each municipality. Immovable property is classified as rural, urban or mixed.

LEVY OF TAX

The taxable person is the owner, the beneficiary or the party having the use or the benefit of the property on the 31st of December of the year to which the tax relates. 

In 2026, you will pay the IMI for the properties you owned on 31^st of December 2025.

EXEMPTIONS

CIMI provides for two types of exemption from IMI. The automatic exemption, intended for low-income households. And the temporary exemption, applied to new properties, being granted for a maximum period of three years. The low-income exemption is being assessed every year.

Regardless of the type of IMI exemption in question, its attribution depends on the Tax Asset Value (VPT) of the property and/or the household income.

Low-income automatic exemption
The IMI Code provides for an automatic tax exemption for taxpayers whose annual gross household income does not exceed € 17 295,59 (2.3 times the annual value of 14 x the Social Support Index – IAS*) and the overall tax asset value of all rustic and urban buildings belonging to the household does not exceed € 75 198,20 VPT Valor Patrimonial Tributário (10 x the annual value of 14 IAS*).

This exemption is granted automatically by the Tax and Customs Authority, based on the information available to it.

This tax benefit is automatic but is revised annually according to declared income. You lose the exemption when income exceeds 2.3 × 14 IAS.

* The IAS value equals € 537,13 in 2025 to be charged in 2026.

Exemption for beneficiaries of undivided inheritances
With the Law No. 75-B/2020 of 31^st of December, changes to the permanent exemption were introduced in the case of properties belonging to undivided inheritances of low-income households. Please contact your accountant for more information.

“Isenção para habitação própria e permanente” for 3 years
If the property has VPT (Valor Patrimonial Tributário) not exceeding €125,000, and the owner has a household income of less than €153,300 in the previous year (gross income, before tax deduction), they are entitled to an exemption from IMI, provided that it is for their own permanent residence or that of their household. “Isenção para habitação própria e permanente” is for 3 years

Temporary exemption
The IMI exemption is applicable for three years to buildings or parts of urban residential buildings built, extended, improved or acquired for the taxpayer's own permanent residence or that of their household, if the property has aVPT (Valor Patrimonial Tributário) not exceeding €125,000.

Allocation
The allocation of the property as own and permanent housing should be done within a period of 6 months, from the date of acquisition or completion of construction. This exemption must be requested within 60 days after the housing has been allocated.

Also exempted from local real estate tax are:

• Properties classified as national monuments or classified as of public or municipal interest

• Buildings or parts of buildings dedicated to shops with history, recognised by the municipality as establishments of historical and cultural interest

• Urban buildings, or autonomous fractions, completed more than 30 years ago or located in urban rehabilitation areas

• Rustic buildings intended for forest exploitation that are adjacent to rustic buildings subject to a forest management plan.

• Urban properties intended for the production of energy from renewable sources. In this case, the IMI exemption is partial (50%)

• Energy efficient properties (up to 25%).

Programa de Apoio ao Arrendamento
The Mais Habitação law includes an IMI exemption for properties built, expanded, refurbished, or acquired under the Rental Support Program (PAA), when allocated to residential letting and will only apply when the letting is for the tenant's permanent dwelling. Please check with your tax advisor if you are eligible.

IMI exemption can be requested on the Finance Portal (log in/Iniciar Sessão) by typing on the search box Submeter Pedido Insenção IMI and by choosing the option according to your situation on the drop box.

TAXABLE AMOUNT

The taxable amount of the property is represented by its net assets value as determined under the terms of the Evaluation Code.  Meanwhile, the taxable amount is the same as the rateable value (“valor tributável”)

Rates
The Local Real Estate Tax rates are as follows:

*This rate may, in the specific circumstances of paragraph 18 of Article 112 of the IMI Code, go up to 0.5%

It is the responsibility of the municipality to define each year the applicable rate. 

Properties that are owned by Offshore Property Companies (with domicile in “black-listed + 1 revoked” territories) are assessed at the flat rate of 7.5%, regardless of the type of property.

On the following website you can check the rates here per year/per municipality.

IMI Familiar
There are municipalities that grant a reduction in IMI to families with children.

To be entitled to the discount, the family must cumulatively meet the following criteria:

• the dependents must be under 25 years of age and not earn income

• the family must be the exclusive owner of the property

• the property is used for own permanent housing

• the property must be identified as the family’s tax residence with the address registered at Finanças for tax and notification purposes.

The discount depends on the number of children. You will find if your municipality grants this on the Finanças website, after selecting the year + district and on the next page behind municipality, you will find it in the last column: “Dedução fixa por agregado” + Info. The rates may change every year. It is not necessary to make any application. The discount is automatically applied by the Finanças when the household meets the required criteria, based on the information held by Finanças, like IRS declarations etc.

For the purposes of granting the discount, the composition of the household is that which occurs on the last day of the preceding year to which the tax relates. I.e. for the IMI of 2026, the composition of the family as of 31st of December 2025is taken into account.

