Paying IMI this month? Here are the key rules, deadlines, and exemptions you need to know
May marks the time to pay the Municipal Property Tax (IMI), a fiscal obligation that often raises questions among property owners.
To clarify who is required to pay, how the tax is calculated, and the payment deadlines, Doutor Finanças has put together some practical information to help you better understand this tax.
What is IMI?
IMI is an annual tax applied to property owners in Portugal. The amount payable is based on the Taxable Asset Value (VPT), which is determined by the Tax Authority, rather than the property's market value.
Who is required to pay IMI?
All property owners—whether of houses, garages, or land—are obliged to pay IMI, except in cases where an exemption applies.
How is IMI calculated?
The tax is calculated by multiplying the applicable rate by the VPT of the property. Rates range from 0.3% to 0.45% for urban properties and are set at 0.8% for rural properties. Each municipality sets its own rate within these limits.
What are the payment deadlines and methods?
IMI is paid annually and may be divided into several installments depending on the total amount:
Up to €100: single payment in May;
Between €101 and €500: two installments, in May and November;
Over €500: three installments, in May, August, and November.
Payments can be made via ATM, online banking, at CTT post offices, or directly at Tax Office counters.
Who can benefit from exemptions?
Several situations allow for IMI exemptions, such as:
Purchase of a primary residence with a VPT up to €125,000, provided the household’s gross annual income does not exceed €153,300;
Properties that have undergone rehabilitation works;
Properties under rental contracts signed before 1990, subject to specific application.
To confirm if you qualify for any exemption, check the Tax Authority’s portal or contact your local municipality.