Municipal Property Tax (IMI)

What Is It?

IMI (Imposto Municipal sobre Imóveis) is the annual property tax paid by all property owners in Portugal.

The tax is calculated based on the property’s official taxable value — VPT (Valor Patrimonial Tributário), as registered with the Portuguese Tax Authority (Finanças) on 31 December of the previous year.

What Is It For / Why Is It Important?

Municipal Revenue
IMI is collected by the local municipality (Câmara Municipal) where the property is located and helps fund local public services such as street maintenance, sanitation, lighting, and infrastructure.

Ongoing Obligation
It is a recurring tax. As long as you own the property, IMI must be paid annually.

How Much Does It Cost?

The amount payable results from:

VPT × IMI rate set by the municipality

Urban Properties (Prédios Urbanos)
Municipal rates typically range between 0.3% and 0.45%, depending on the local council.

Rural Properties (Prédios Rústicos)
Fixed rate of 0.8%.

Family IMI Discount (IMI Familiar)
Municipalities may grant reductions for primary residences (Habitação Própria e Permanente — HPP) with dependent children:

• €20 discount — 1 child

• €40 discount — 2 children

• €100 discount — 3 or more children

When Is It Paid?

IMI is paid one year in arrears (for example, in 2026 you pay IMI relating to 2025).

Payment schedule depends on the amount due:

• May — full payment (if under €100) or first instalment

• August — second instalment (if total exceeds €500)

• November — final instalment

Exemptions

Temporary Exemption (3 Years)
Available when purchasing a property as a Primary Residence (HPP), provided:

• VPT does not exceed €125,000

• Household income does not exceed €153,300

Permanent Exemption
For low-income households:

• Annual gross income up to €15,450

• Combined VPT of all owned properties up to €67,260

Practical Example

If a property has a VPT of €150,000 and the municipal IMI rate is 0.3%:

➡ Annual IMI payable: €450.