Assessment & Payment
The tax is assessed each year for each municipality by the Central Services of the Directorate General for Taxation, based on the values and of the registered owners on 31st of December of the year to which the tax relates. 

The deadlines for making IMI payments on Portugal mainland normally are:

• If the amount to be paid is up to 100 euros, it must be paid once, by the 1^st of June 2026

• Two instalments (more than 100 euros and equal to or less than 500 euros): by the 1^st of June and 30^th of November 2026

• Three instalments (more than 500 euros): by the 1^st of June, 31^st of August and 30^th of November 2026.

An advice for payment, specifying all relevant information concerning the property in question, as well as its taxable value and tax payable will be sent to each taxpayer in April and can also be found on the Finanças website. 

If you prefer to pay the full amount at once, even if the amount exceeds 100 euros, it is possible to make the full payment in May (June for 2025).

To do this, just pay attention to the first notice. There are two references available:

• On the left side of the notification, you will find the reference for payment of the first instalment. If you want to pay for IMI in a fractional way, that is the one you should use

• At the end of the page, on the right side, an alternative reference appears which should be used to pay for IMI at once. Please note, in this case the payment period should be until 31^st of May (June for 2025).

After receiving notification from the Tax and Customs Authority, you can pay IMI through the MultiBanco (ATM) or through home banking, choosing the option "Pagamentos ao Estado".

You can also go to the Finanças office and pay it there.

When you did not receive your notification, you can find the amount on the Finanças website (log in first): Cidadãos > Os Seus Serviços > Consultar > Imóveis > Notas Cobrança

It is also possible to set up a direct debit (see separate afpop Fact sheet). To do this you must make the application through the Finance Portal. This option can be useful to avoid fines and extra costs if you miss the deadlines.

What happens if the IMI tax is not paid?
If the IMI payment is made after the legal deadline, the owner is subject to penalties. In this case, a debt certificate is issued, and tax enforcement proceedings are initiated. As part of this legal action, the owner is notified to voluntarily pay the missing tax within 30 days. In addition, you’ll be charged for let payment interest and procedural fees. If voluntary payment of the tax debt is not made, the property may be sold through court if it is not intended for permanent housing or is of high value.

AIMI 
First introduced in 2017, the Adicional Imposto Municipal Sobre Imóveis (AIMI) affects owners with a share in Portuguese property worth over €600,000.00. If you and your partner jointly own the property, you only pay AIMI if the value is over 1.2 million euros. 

Members, who own properties with a rateable value over €600,000.00, or their property is owned by a company, will receive an additional IMI bill. 

AIMI is a tax added to your regular IMI. This tax substituted the former annual Imposto de Selo (Stamp tax) levied on properties over one million euros of rateable value - VPT. This tax is levied on habitational properties owned by individuals or companies.

Please note that the amounts taxed are on the total number of properties owned by the same person. This means that if you have two properties where one has a VPT of €200,000.00€ and the other €500,000.00 you will pay this additional tax on €100,000.00, as both property values combined exceed €600,000.00€. 

This additional tax is levied on amounts over €600,000.00 as the IMI tax is payable on amounts under that limit.

For individuals, the following AIMI taxes are applied:

• Over €600,000.00 to €1,000,000.00€: 0.7%

• Over €1,000,000.00: 1% 

• Over €2,000,000.00: 1.5%

Properties owned by companies are taxed at 0.4% on any VPT value. When the company is based in countries where the fiscal system is considered favourable (Tax Havens black-listed + 1 revoked) this additional tax is charged at 7.5%.

Individuals will see their properties taxed at 0.7% when the VPT of all the properties owned by them reaches the amount of €600,000.00. 

In any of the cases above, when the VPT reaches one million euros, the additional tax becomes a flat rate of 1%. For example, a privately owned property with a VPT of €1,200,000.00 will be charged at 0.7% for the difference between €600,000.00 and €1,000,000.00 and at 1% for the remaining €200,000.00.

For couples with jointly owned property:

• Up to €1,200,000.00: 0%

• Over €1,200,000.00: 0.7%

• Over €2,000,000.00: 1%

• Over €4,000,000.00: 1.5%

Married couples or couples in a civil partnership (União de Facto) may opt for joint taxation under AIMI, by submitting the Declaração de Opção dos Sujeitos Passivos Casados or in a União de Facto, adding in this case the taxable equity values ​​of the buildings of which each of them is holder, with a single settlement of AIMI.

When this option is exercised, the limit from which this tax is charged is multiplied by two, that is, the AIMI is levied on amounts greater than €1.200.000,00 Declaração de Opção dos Sujeitos Passivos Casados or the União de Facto must be delivered from 1st of April to 31st of May, exclusively through the Finanças Portal.

If this declaration is not submitted within the established period, the AIMI is levied to each of the spouses, on the sum of the values ​​of the properties that were recorded on 1st of January of the year to which the AIMI relates in the respective ownership.

The AIMI will be assessed every year in June and the payment must be made by the 30th of September.