IMI property tax in Portugal in 2026: how much, who pays and how to pay less

IMI (Imposto Municipal sobre Imóveis) is the annual property tax every owner of a home, plot or other building in Portugal pays. The tax authority collects it, but the money goes to the municipality where the property is, and the municipality decides, within the limits of the law, the rate and the discounts. Two homes with the same tax value can therefore pay different IMI in different municipalities.

This guide covers the rules in force in October 2026.

Summary

Topic	Rule
Who pays	The owner on 31 December of the year in question
Tax base	Tax value of the property (valor patrimonial tributário, VPT), shown on the land register certificate (caderneta predial)
Rate for homes	0.3% to 0.45%, set by each municipality
Rate for rural property	0.8%
Payment	May; or May and November; or May, August and November, depending on the amount
Exemption when buying a main home	3 years, with VPT up to €125,000 and household income up to €153,300
Family discount	€30, €70 or €140, by number of dependants, where the municipality opts in
Additional IMI (AIMI)	For individuals with more than €600,000 of VPT in homes and building plots

Who pays IMI

IMI is owed by whoever is the owner on 31 December of the year in question. If there is a life interest (usufruto), the holder of that interest pays; with a surface right, the holder of the surface right pays. Each year’s tax is collected the following year: IMI for 2026 is paid in 2027.

This matters when a home changes hands. If you sell in October 2026, you are no longer the owner on 31 December, so the 2026 IMI falls on the buyer. But during 2026 you still pay the instalments of the 2025 IMI, which is yours. Any adjustment between buyer and seller is a private agreement and can be written into the promissory contract.

How it is calculated

The sum is simple: IMI = VPT × municipal rate, less any deductions you are entitled to.

The tax value (VPT)

The VPT is the value the tax authority assigns to the property. It is on the caderneta predial, which owners can view and print on the Tax Portal (Portal das Finanças). For homes assessed under the current rules, the formula is:

VPT = Vc × A × Ca × Cl × Cq × Cv

• Vc, base construction value. Set every year. For 2026 assessments, Ordinance 471/2025/1 set the average construction value at €570 per m², giving a Vc of €712.50 per m² (€665 in 2025).
• A, area. Based on the gross private area plus ancillary areas such as garages and storage rooms.
• Ca, use coefficient. Housing, retail, offices.
• Cl, location coefficient. Varies by zone within each municipality, and drives most of the difference between a central and a suburban home.
• Cq, quality and comfort coefficient. Goes up with features such as a pool, a lift or a garage and down when some basic facilities are missing.
• Cv, age coefficient. Falls as the building gets older, counted from the occupancy licence.

The VPT is usually well below the market price, but it can be close to it for homes assessed recently in expensive areas.

The rate

Type of property	Annual rate
Urban property (homes, shops, offices)	0.3% to 0.45%, set by the municipal assembly
Rural property	0.8%
Owners resident in a listed tax haven	7.5%

Each year’s rate is approved by the municipality and notified to the tax authority by 31 December. If it is not notified in time, the minimum rate applies. The rates for every municipality are published on the Tax Portal.

Municipalities can also:

• cut the rate by up to 20% for let properties, in one area or the whole municipality;
• raise or lower the rate by up to 30% in urban regeneration areas or areas fighting depopulation;
• raise the rate by up to 30% for run-down buildings.

Worked example

Illustrative figures: a home with a VPT of €200,000 in a municipality charging 0.35%.

	Amount
IMI before deductions (€200,000 × 0.35%)	€700
Family discount for two dependants, if the municipality opts in	minus €70
IMI to pay	€630
Instalments	3 (May, August and November), as it exceeds €500

When it is paid

IMI amount	Instalments
Up to €100	One, in May
Over €100 and up to €500	Two, in May and November
Over €500	Three, in May, August and November

The payment notice is issued by the end of the month before each payment: in April for May, in July for August and in October for November. If it does not arrive, you can ask for a copy. The notice for the first instalment also carries a reference to pay the full amount at once, by the end of May.

If you miss an instalment, the remaining ones become due immediately. Paying late means interest and can lead to a fine.

Exemptions

Main home

If you buy, build or extend a home to live in, you can be exempt from IMI for 3 years when three conditions are met:

1. the VPT does not exceed €125,000;
2. the household’s gross income in the previous year does not exceed €153,300;
3. the home becomes your permanent residence, with your tax address there.

