IMI and IMT, Simplified

Two taxes, two moments

Portuguese property is taxed twice: once when you buy (IMT, a one-off transfer tax) and every year you own (IMI, an annual property tax). On top, owners with large portfolios pay a third surcharge (AIMI). Each is calculated on the VPT (valor patrimonial tributário) — the tax authority's own valuation of the property, which is usually well below market price.

IMT (transfer tax) — one-off

Paid once, at or just before the escritura. It's a sliding-scale tax on the higher of the purchase price or the VPT.

• Up to ~€104,000 of value: 0% (for primary home), 1% (other urban property)
• €104k–€170k: 2%
• €170k–€235k: 5%
• €235k–€396k: 7%
• €396k–€706k: 8%
• €706k+: flat 6% then 7.5% on the slice above ~€1.1m

IMI (annual property tax)

Paid every year by whoever owns the property on 31 December. Rate is set annually by your município (typically 0.3–0.45% of VPT for urban property; rural is lower).

• Bills under €100: a single payment in May
• €100–€500: split between May and November
• Over €500: three instalments (May, August, November)
• Pay by direct debit or Multibanco reference; late payment adds 4.7%/year interest

AIMI (the 'rich-house' surcharge)

Owners with combined urban-property VPT above €600,000 pay an additional 0.7–1.5% per year on the excess. Married couples can elect joint filing to share a €1.2m threshold. Rare for first-time buyers; common for landlords with multiple units and for high-end primary homes.

How VPT is set (and re-set)

VPT is reassessed every 3 years based on construction cost, location coefficients, age and use. Renovations and changes of use (e.g., commercial → residential) trigger a reassessment. If you renovate, expect VPT to rise — and IMI with it.

Exemptions worth knowing

A few situations cut IMI to zero for several years.

• Primary residence under €125,000 VPT and household income under €153,000: 3-year exemption (extendable to 5 in some cases)
• Buildings under urban rehabilitation: typically 3 years exempt, sometimes longer
• Properties classified as historical monuments: full exemption