IMI 2026: Portugal property tax, deadlines and how to pay less
IMI (Imposto Municipal sobre Imóveis) is Portugal's annual property tax. What you pay depends on the property's tax value (VPT) and the rate set by your municipality, and there are legal ways to reduce it.
Who pays and when
IMI is paid by whoever owns the property on 31 December of the tax year, and it is billed the following year: 2025 IMI is paid in 2026. The number of instalments depends on the total:
| Annual IMI | Instalments | Due |
|---|---|---|
| Up to €100 | 1 | By 31 May |
| Over €100, up to €500 | 2 | May and November |
| Over €500 | 3 | May, August and November |
You can pay everything in May. If you miss an instalment, the remaining ones fall due immediately, with late-payment interest.
If you bought a home in March 2026, your first IMI is the 2026 tax, billed in 2027, and it may be zero if you qualify for the own-home exemption below. The payment notice is available on the Portal das Finanças; you can pay with the Multibanco reference at an ATM or through online banking.
How it is calculated
IMI = VPT × municipal rate, minus any deductions.
- Urban property: 0.3% to 0.45%, set each year by the municipality.
- Rural land: 0.8%.
- Vacant or derelict buildings: the rate can be tripled.
The VPT is shown in the property record (caderneta predial). It comes from a formula using building cost, area, use, location, quality and comfort, and age.
Example: VPT of €150,000 at 0.35% gives €525, paid in three instalments of €175. With the family discount for two dependants, it drops to €455, paid in May and November.
Family discount (IMI familiar)
Municipalities can grant a fixed deduction on your permanent home: €30 for one dependant, €70 for two and €140 for three or more. It is automatic if your council takes part and the home is everyone's tax address.
Exemptions
- Up to 3 years for a newly bought own permanent home with a VPT up to €125,000, if the household's taxable income in the previous year was no more than €153,300. You must apply for it, and there are deadlines, so change your tax address and apply soon after moving in.
- Permanent exemption for low-income households (gross income up to 2.3 × 14 × IAS and total property VPT up to 10 × 14 × IAS). The tax authority grants it automatically and reviews it every year.
How to pay less
- Request a reassessment (IMI Modelo 1 form) if at least 3 years have passed since the last one. The age coefficient falls over time but the VPT is not updated automatically for it. Run the VPT simulator on the Portal das Finanças first: other coefficients, such as building cost or location, may have risen, so the value could go up.
- Check the property record for errors in area, use or comfort features.
- Make sure exemptions and the family discount are being applied.
| Building age | Age coefficient |
|---|---|
| Under 2 years | 1.00 |
| 2–8 years | 0.90 |
| 9–15 years | 0.85 |
| 16–25 years | 0.80 |
| 26–40 years | 0.75 |
| 41–50 years | 0.65 |
| Over 50 years | 0.55 |
Owners with residential property worth over €600,000 (VPT per person) also pay the additional IMI (AIMI) in September.
Buying a home? See our IMT guide. For your car, read the IUC guide.