Property Tax

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.


Property Rates (%)
Urban property 0.3 to 0.45
Rural property 0.8
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 as a permanent place of residence:

Exemption applies for a three-year period, in case of urban properties with a Tax Registration Value up to € 125,000, held by individuals which 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 are 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 in benefit of the spouse, ascendants and descendants.

Additionally, the IMI increase is not applicable to taxpayers that comprise with 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 dependants Fixed deduction (in €)
1 20
2 40
3 or more 70

Property with low Tax Registration Value held by taxpayers with low income:

The exemption applies to individuals or their household 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. This exemption also applies to properties which use is granted by construction and housing cooperatives and residents' associations to their associates.

Urban property subject to urban rehabilitation:

The exemption applies to urban properties subject of urban rehabilitation, located in urban rehabilitation areas or urban properties built more than 30 years ago, for a period of 3, renewable for a period of5 years, counted from the date of (ii) issuance of the municipality’s license or (ii) completion of the rehabilitation works, which are intended for lease for permanent abode or main permanent abode.

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

Properties integrated in tourism complex to which has been attributed 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, benefit 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 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 constitute 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.

Historical stores

The historical stores, recognized by the Municipalities as establishments of historical, cultural or social interest and that integrate the national inventory, are exempt from IMI from the year in which these situations occur.

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 at 1 January of each year.  

Deductions / Exemptions

In 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 to 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 provided, are as follows:

Taxpayer Rate (%)
Individuals (1) and undivided inheritances 0.7
Corporations (2) 0.4
Urban properties owned by entities in tax havens 7.5

(1) To the taxable amount of more than € 1,000,000, or the double for married or living in non-marital, will apply a marginal rate of 1% in 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 the taxpayers that obtain Category B income (Business and professional income) related to lease or accommodation activities.

CIT tax credit

Taxpayers have the option of deduct 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) jeopardises the deduction of AIMI in the determination of CIT taxable income.

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PwC Tax

Dúvidas e questões, PwC Portugal

Tel: +351 213 599 616


Informações, subscrição e apoio técnico, PwC Portugal

Tel: +351 213 599 616

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