If you live abroad and own property or earn income in Portugal, four things drive your year. IMI is paid in May, with a second instalment in August where the bill exceeds €500 and a final one in November. AIMI is assessed in June and paid in September, and only bites above €600,000 of taxable value for an individual. The IRS return is filed between 1 April and 30 June — with Anexo F for rent and Anexo G for a sale — and if you have either, you must file: the usual filing exemption does not cover you. Modelo 30 arises only if you yourself pay income to a non-resident, and is due by the end of the second month after payment. A fiscal representative is optional if you live in the EU or EEA, and unnecessary for anyone who signs up to electronic notifications from the Tax Authority; where it is required and you have neither, the fine runs from €75 to €7,500.
The year at a glance
Portugal does not send non-residents a reminder. The assessment notices go to the address or the electronic mailbox the Tax Authority has on file, and the deadlines run whether or not you saw them. This is the recurring annual cycle — the months are fixed by the codes, so the table holds from one year to the next.
| When | What falls due | Applies to | Legal basis |
|---|---|---|---|
| February and April | The Tax Authority issues the IMI assessment for the previous year | Every property owner | CIMI art. 113(2) |
| 1 April – 30 June | IRS return (Modelo 3) for the previous year, with Anexo F and Anexo G where relevant | Anyone with rent, a property sale or other income not finally withheld at source | CIRS art. 60(1) |
| May | IMI — the only instalment up to €100, or the first of two or three | Whoever owned the property on 31 December of the year the tax refers to | CIMI arts. 8(1) and 120(1) |
| June | The Tax Authority issues the AIMI assessment for the current year | Owners whose total taxable value exceeds the threshold | CIMI art. 135-G(4) |
| August | IMI second instalment, where the annual bill exceeds €500 | Larger holdings | CIMI art. 120(1)(c) |
| September | AIMI payment | Owners assessed in June | CIMI art. 135-H(1) |
| November | IMI final instalment — the second where the bill is €100 to €500, the third where it exceeds €500 | Most owners paying in instalments | CIMI art. 120(1)(b) and (c) |
| Any month | Modelo 30, by the end of the second month after the payment | Anyone who pays Portuguese-source income to a non-resident | CIRS art. 119(7)(a); CIRC art. 128 |
| 31 December | Extended IRS deadline where foreign income with a tax credit is not yet quantified at source | Taxpayers who notified the Tax Authority within the normal window | CIRS art. 60(3) and (4) |
Two of these dates catch people out every year. The first is May, because the IMI you pay then relates to the previous year and to whoever owned the property on 31 December of that year — so if you sold in February, the bill arriving in May is still yours. The second is September, because AIMI runs on a different clock from IMI: ownership is fixed at 1 January of the current year, under Article 135-A(3) of the CIMI.
IMI: the instalments and who pays them
IMI is due from whoever owns the property on 31 December of the year to which the tax relates — Article 8(1) of the Municipal Property Tax Code (CIMI, approved by Decree-Law no. 287/2003) — with Article 8(4) presuming that owner to be whoever appears in the property register on that date. Keeping the register current is therefore not a formality.
Article 120(1) of the CIMI, in the wording given by Law no. 71/2018 of 31 December, sets the instalments:
| Annual IMI | Instalments | Months |
|---|---|---|
| Up to €100 | One | May |
| More than €100 and up to €500 | Two | May and November |
| More than €500 | Three | May, August and November |
A note on precision, since this is widely misreported: the thresholds are €100 and €500. The €250 figure still circulating online belongs to the pre-2019 regime, which also used different months. And the Code says "in the month of May", not a fixed calendar date, so where the month's last day falls on a weekend the Tax Authority's own annual calendar carries the deadline to the next working day.
Rates are set by each municipality within the band in Article 112(1): 0.3% to 0.45% of the taxable value (VPT) for urban property, and a fixed 0.8% for rural property. A municipality that does not communicate its rate by 31 December falls back to the minimum (Article 112(14)). Article 112(4) adds a punitive 7.5% for owners domiciled in a blacklisted jurisdiction, but Article 112(17) excludes individuals from it — so this hits offshore structures, not people. Our dedicated article on IMI deadlines, rates and exemptions goes through the exemptions in detail.
AIMI: June and September
AIMI, the additional property tax in Chapter XV of the CIMI (Articles 135-A to 135-K, introduced by Law no. 42/2016 of 28 December), is the one most non-resident owners either overlook or over-worry about. The mechanics:
- Ownership is fixed at 1 January of the year the tax relates to — Article 135-A(3), not 31 December as for IMI.
