The Municipal Property Tax (IMI) for 2026, relating to the year 2025, maintains the staggered payment rules: in a single instalment in May for amounts up to €100; in two instalments (May and November) for amounts between €100 and €500; and in three instalments (by 31st May, 31st August, and 30th November) for amounts exceeding €500. Rates are set by each municipality, varying between 0.3% and 0.45% of the Taxable Asset Value (VPT) for urban properties and 0.8% for rural properties. Important exemptions exist, such as the temporary 3-year exemption for Primary and Permanent Residence (HPP), applicable under conditions of VPT (up to €125,000) and household taxable income (up to €153,300).

By Hugo Ribeiro, Certified Accountant OCC nº 64356 · HVR Business Consulting · August 2026

The Municipal Property Tax (IMI): General Framework

The Municipal Property Tax (IMI) is an annual tax levied on the taxable asset value (VPT) of rural and urban properties located in Portuguese territory. Its revenue constitutes one of the most important sources of funding for local authorities, being fundamental for the pursuit of their duties and responsibilities. The IMI is regulated by the Municipal Property Tax Code (CIMI) and complementary legislation, with rates and other provisions updated annually by municipalities and the State Budget.

For the year 2026, the rules for assessing and collecting IMI apply to properties that, as of 31st December 2025, were listed in the property register in the taxpayer's name. It is crucial for property owners to be aware of their tax obligations, payment deadlines, applicable rates, and any exemptions they may be entitled to, in order to avoid fines and late payment interest.

The property and tax management of real estate requires in-depth knowledge of these matters, with anticipation and planning being key elements for tax optimisation and to avoid unpleasant surprises. This article aims to provide a comprehensive guide to IMI in 2026, addressing the most relevant aspects for taxpayers.

IMI Payment Deadlines and Methods in 2026

IMI payment is an annual obligation that falls on the property owner as of 31st December of the year to which the tax refers (in this case, 31st December 2025). The Tax and Customs Authority (AT) sends out payment notices, which can be consulted on the Finanças Portal or received by post, containing the references for payment.

The IMI payment deadlines and methods for 2026 (relating to 2025) are defined according to the annual tax amount, as stipulated in Article 120 of the CIMI:

Annual IMI ValueInstalmentsDeadlinesUp to €1001 (single)31st May€100.01 – €500231st May and 30th NovemberMore than €500331st May, 31st August, and 30th November

It is important to note that, regardless of the IMI amount, the taxpayer always has the option to settle the entire tax in the first instalment, i.e., by 31st May. This option can be advantageous for those who prefer to fulfil their tax obligation in one go and avoid concerns about subsequent deadlines.

Payment notices are made available by the AT, either electronically (on the Finanças Portal, in the taxpayer's personal area) or by post (CTT), and contain the Multibanco references required to make the payment. For greater convenience and to avoid forgetting, adherence to direct debit is strongly recommended. This method ensures that the tax is automatically paid by the deadline, preventing delays and the respective penalties.

Consequences of non-compliance: Failure to pay an IMI instalment within the legal deadline incurs the application of late payment interest. If the non-compliance persists, the Tax and Customs Authority may initiate a tax enforcement process, which involves additional costs and can lead to the seizure of assets. Article 121 of the CIMI provides for the consequences of non-payment, referring to the Tax Procedure and Process Code (CPPT) for tax enforcement rules.

IMI Calculation: VPT and Municipal Rates

IMI is calculated annually based on two main factors: the Taxable Asset Value (VPT) of the property and the IMI rate defined by the municipality where the property is located. The formula is simple: IMI = VPT × Municipal Rate.

The Taxable Asset Value (VPT)

The VPT is the value assigned to a property for tax purposes and is determined by the Tax and Customs Authority, being distinct from the market value. This value results from an assessment that considers various factors, such as the base value of built properties, construction area, location, age of the property, quality and comfort, among others (Article 38 of the CIMI). The VPT can be updated at the initiative of the AT (for example, after significant improvement works) or at the owner's request.

It is crucial to note that the VPT may be outdated, especially for older properties. The owner has the possibility to request a re-evaluation of the VPT from Finanças (IMI 1-I model). In some cases, this re-evaluation can result in a reduction of the IMI, particularly if the property was valued before 2004, the year in which the current CIMI came into force, which introduced stricter and often lower valuation criteria for older properties.

