Property Tax

June 19, 2023
Tax basis

Property Tax (“IMI – Imposto Municipal sobre Imóveis”) is computed on the tax registration value of urban and rural properties located in Portuguese territory. It is due by the owner, the usufructuary, or the holder of the surface right of a property with reference to 31 December of the year that it concerns.

The tax registration value is determined by means of valuation, based on the type of property.

PropertyRates (%)
Urban property0.3 to 0.45
Rural property0.8
Property owned by residents in offshores (except individuals)7.5
Payment date

• Amounts up to € 250 – 1 instalment in April
• Amounts from € 250 to € 500 inclusive – 2 instalments in April and November
• Amounts exceeding € 500 – 3 instalments in April, July, and November

Exemptions / Reduced rates
Urban properties considered a permanent place of residence:

The exemption applies for a three-year period, in the case of urban properties with a Tax Registration Value of up to € 125,000, held by individuals who obtained a taxable income in the year prior to the acquisition, of up to € 153,300.

Safeguard regime for urban real estate:

The IMI due on urban real estate that is considered as the permanent abode shall not exceed, in each year, the previous year’s IMI due, added by the highest of the following amounts: € 75 or 1/3 of the difference between the IMI that resulted from the new TRV appraisal and the IMI that would result from the previous TRV appraisal.

This regime will not apply when a change of the taxable person occurs in the year to which IMI respects, except for free transmissions for the benefit of the spouse, ascendants, and descendants.

Additionally, the IMI increase is not applicable to taxpayers that comprise the legal requirements for the IMI exemption and with more than 65 years old.

Permanent abode of taxable persons with dependants:

By resolution of the municipal assembly, municipalities may determine a reduction of the tax rate for the real estate serving as a permanent abode of a taxable person or a household, according to the following table:

Number of dependantsFixed deduction (in €)
3 or more70
Property with low Tax Registration Value held by taxpayers with low income:

The exemption applies to individuals or their households whose gross income in the year preceding the acquisition, does not exceed 2.3 times the annual value of the IAS (Social Support Index) and the overall Tax Registration Value of all rural and urban properties owned by the household does not exceed 10 times the annual value of IAS.

Urban property subject to urban rehabilitation:

The exemption applies to urban properties subject to urban rehabilitation, for a period of 3 or 5 years, counted from the date of (ii) issuance of the municipality’s license or (ii) completion of the rehabilitation works.

Property integrated into tourism complex to which has been attributed tourism utility:

Properties integrated into tourism complex which has been attributed to tourism utility, benefit from IMI exemption for a period of seven years.

Urban property intended for the production of energy from renewable sources:

Urban property exclusively intended for the production of energy from renewable sources benefits from a 50% reduction of the IMI rate.

Other benefits of environmental nature attributed to properties:

By resolution of the municipal assembly, municipalities may determine a reduction of up to 25% of the IMI rate, applicable to the urban property with energy efficiency.

Tax incentives for forestry activity:

IMI exemption is applicable to rural property corresponding to forest areas covered by forest intervention zone, and to rural property intended for forestry exploitation under a forest management plan.

Investment Promotion Tax Regime (RFAI):

Companies that realize relevant investments, can benefit from exemption or reduction of IMI for a period of up to ten years, regarding property acquired that constitutes eligible investment.

Urban properties built, expanded, improved or acquired, intended for residential purposes:

IMI exemption applies automatically to urban properties acquired for consideration. In other cases, the exemption is subject to the approval of the head of the tax office.

Additional to the IMI (AIMI)
Tax basis

AIMI is due by individuals and corporations, as well as by structures or collective bodies without autonomous legal personality and undivided inheritances, that are owners, usufructuaries or have the surface right of urban properties located in Portugal.

Urban properties classified as “trade, industry, or services” and “others” are excluded from AIMI.

The taxable basis corresponds to the sum of the Tax Registration Value (TRV) of all the urban properties held by each taxpayer, reported as of 1 January of each year.

Deductions / Exemptions

In the case of individuals and undivided inheritances, a deduction of € 600,000 to the taxable basis is foreseen. Married or living in non-marital partnership taxpayers, who opt to submit a joint tax return, have the right to deduct € 1,200,000 from the sum of the TRV of all the urban properties.

Properties that benefited from IMI exemption in the previous year are excluded from the taxable basis.


The applicable rates, after deductions are provided, are as follows:

TaxpayerRate (%)
Individuals (1) and undivided inheritances0.7
Corporations (2)0.4
Urban properties owned by entities in tax havens7.5

(1) To the taxable amount of more than € 1,000,000 or double for married or living in non-marital, will apply a marginal rate of 1% in the case of individuals.

(2) In the case of urban properties owned by corporations, for the personal use of the shareholders, members of the board or of any administrative bodies, management or supervision, a rate of 0.7% shall be applied. To the portion of the taxable amount that exceeds € 1,000,000 a marginal rate of 1% is applied.

Settlement period and payment

AIMI is assessed by the Portuguese Tax Authorities in June of each year, being the respective payment made in September.

PIT tax credit

AIMI is deductible to the fraction of the tax corresponding to the net income generated by properties subject to AIMI, in the case of global income taxation; or deductible to the tax, in the case of application of the withholding tax of 28% to the property income, in all other cases. The deduction is also applicable to taxpayers that obtain Category B income (Business and professional income) related to lease or accommodation activities.

CIT tax credit

Taxpayers have the option of deducting the AIMI paid, limited to the fraction of the tax corresponding to the income generated by properties subject to AIMI, in the scope of lease or accommodation activities. This deduction option (deduction to the CIT fraction) jeopardizes the deduction of AIMI in the determination of CIT taxable income.