The Municipal Property Tax (IMI) is an annual tax that is paid by anyone who owns a property in Portugal.
This tax is calculated based on the patrimonial value of the property as well as its location, based on a rate that is fixed annually by each Municipality. Presently, the rates are between 0.3% and 0.45% for urban properties and 0.8% for rustic properties.
The IMI tax can be paid in full or in instalments, depending on the value:
IMI up to €100, is paid in one lump sum in the month of May;
IMI between €100 and €500 is paid in two instalments, the first in May and the second in November;
IMI over €500 can be paid in three instalments in May, August and November.
Even in situations where the amount is higher than €100, you can make the payment in full in May if you prefer.
There are also very specific situations in which you can be exempt from this tax:
Families with a gross annual income under €15,295 or with properties evaluated under €66,500 are exempt from paying IMI.
Permanent homeowners may be exempt from IMI for three years if the property value is equal to or less than €125,000 and the annual taxable income of the family under €153,300.
Other exemptions include political parties, non-profit organisations, among other very specific situations that are defined in Portuguese tax legislation.
To find out the IMI tax rate in your municipality, you can visit the Portuguese Finance website which provides the values for each municipality, by year. You just need to know the district and municipality where your property is located.
You can pay this tax in person, at your local tax office (Finanças) or post office, by ATM or through homebanking.
If you have any questions or would like to know more about real estate taxes in Portugal, please contact us. Our team of experienced Chartered Accounts will be happy to help you!