The municipal assembly can extend the exemption by 2 more years. On a purchase, the tax authority grants it from the data it already holds. For construction or extensions, you must apply to the tax office within 60 days after the 6 month deadline to move in. Each person or household can only use this exemption twice.

Low income

There is a permanent exemption for low income households, under article 11-A of the Property Tax Code. It applies when:

• the household’s gross income does not exceed 2.3 times 14 times the IAS (the social support index);
• the combined VPT of all the household’s properties does not exceed 10 times 14 times the IAS.

The IAS is updated every year, and the limits with it. The exemption is granted automatically, but it is lost for that year if the income tax or property tax returns are filed late. It does not apply to non-residents.

Energy efficiency

Municipalities can cut IMI by up to 25% for 5 years for buildings with an energy certificate of class A or higher, buildings that move up at least two classes after works, or buildings that reuse treated wastewater or rainwater. It only exists where the municipality has approved it, and you must apply to the tax office within 60 days.

Family discount

Where the municipality opts in, a main home owned by a family with dependants gets a fixed deduction:

Dependants	Deduction
1	€30
2	€70
3 or more	€140

The household on 31 December of the previous year counts. There is nothing to apply for: the tax authority applies it automatically from your tax address and household details.

Higher rates for empty and derelict homes

Buildings empty for more than a year and derelict buildings pay three times the rate. In areas under housing pressure (zonas de pressão urbanística), designated by municipalities, the increase is steeper: the rate is multiplied by ten and rises a further 20% each following year, up to twenty times the rate. This also applies to building plots for housing in those areas, and the municipal assembly can raise the cap in some cases, for example when the owner is a company.

How to pay less IMI

1. Check your exemptions and deductions

Look at the payment notice to see whether the main home exemption or the family discount has been applied. If not, and you qualify, contact the tax office. Make sure your tax address is the home you live in.

2. Check the details on the caderneta predial

Wrong areas, the wrong use or quality features the home does not have all push the VPT up. Owners can file a claim at any time against any error in the property register, such as areas, descriptions or exemptions not recorded.

3. Ask for a revaluation, carefully

Owners can also claim that the VPT is out of date. The usual argument is the age coefficient:

Age of the building	Coefficient
Under 2 years	1.00
2 to 8 years	0.90
9 to 15 years	0.85
16 to 25 years	0.80
26 to 40 years	0.75
41 to 50 years	0.65
51 to 60 years	0.55
Over 60 years	0.40

There are two catches. A VPT set by an assessment can only be changed on these grounds in a new assessment after 3 years, and the correction only affects IMI for the year of the request. More importantly, the new assessment uses 2026 values: the Vc rose to €712.50 per m², and location coefficients may also have changed. For a home assessed several years ago, the higher Vc can cancel out the lower age coefficient and the VPT may go up. The Tax Portal has a property value simulator: use it before you apply.

4. Use the discount for let homes

If you let the property, check whether your municipality has approved the discount of up to 20% for let properties and whether it covers the area where the home is. Registering the lease with the tax authority is, in any case, a legal duty of the landlord. Our guide to renting out your property covers the landlord’s obligations.

Additional IMI (AIMI)

AIMI is a separate tax, paid in September. For individuals, it applies to the combined VPT of homes and building plots on 1 January, on the part above €600,000 per person. Shops, offices and rural property do not count.

VPT above the allowance	Rate
Up to 1 million euros	0.7%
Between 1 and 2 million euros	1%
Above 2 million euros	1.5%

Married couples and civil partners can opt for joint taxation, which doubles the bands. Companies pay 0.4%, with no allowance.

Before you buy

IMI is a cost every year and belongs in your purchase budget. Ask for the property’s caderneta predial before signing the promissory contract, check the VPT and the municipal rate, and see whether you qualify for the 3 year exemption. Our guide to the cost of buying property puts IMI together with the other purchase taxes: IMT, stamp duty, the deed and registration.

How we help

When we help you buy, we request and review the caderneta predial of every property you are interested in, so you know the VPT and the IMI you will pay before you decide. See the properties we have for sale. This guide is general information, not tax advice: for your own case, always confirm with a certified accountant (contabilista certificado) or the tax office.