IMI Rates by Property Type

IMI rates are set annually by each municipality, within the limits established by the CIMI (Article 112). These rates are published in the Official Gazette (Diário da República) and can be consulted on the Finanças Portal, in the area dedicated to IMI, or directly on the respective municipal council's website.

• Urban Properties: The minimum rate is 0.3% and the maximum is 0.45%. For urban properties valued before 2004, the maximum rate can go up to 0.8%. Municipalities can also apply increased rates in specific situations, such as vacant or derelict properties, or in cases of properties located in areas of urban pressure.
• Rural Properties: The IMI rate for rural properties is fixed at 0.8% throughout the national territory.

Practical Example of IMI Calculation

Let's consider two examples to illustrate the IMI calculation:

1. Apartment in Lisbon:

• Property VPT: €150,000
• IMI rate for Lisbon municipality (example): 0.3%
• Calculation: €150,000 × 0.3% = €450
• Payment Method: As the value is between €100.01 and €500, it will be paid in two instalments of €225 (May and November).

1. House in Cascais:

• Property VPT: €250,000
• IMI rate for Cascais municipality (example): 0.4%
• Calculation: €250,000 × 0.4% = €1,000
• Payment Method: As the value is over €500, it will be paid in three instalments of €333.33 (May, August, and November).

1. Rural Land in Alentejo:

• Property VPT: €50,000
• Rural property IMI rate: 0.8%
• Calculation: €50,000 × 0.8% = €400
• Payment Method: As the value is between €100.01 and €500, it will be paid in two instalments of €200 (May and November).

These examples demonstrate the importance of knowing your property's VPT and the rate applied by your municipality to estimate the IMI amount payable.

IMI Exemptions: Who May Not Pay

The IMI Code provides for various situations in which taxpayers can benefit from total or partial, temporary or permanent exemptions. These exemptions aim to protect low-income families, encourage the acquisition of a primary and permanent residence, or benefit properties with specific purposes (Articles 44 to 46 of the EBF - Tax Benefits Statute).

Temporary Exemption for Primary and Permanent Residence (HPP)

This is one of the most common exemptions and is intended for individuals who acquire a property for their primary and permanent residence. The exemption is granted for a period of 3 years and depends on the cumulative fulfilment of the following conditions (Article 46 of the EBF):

• Property VPT: The Taxable Asset Value of the property cannot exceed €125,000.
• Household Taxable Income: The annual taxable income of the household cannot exceed €153,300 in the year prior to acquisition.
• Allocation to HPP: The property must be effectively used as the primary and permanent residence of the owner or their household.

The exemption must be requested by the taxpayer from Finanças, within 60 days from the date of acquisition of the property or its completion, if it is a new construction. It is essential to meet this deadline to avoid losing the right to the benefit.

Permanent Exemption for Low-Income Households

This exemption aims to protect low-income households and is automatically granted by the Tax Authority, provided the legal limits are met (Article 44 of the EBF):

• Annual Taxable Income: The annual taxable income of the household cannot exceed 2.3 times the annual value of the Social Support Index (IAS) in the previous year (in 2026, with the IAS of €537.13 set by Ordinance 480-A/2025/1 of 30 December, this limit is 2.3 * €537.13 * 14 = €17,295.59, but note that the IAS is updated annually).
• Total VPT of Properties: The total VPT of all rural and urban properties owned by the household cannot exceed 10 times the annual value of the IAS (in 2026, 10 * €537.13 * 14 = €75,198.20, with the IAS of Ordinance 480-A/2025/1 of 30 December).

Unlike the temporary exemption, this one is automatically applied and does not require a request from the taxpayer, being verified annually by the AT based on income tax returns (IRS) data.

Other Exemptions and Benefits

• Properties of Municipal, National, or Public Interest: Properties classified as being of national, public, or municipal interest may benefit from IMI exemption, upon recognition by the competent authorities.
• Properties Used for Cultural, Sports, Religious, or Environmental Purposes: Properties used by public utility institutions or for specific purposes may be exempt from IMI.
• Properties for Residential Letting: In some municipalities, there may be benefits for properties intended for controlled-cost residential letting or affordable housing schemes.

