Property Ownership Taxes in Portugal
IMI, AIMI and what determines your annual payments — current 2025 rates
What You Need to Know
After purchasing property in Portugal, owners pay an annual municipal tax called IMI. For high-value property, AIMI — an additional wealth tax — also applies. Understanding these taxes helps you plan expenses and find legal optimization strategies.
Important: the tax base is VPT (Valor Patrimonial Tributário), the tax assessment value, which is usually lower than market value.
IMI — Imposto Municipal sobre Imóveis
Municipal Property Tax
IMI is an annual tax paid by all property owners in Portugal. Each municipality sets its own rate within legal limits.
Base IMI Rates (2025)
| Property Type | Rate | Note |
|---|---|---|
| Urban Property | 0.3% – 0.45% | Rate set by municipality |
| Rural Property | 0.8% | Fixed rate |
| Offshore Owner | 7.5% | Blacklisted jurisdictions |
Rates by Major Cities (2025)
Each municipality publishes its rate annually
Lisbon
0.3%
Porto
0.35%
Cascais
0.34%
IMI Exemptions
Primary Residence (up to 3 years)
3-year exemption for permanent residence if VPT ≤ €125,000 and family income ≤ €153,300
Building Rehabilitation
3-year exemption after completing rehabilitation in urban recovery zones
Low Income
Full exemption for families with income ≤ 2.3× IAS (€15,469.90/year) and VPT ≤ 10× IAS
AIMI — Adicional ao IMI
Additional Wealth Tax
AIMI is an additional tax for owners of high-value property. It applies to the total value of all property owned above the threshold.
AIMI Rates (2025)
| Owner Type | Threshold | Rate |
|---|---|---|
| Individual | €600,000 – €1,000,000 | 0.7% |
| Individual | Above €1,000,000 | 1.0% |
| Company | All property | 0.4% |
| Married couple (joint filing) | Threshold doubled | €1,200,000 |
Example: An individual owns property with total VPT of €800,000. AIMI = (€800,000 - €600,000) × 0.7% = €1,400/year
VPT Revaluation
Tax Optimization Strategy
Owners can request a revaluation of their property's tax value (VPT) every 3 years. If VPT is overvalued (building aged, condition deteriorated), revaluation can reduce IMI.
Important
Revaluation can either decrease or increase VPT. Before requesting, use the official simulator on Portal das Finanças.
Check current VPT in Caderneta Predial
Use the simulator on Portal das Finanças
If new VPT is lower — submit revaluation request
Payment Schedule
Deadlines and Installments
IMI
| IMI Amount | Payments | Due Dates |
|---|---|---|
| Up to €100 | 1 | May |
| €100 – €500 | 2 | May, November |
| Above €500 | 3 | May, August, November |
AIMI
Calculation: June | Payment: September (single payment)
Practical Example
Apartment in Lisbon
Market value: €400,000
VPT (tax assessment): €180,000
IMI rate in Lisbon: 0.3%
Total: Owner pays €540 per year — that's €45 per month. Payment in 3 installments: May (€180), August (€180), November (€180).
Need Help with Calculations?
We'll help you calculate annual taxes for your property and advise on optimization through VPT revaluation.