Succession Law
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May 30, 2025IMI, or Imposto Municipal sobre Imóveis, is an annual tax imposed on property owners in Portugal. It is calculated based on the Tax Asset Value (VPT) of the property — a value assessed by the Portuguese Tax Authority — not the market value.
Who Needs to Pay IMI?
All individuals or entities that own real estate in Portugal — including residential homes, garages, and land — are required to pay IMI, unless they qualify for specific legal exemptions.
How is IMI Calculated?
IMI is determined by applying a tax rate to the property’s VPT:
- Urban properties: 0.3% to 0.45%
- Rural properties: Fixed rate of 0.8%
The exact rate is set by each municipality within the established ranges.
Payment Schedule
IMI is paid annually, with the number of installments based on the total amount owed:
- Up to €100: Single payment in May
- €101 to €500: Two installments – May and November
- Over €500: Three installments – May, August, and November
Payments can be made via the Portuguese Tax Portal, at ATMs (Multibanco), post offices, or directly through banks.
Available Exemptions & Reductions
Certain property owners may benefit from full or partial IMI exemptions, depending on specific conditions:
- Automatic Exemption
For households earning up to €16,398.17 annually and owning property with a VPT under €71,296.40 (2024 rates).
(For 2026, thresholds will increase to €16,824.50 and €73,150.00 respectively). - Temporary Exemption
Applies to owners who acquire a primary residence with a VPT up to €125,000, and whose household income does not exceed €153,300.
Valid for 3 years, extendable to 5 years, subject to municipal approval. - Other Exemptions
May apply to:- Rehabilitated properties
- Rental contracts signed before 1990
- Properties included in the Affordable Rental Program (PAA) — provided they are leased within 6 months of acquisition or renovation. These are exempt for 3 years, renewable for an additional 5.
Need Help?
To determine if you qualify for an exemption or to get assistance with your IMI obligations, our team at Edex Group Portugal is here to help.
Contact us today for expert guidance tailored to your property situation.