Family IMI (Fixed Deduction per Dependent)

Family IMI is not an exemption, but rather a fixed deduction from the IMI amount payable, provided for municipalities that adopt this measure (Article 112-A of the CIMI). This deduction applies to owners of properties used as primary and permanent residences who have dependants in their care. The deduction amounts are:

• €20 with one dependant;
• €40 with two dependants;
• €70 with three or more dependants.

The application of this deduction depends on the decision of each municipality. Taxpayers can check if their municipality has adopted this measure by consulting the annual list of rates and deductions on the Finanças Portal or on the respective Municipal Council's website. The deduction is automatically applied by the AT, provided the taxpayer has dependants registered for IRS purposes and the property is used as a primary and permanent residence.

The Additional to IMI (AIMI): Scope and Calculation

In addition to IMI, there is the Additional to Municipal Property Tax (AIMI), which is levied on the sum of the Taxable Asset Values (VPT) of certain types of properties. AIMI was introduced in 2017 and aims to tax higher-value real estate assets (Article 135-C et seq. of the CIMI).

Properties Subject to AIMI

AIMI is levied on the sum of the VPTs of the following types of properties:

• Urban residential properties;
• Building plots, when the owner is an individual or an undivided inheritance.

Rural properties and urban properties used for commerce, industry, or services are excluded from AIMI.

Thresholds and Rates

AIMI applies to the portion of the global VPT that exceeds a certain threshold. The rules vary depending on the taxpayer:

• Individuals and Undivided Inheritances:
• Exemption Threshold: The sum of the VPTs of residential properties and building plots they own is exempt up to €600,000.
• Rate: On the portion exceeding €600,000 and up to €1,000,000, a rate of 0.7% applies.
• Increased Rate: On the portion exceeding €1,000,000, a rate of 1% applies.
• Legal Entities (Companies):
• Exemption Threshold: There is no exemption threshold.
• Rate: A single rate of 0.4% applies to the entire VPT of residential properties and building plots.
• Increased Rate: For properties held by entities with tax domicile in tax havens, the rate is 7.5%.

Joint Taxation for Couples

Couples (subject to joint taxation for IRS purposes) can opt for joint taxation for AIMI purposes. This option allows the exemption threshold to be doubled to €1,200,000 (2 x €600,000). The option must be communicated to the AT in March of each year, through a specific declaration.

Practical Example of AIMI Calculation

Consider a single taxpayer with the following properties:

• Apartment 1 (Primary Residence): VPT of €400,000
• Apartment 2 (Investment): VPT of €300,000
• Building plot: VPT of €150,000
• Shop (Commercial): VPT of €200,000

For AIMI calculation, only the apartments and the building plot are considered, as the shop is an urban property used for commerce.

Sum of eligible VPTs: €400,000 + €300,000 + €150,000 = €850,000

AIMI Calculation:

• Amount subject to AIMI: €850,000 - €600,000 (exemption threshold) = €250,000
• AIMI payable: €250,000 × 0.7% = €1,750

If this taxpayer were married and opted for joint taxation, the exemption threshold would be €1,200,000. As the sum of eligible VPTs (€850,000) is below this limit, no AIMI would be paid.

Tax Planning and AIMI

For investors with multiple properties, the ownership structure (personal vs. corporate) can have a significant impact on the AIMI payable. A detailed analysis of assets and applicable rates is essential for efficient tax planning. Specialised accounting for the real estate sector can help optimise the tax burden, considering not only AIMI but also other taxes such as Corporate Income Tax (IRC) or Personal Income Tax (IRS) on rental income and capital gains.

Taxes on Property Purchase and Sale: Beyond IMI

IMI is a recurring property tax, but the life cycle of a property involves other important taxes upon its transaction. The purchase and sale of properties in Portugal are subject to Municipal Tax on Onerous Property Transfers (IMT) and Stamp Duty upon purchase, and Capital Gains tax upon sale. Understanding these charges is fundamental for any real estate decision.

Municipal Tax on Onerous Property Transfers (IMT)

IMT is a tax paid at the time of property acquisition and is levied on the higher of the value declared in the deed and the VPT (Taxable Asset Value). IMT rates are progressive and vary according to the purpose of the property (primary permanent residence, secondary residence or for rent, or other purposes) and its location (mainland or islands). There are exemptions and reduced rates for specific situations, such as acquisition for HPP up to certain values (Article 1 et seq. of the CIMI).