- Individuals and undivided estates deduct €600,000 from the total taxable value of their urban residential property — Article 135-C(2). Companies get no such deduction.
- The rate is 0.7% for individuals and undivided estates and 0.4% for companies (Article 135-F(1)), with a marginal 1% on taxable value above €1,000,000 up to €2,000,000 and 1.5% above €2,000,000 — those two marginal bands applying to individuals only (Article 135-F(2) and (3)).
- Assessment in June, payment in September — Articles 135-G(4) and 135-H(1).
In practice, a non-resident with one apartment will never see an AIMI notice. A non-resident with a portfolio, or holding through a company, should expect one every September and should know that the company route trades a lower headline rate for the loss of the €600,000 deduction.
The IRS return: 1 April to 30 June
Article 60(1) of the Personal Income Tax Code (CIRS) sets the filing window for the Modelo 3 return at 1 April to 30 June, electronically, "whether or not that day is a working day". There is no separate, later window for non-residents.
Do you have to file at all?
This is where a lot of bad advice circulates. Article 58(1)(a) of the CIRS exempts from filing taxpayers whose only income is taxed at the withholding rates in Article 71 and who do not elect to aggregate it. Article 71 covers capital income and, for non-residents, employment and business income, pensions and certain other items. It does not cover rental income or property capital gains, which are taxed under Article 72.
So the rule for a non-resident property owner is simple: rent or a sale means you file. The exemption is not available to you, no matter how small the amount.
Anexo F — rental income
Rental income is Category F, defined in Article 8 of the CIRS, and reported on Anexo F. The rate depends on what you let and for how long, and the flat 28% that everyone quotes is now only part of the picture.
| Letting | Rate | Legal basis |
|---|---|---|
| Residential letting | 25% | CIRS art. 72(2), wording of Law no. 56/2023 of 6 October |
| Any other rental income | 28% | CIRS art. 72(1)(e), wording of Law no. 82/2023 of 29 December |
| Permanent-residence lease, 5 to under 10 years | −10 percentage points (−2 more per renewal, capped at −10) | CIRS art. 72(3) |
| Permanent-residence lease, 10 to under 20 years | −15 percentage points | CIRS art. 72(4) |
| Permanent-residence lease, 20 years or more | −20 percentage points | CIRS art. 72(5) |
The long-lease reductions apply only to permanent-residence lettings, and they come with conditions: Article 72(23) excludes contracts signed from 1 January 2024 whose rent exceeds by more than 50% the caps in Portaria no. 176/2019, and Article 72(20) claws the reduction back where the landlord ends the contract early. If you are resident in the EU or EEA, Article 72(15) lets you opt instead for the progressive rates of Article 68 on the income covered by Article 72(1)(b) and (e) — worth modelling rather than assuming, since it can go either way.
Anexo G — selling a property
This is the single most misreported item in English-language material about Portuguese tax, so it is worth being exact. Until the end of 2022, Article 43(2) of the CIRS limited the 50% reduction of the gain to disposals "made by residents", and non-residents were taxed on the full gain. Law no. 24-D/2022 of 30 December deleted those words. Note that it is that law — not Law no. 56/2023, which is frequently credited with the change.
The position now, for a non-resident selling Portuguese property:
- only 50% of the gain is taken into account — Article 43(2)(b) of the CIRS;
- that half is mandatorily aggregated, because Article 22(3) excludes non-resident income from aggregation except the gains in Article 10(1)(a) and (d), which is exactly property;
- it is therefore taxed at the progressive rates of Article 68, not at a flat 28%;
- and under Article 22(10), added by the same Law no. 24-D/2022, your worldwide income is taken into account to determine the rate — on the same terms that apply to residents.
That last point is the sting. The 50% reduction was a real improvement for most sellers, but the rate is now set by reference to income you earn outside Portugal, which you must declare for that purpose. A high earner abroad can end up at the top of the Portuguese scale on a modest Portuguese gain. Our article on property capital gains works through the computation and the reinvestment relief.
Modelo 30: only if you are the one paying
Modelo 30 is often mentioned to non-residents as though it were their own annual return. It is not. It is the declaration filed by whoever pays Portuguese-source income to a non-resident, and the deadline is the end of the second month after the payment, the maturity, the making available or the quantification of the amount — Article 119(7)(a) of the CIRS and Article 128 of the CIRC. The form was approved by Portaria no. 98/2021 of 5 May, which repealed the earlier Portarias; filing is electronic only, and errors must be corrected within 30 days or the return is treated as not filed.
