Property Tax (IMI)
Scope
- Tax registration value.
- Urban and rural properties located in the Portuguese territory.
- Owed by the owner, the usufructuary, or the holder of the surface right of a property as of the 31st December of the year concerned.
Rates
Property |
Rate (%) |
|---|---|
| Urban property | 0.3 a 0.45 |
| Rural property | 0.8 |
| Property owned by a resident in an offshore (except individuals) or by an entity dominated or controlled, directly or indirectly, by an entity domicilied in an offshore | 7.5 |
Exemptions
- Rural property in forest areas included in the forest intervention areas.
Rural properties used forestry activity included in a forest management plan.
Properties regarded as eligible investment under the Tax Regime for Investment Support (RFAI).
Urban properties built, expanded, improved or acquired for a consideration, intended for residential purposes, with a registered value up to € 125,000, owned by taxpayers which total gross income of the household does not exceed € 153,300.
Historical stores.
- Rural and urban property with low tax registration value held by taxpayers with low income.
- Properties which use is granted by construction and housing cooperatives and residents' associations to their associates.
- Urban property subject to urban rehabilitation, located in urban rehabilitation areas or urban properties built more than 30 years ago.
- Land for housing construction when there has not yet been a final decision regarding the prior control procedure for construction works.
- Properties regarding which the final decision for residential purposes has not yet been issued.
- Urban buildings or autonomous units acquired, rehabilitated or constructed to be allocated to the Lease Support Program (PAA).
- Buildings subject to a rental contract for housing, concluded before the Urban Lease Regime, in case of tenants with a corrected annual gross income (RABC) of less than five annual national minimum wages (RMNA) or aged 65 years or more or disabled with a degree of disability equal to or higher than 60%.
Rate reductions
- Permanent abode of taxable persons with dependents.
- Urban property intended for the production of energy from renewable sources.
- Reduction applicable to urban property with energy efficiency.
Aggravated rate
- Buildings or apartments vacant for over 1 year, and land for construction allowing residential use under the municipal structure plan, if located in urban pressure zones.
- Urban buildings vacant for over 1 year and buildings in ruins, whose state of conservation has not been caused by a natural disaster or calamity.
- Partially vacant urban buildings.
- Municipalities may increase the applicable IMI rate in the case of degraded buildings whose state of conservation has not been caused by a natural disaster or calamity.
- Municipalities may increase the IMI rate in the case of buildings used for local accommodation or residential buildings that are not rented or not used for own and permanent habitation.
Payment
- Amount lower or equal to € 100 – one instalment in May.
- Amount from € 100 to € 500 – two instalments in May and November.
- Amount over € 500 – 3 instalments in May, August and November.
Additional to Property Tax (AIMI)
Scope
Sum of the tax registration value of all the urban properties reported as at 1 January each year (excluding the tax registration value of properties that benefit from an exemption or that are out of scope of IMI in the previous year).
Urban properties located in the Portuguese territory (except those allocated to trade, industry, or services" and "others", as well as urban buildings classified as residential and included in the RSAA).
Owned 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.
Deductions
Individuals and undivided inheritances
Deduction of € 600,000 to the taxable basis, excluding urban buildings that have been vacant for more than 1 year, buildings in ruins and partially vacant urban buildings.
Taxpayers that are married or living in non-marital status and opt to submit a joint tax return
Deduction of € 1,200,000 to the sum of the TRV of all the relevant urban properties.
Rates
Taxpayer |
Rate (%) applicable after deductions |
|---|---|
| Individuals (1) and undivided inheritances | 0.7 |
| Corporation (2) | 0.4 |
| Urban properties owned by entities resident or domiciled in tax havens | 7.5 |
(1) In case of individuals, (i) a marginal rate of 1% applies to the taxable amount of more than € 1,000,000 and equal or lower than € 2,000,000 (or twice that amount in case of taxpayer that are married or living in non-marital status), and (ii) a marginal rate of 1.5% to the taxable amount that exceeds € 2,000,000 (or twice that amount for taxpayers that are married or living in non-marital status).
(2) In case of urban properties owned by corporations that are allocated to the personal use of the shareholders, board members or members of any administration management or supervisory bodies, the rates applicable to individuals also apply.
Assessment and payment
- Assessment: made by the Portuguese Tax Authorities in June each year.
- Payment: during the month of September.
Tax credits
PIT
Option to include in the tax return
Deduction to the fraction of the tax corresponding to the net income generated by properties subject to AIMI.
Flat tax rate of 28% / Category B (lease or accommodation activities)
Tax deduction.
CIT
Lease or accommodation activities
Taxpayers have the option to deduct the AIMI paid, capped at the portion of the tax assessed that corresponds to the income generated by properties subject to AIMI; this option prevents the deduction of AIMI for the purposes of assessment of the taxable income subject to CIT.
The contents presented are of a general and purely informative nature, not intended for any particular entity or situation, and do not replace obtaining appropriate professional advice for specific cases. PwC makes every effort to keep the 2026 Tax Guide updated; however, it cannot guarantee its up-to-date status at all times.
© 2026 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.
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