Example: Acquisition of a property for HPP on the mainland with a value of €200,000. Using an IMT simulator, for this value, the applicable rate will be in an intermediate band with a fixed portion to be deducted. The exact calculation depends on the annual tables, but it could result in an IMT of around €3,000 to €4,000, for example.

Stamp Duty (IS)

Stamp Duty is levied on various acts, contracts, and financial operations, including property acquisition. When purchasing a property, Stamp Duty is levied on the transaction value (value declared in the deed or VPT, whichever is higher) at a rate of 0.8% (Article 2 and General Table of Stamp Duty of the CIS). It is paid at the time of the deed, along with IMT.

Example: Acquisition of a property with a value of €200,000. Stamp Duty: €200,000 × 0.8% = €1,600.

Real Estate Capital Gains on Sale

When a property is sold for a value higher than its acquisition cost, the profit (capital gain) is subject to tax. For individuals resident in Portugal, capital gains are aggregated with other income for IRS purposes and taxed at progressive rates, with only 50% of the capital gain value being taxed. However, there are important reinvestment benefits that can exempt or significantly reduce this tax, namely when the sale value is reinvested in the acquisition of another property for HPP (Articles 10 and 43 et seq. of the CIRS).

Example: Sale of a property acquired for €150,000 (acquisition cost + charges) for €250,000. Gross capital gain: €250,000 - €150,000 = €100,000. Taxable capital gain (50%): €50,000. If this amount is fully reinvested in the purchase of another HPP, there may be an exemption. Otherwise, the €50,000 will be added to other income for IRS calculation.

The complexity of these taxes and the existence of tax benefits make tools such as the IMT 2026 simulator and the capital gains simulator indispensable for a complete and informed analysis before any transaction. Consulting a specialist is always recommended for rigorous tax planning.

Common IMI Mistakes to Avoid

IMI management, while seemingly simple, can lead to errors that result in additional costs or loss of tax benefits. Being aware of these misconceptions is the first step to avoiding them.

1. Ignorance of Payment Deadlines: The most basic error is non-compliance with deadlines. Delays in IMI payment result in the application of late payment interest and, in cases of persistence, the initiation of tax enforcement proceedings with added costs. Adherence to direct debit is the most effective way to prevent this error.
2. Not Verifying the Taxable Asset Value (VPT): Many owners assume that the VPT assigned to their property is correct. However, the VPT may be outdated, especially if the property was valued before 2004. Requesting a re-evaluation can, in many cases, lead to a reduction in the IMI payable. Not checking and, if applicable, not requesting a re-evaluation, can mean paying more IMI than due.
3. Not Claiming Exemptions: The temporary exemption for Primary and Permanent Residence (HPP) is not automatic and must be requested within 60 days of acquisition or completion of construction. Many taxpayers lose this benefit due to lack of knowledge or failure to meet the deadline. Even the permanent exemption, although automatic, depends on the taxpayer having their income and asset data updated with Finanças.
4. Unawareness of the Municipal IMI Rate: IMI rates vary between municipalities. Not knowing the rate applied in your location prevents an accurate estimate of the tax and verification of its compliance. It is important to consult the rate annually on the Finanças Portal or the municipal council's website.
5. Not Communicating Relevant Changes to the AT: Changes in household composition, property use (e.g., from HPP to secondary rental), or significant works that increase the property's value must be communicated to the Tax Authority. Failure to communicate can lead to incorrect valuations and, consequently, undue payments (either too much or too little, with respective penalties in case of undervaluation).
6. Ignoring AIMI: With the introduction of the Additional to IMI, owners with higher real estate assets may be subject to an additional tax. Not considering AIMI in tax planning can lead to unpleasant surprises. Couples who can benefit from joint taxation for AIMI should activate this option annually.
7. Not Seeking Specialised Advice: Tax legislation is complex and constantly changing. Trying to manage all tax obligations and benefits independently can lead to errors. Consulting a Certified Accountant or a tax lawyer can ensure that all obligations are met and that all applicable benefits are taken advantage of.

Frequently Asked Questions (FAQ) about IMI 2026

When is IMI paid in 2026?