It becomes your problem if you operate here — paying a foreign supplier, a foreign shareholder or a foreign service provider out of a Portuguese business. Our guide to Modelo 30 and withholding on payments to non-residents covers the treaty mechanics.
Do you need a fiscal representative?
Probably not, and this is the area where non-residents are most often sold something they do not need. The rules were verified for this article against the consolidated texts, because the references circulating online are substantially wrong.
Article 19(6) of the General Tax Law (LGT, approved by Decree-Law no. 398/98) requires taxpayers resident abroad — and residents who leave Portugal for more than six months, and companies that cease activity — to appoint a representative resident in Portugal. Article 19(7) blocks the exercise of taxpayer rights, including complaints and appeals, where none is appointed. Then come the two escape routes:
| Your situation | Fiscal representative | Legal basis |
|---|---|---|
| Resident in the EU or the EEA | Optional | LGT art. 19(8) |
| Signed up to electronic notifications, the morada única digital or the electronic tax mailbox | Not required (except for companies ceasing activity) | LGT art. 19(15), added by art. 2 of Decree-Law no. 44/2022 of 8 July |
| Resident outside the EU/EEA, cancelling that electronic adhesion | Must appoint one first | LGT art. 19(16) |
| Resident outside the EU/EEA, no representative and no electronic adhesion | Required — fine of €75 to €7,500 | RGIT art. 124(1) |
| Non-established taxable person for VAT, established in another Member State | Optional | CIVA art. 30(1) |
| Non-established taxable person for VAT, not established in the EU | Mandatory | CIVA art. 30(2) |
Three corrections worth carrying away, because all three wrong references are common in English-language sources:
- Law no. 7/2021 is not the diploma that changed this. It reinforced taxpayer guarantees and procedural simplification generally; it does not amend Article 19 of the LGT or touch fiscal representation of non-residents. The right diploma is Decree-Law no. 44/2022 of 8 July.
- RGIT Article 12 is not the penalty provision. It sets the penalties applicable to tax crimes. The penalty for failing to appoint a representative is Article 124, at €75 to €7,500, with Article 124(2) adding €75 to €3,750 where a representative fails to identify the manager of assets or rights on request.
- CIVA Article 27 is not about representation. It governs VAT payment deadlines. Fiscal representation for VAT is Article 30.
One trap: the VAT representative under CIVA Article 30(2) is a separate obligation from the general tax representative in the LGT, and the electronic-notifications exemption in LGT Article 19(15) does not displace it. A non-EU owner who runs a VAT-registered short-let business here can be exempt from one and required to have the other. See our fiscal representation service, and if you are still at the stage of obtaining a tax number, our guides to the Portuguese NIF and the NIF for non-residents.
Buying and selling: the deadlines around the deed
These are one-off rather than annual, but they are the deadlines that cost the most when missed, because the deed cannot proceed without them.
- IMT must be assessed before the transfer — Article 22(1) of the IMT Code. The assessment lapses if the transfer does not happen within two years (Article 22(4)).
- IMT is paid on the day of assessment or within the following 30 days, failing which the assessment ceases to have effect — Article 36(1). Where the deed is executed abroad, payment is due during the following month (Article 36(2)) — directly relevant to non-residents signing before a consulate or a foreign notary.
- Stamp duty on the acquisition (item 1.1 of the tariff, 0.8%) is paid on the same timetable as IMT — Article 44(4) of the Stamp Duty Code.
What happens if you miss a deadline
Nothing dramatic happens immediately, and that is the problem — the cost accrues quietly. Late payment interest is due from the end of the payment period until payment (Article 44(1) and (2) of the LGT), at the rate set annually for debts to the State under Article 3 of Decree-Law no. 73/99. For 2026 that rate is 7.221%, fixed by Aviso no. 18/2026/2 of 2 January. It is halved where the debt is covered by a bank guarantee or other security (Article 3(4)).
After the voluntary payment period ends, the services issue a debt certificate — Article 88(1) of the CPPT — and that certificate is the basis for opening enforcement proceedings (Article 88(5)). For a non-resident, enforcement against a Portuguese property is straightforward for the Tax Authority and slow and expensive for you. Article 44(4) of the LGT offers one mitigation: pay within 30 days of being served and interest stops at the date of service.