The IMI for 2026 (referring to 2025) has staggered payment deadlines: if the amount is up to €100, it is paid in a single instalment by 31st May. Between €100.01 and €500, it is paid in two instalments (May and November). If the amount exceeds €500, payment is made in three instalments (May, August, and November). The taxpayer can always choose to pay the entire IMI in the first instalment, by 31st May.

What is the IMI rate in 2026?

The IMI rate for urban properties varies between 0.3% and 0.45% of the Taxable Asset Value (VPT), being defined annually by each municipality. For rural properties, the rate is fixed at 0.8%. You can consult the specific rate for your municipality on the Finanças Portal or on the respective Municipal Council's website.

Who is exempt from IMI?

There are two main exemptions:

1. Temporary exemption (3 years): For those acquiring a property for Primary and Permanent Residence (HPP), with a VPT up to €125,000 and annual household taxable income up to €153,300. This exemption must be requested.
2. Permanent exemption: For low-income households, automatically granted by the AT, provided the annual taxable income does not exceed 2.3 times the IAS and the total VPT of properties does not exceed 10 times the IAS.

There are also other exemptions for properties with specific purposes (cultural, sports, etc.).What is family IMI?

Family IMI is a fixed deduction from the IMI amount for a primary and permanent residence, applied in municipalities that adopt this measure. The deduction varies according to the number of dependants: €20 for one dependant, €40 for two dependants, and €70 for three or more dependants. It is applied automatically if the municipality adheres and the taxpayer meets the requirements.

What happens if I don't pay IMI on time?

Non-payment of IMI within the legal deadline implies the collection of late payment interest. If the debt persists, the Tax and Customs Authority may initiate a tax enforcement process, which incurs additional costs and can lead to the seizure of assets. Adherence to direct debit is an effective way to avoid this problem.

How can I find out my property's VPT?

You can consult your property's VPT on the Finanças Portal, by accessing your personal area and looking for the "Património" (Assets) or "Imóveis" (Properties) section. Alternatively, the VPT is listed in the Urban or Rural Property Register (Caderneta Predial), which can also be obtained from the Finanças Portal.

Conclusion and Final Recommendations

IMI is a fundamental tax in the Portuguese tax system, with direct implications for real estate asset management. Understanding its mechanisms, from rate calculation to payment methods and available exemptions, is crucial for all property owners. For 2026, the rules remain aligned with previous years, but attention to detail continues to be key to avoiding surprises and optimising the tax burden.

We strongly recommend that taxpayers:

• Annually verify the VPT of their properties: A re-evaluation can, in many cases, result in significant IMI savings.
• Take advantage of exemptions and deductions: Ensure they meet the requirements for temporary or permanent exemptions and, if their municipality adheres, benefit from Family IMI.
• Adhere to direct debit: This is the safest way to ensure compliance with payment deadlines and avoid late payment interest and tax enforcement proceedings.
• Plan their real estate transactions: When buying or selling a property, consider not only IMI but also IMT, Stamp Duty, and capital gains, using simulators and seeking specialised advice.
• Stay informed: Tax legislation can change. Regularly consult the Finanças Portal and official publications to stay updated.

The tax management of properties is a complex area that requires constant knowledge and attention. At HVR Business Consulting, we are prepared to help you navigate this scenario, ensuring that your tax obligations are met efficiently and that all benefits you are entitled to are taken advantage of. Whether for accounting for the real estate sector, tax consulting, or support in optimising your assets, our team of specialists is at your disposal.

Do not leave your tax obligations until the last minute. Contact us today for a personalised analysis of your situation and discover how we can add value to your asset management.

Related Content and Useful Tools

• IMT 2026 Simulator
• Real Estate Capital Gains Simulator
• Accounting for the Real Estate Sector
• Speak to HVR Business Consulting →
• Complete Guide: IRS and Properties in Portugal

Sources and Legal References

• Municipal Property Tax Code (CIMI) - Articles 112, 120, 121, 135-C et seq.
• Tax Benefits Statute (EBF) - Articles 44, 46.
• Municipal Tax on Onerous Property Transfers Code (CIMT) - Article 1 et seq.
• Stamp Duty Code (CIS) - Article 2 and General Table of Stamp Duty.
• Personal Income Tax Code (CIRS) - Articles 10, 43 et seq.
• Tax Procedure and Process Code (CPPT) - Provisions relating to tax enforcement.
• Finanças Portal - Information and online services of the Tax and Customs Authority.