The practical risk for non-residents is not negligence, it is not receiving the notice. Signing up to electronic notifications solves the fiscal-representative question and the delivery question in one move, which is why we recommend it to almost every non-resident client who is EU or EEA resident.
How we help
We act for non-resident owners and investors from Lisbon, in English, and the work is usually the same shape: confirm the filing obligations, get the electronic notifications set up so nothing arrives at an address you left years ago, file the IRS return with the right annexes, and keep the property register accurate so the assessments are right in the first place. IRS returns start at €100 plus VAT. Monthly accounting for companies starts at €150 a month.
Frequently asked questions
When do non-residents pay IMI in Portugal?
In May where the annual bill is up to €100; in May and November where it is between €100 and €500; and in May, August and November where it exceeds €500 — Article 120(1) of the CIMI. The tax is owed by whoever owned the property on 31 December of the year the tax relates to (Article 8(1)), so a bill arriving in May can relate to a property you have already sold.
Does a non-resident have to file an IRS return in Portugal?
Yes, if you have rental income or sold a property. The filing exemption in Article 58(1)(a) of the CIRS only covers income taxed at the withholding rates of Article 71, and rental income and property capital gains are taxed under Article 72 instead. The window is 1 April to 30 June under Article 60(1), with no later deadline for non-residents.
How is rental income taxed for a non-resident in Portugal?
Residential lettings are taxed at an autonomous rate of 25% under Article 72(2) of the CIRS, in the wording of Law no. 56/2023, and other rental income at 28% under Article 72(1)(e). Long leases of a permanent residence reduce the rate further — by 10 points for five to under ten years, 15 points for ten to under twenty, and 20 points for twenty or more (Article 72(3) to (5)). EU and EEA residents may instead opt for progressive rates under Article 72(15).
Are non-residents taxed on 50% of a property capital gain?
Yes. Law no. 24-D/2022 of 30 December removed the words "made by residents" from Article 43(2) of the CIRS, so only 50% of the gain is taken into account for non-residents too. That half is mandatorily aggregated, because Article 22(3) excludes non-resident income from aggregation except the gains in Article 10(1)(a) and (d), and is taxed at the progressive rates of Article 68. Under Article 22(10) your worldwide income is taken into account to determine which rate applies.
When is AIMI paid, and who has to pay it?
AIMI is assessed in June and paid in September, under Articles 135-G(4) and 135-H(1) of the CIMI. Ownership is fixed at 1 January of the year the tax relates to (Article 135-A(3)). Individuals and undivided estates deduct €600,000 from the total taxable value (Article 135-C(2)) and pay 0.7%, rising marginally to 1% above €1,000,000 and 1.5% above €2,000,000; companies pay 0.4% with no deduction (Article 135-F).
Do I need a fiscal representative in Portugal if I live abroad?
Not if you live in the EU or the EEA, where appointment is merely optional under Article 19(8) of the General Tax Law. And under Article 19(15), added by Article 2 of Decree-Law no. 44/2022 of 8 July, the obligation does not apply to anyone who signs up to electronic notifications, the morada única digital or the electronic tax mailbox. Where it is required and you appoint nobody, the fine is €75 to €7,500 under Article 124(1) of the RGIT.
What happens if I miss a Portuguese tax deadline as a non-resident?
Late payment interest accrues from the end of the payment period under Article 44 of the General Tax Law, at 7.221% for 2026 as fixed by Aviso no. 18/2026/2 of 2 January. Once the voluntary payment period closes, a debt certificate is issued under Article 88(1) of the CPPT and serves as the basis for tax enforcement proceedings. Paying within 30 days of being served stops the interest at the date of service.
Sources
- Municipal Property Tax Code (CIMI), Article 120, Articles 8, 112 and 113, and Articles 135-A to 135-H
- Personal Income Tax Code (CIRS), Article 60, Article 72, Article 43, Article 22, Articles 8, 10, 58, 71 and 119
- Law no. 24-D/2022 of 30 December — amendment to Article 43(2) of the CIRS
- General Tax Law, Article 19 and Article 44; Decree-Law no. 44/2022 of 8 July
- RGIT, Article 124; VAT Code, Article 30
- IMT Code, Articles 22 and 36; Stamp Duty Code, Article 44; CPPT, Article 88
- Aviso no. 18/2026/2 of 2 January — late payment interest rate of 7.221% for 2026; Decree-Law no. 73/99, Article 3
- Tax Authority fiscal calendar — payment obligations and filing obligations