IMI season has arrived. And with it, the usual questions.
Why did it go up? Can you pay in installments? How is it calculated? Is there a way to avoid paying?
If you own property in your name, this article is for you.
We’ll explain — clearly and simply — how Portugal’s Municipal Property Tax (IMI) works in 2025: what’s changed, how it’s calculated, who has to pay it, and how to avoid any unpleasant surprises.
What is IMI (and why could it cost you more than you think)?
IMI is an annual tax applied to all properties located in Portugal — whether urban (homes, apartments, shops) or rural (agricultural or forest land).
Who has to pay it?
Anyone — individual or company — who owned, held the usufruct, or held surface rights over the property as of December 31, 2024.
Even if you sell the property in early 2025, the IMI is still your responsibility.
The tax is charged by the Portuguese Tax Authority (AT), but the money goes directly to the local municipality where the property is located — and it's one of the main sources of municipal revenue.
How is IMI calculated?
IMI = Municipal Rate × Taxable Asset Value (VPT)
The VPT (Valor Patrimonial Tributário) is determined by the Tax Office based on a detailed formula:
- Base value per m² (Vc): €665 in 2025
- Total area: includes gross construction area + surplus areas
- Usage coefficient (Ca): varies by purpose (residential, commercial, etc.)
- Location coefficient (Cl): considers surroundings (noise, access, views)
- Quality and comfort coefficient (Cq): quality of construction, finishes, natural light
- Depreciation coefficient (Cv): reflects the property's age (older = greater discount)
Example:
A 2-bedroom apartment with 90 m² in a 2004 building in an average urban area might have a VPT of €115,000.
At a 0.35% tax rate, the annual IMI would be €402.50.
Tip:
If your property is more than two years old and you haven’t requested a revaluation, you could be overpaying. Updating the VPT could reduce your IMI.
IMI 2025 payment deadlines (and why they changed this year)
This year, deadlines were exceptionally delayed due to a technical failure on the Tax Portal after a major power outage across Europe.
New official deadlines:
- By June 30
→ One-time payment (if total ≤ €100)
→ 1st installment (if total > €100)
- By August 31
→ 2nd installment (only for IMI over €500)
- By November 30
→ 2nd installment (for values between €100 and €500)
→ 3rd installment (for values over €500)
You can choose to pay the full amount in the first phase, even if you're eligible for installments.
Payment methods:
- ATM (Multibanco)
- Direct debit
- MBWay
- Tax Portal (with reference or direct payment)
IMI rates vary by municipality:
Municipalities can set their own rate for urban properties. The legal ranges are:
- Urban properties: 0.3% to 0.45%
- Rural properties: fixed rate of 0.8%
In 2025:
- 195 municipalities apply the minimum rate of 0.3%
- 6 municipalities maintain the maximum rate of 0.45%
- 37 municipalities reduced their rate this year — e.g., Vila Nova de Poiares (0.45% → 0.39%)
Check your municipality’s rate on the Tax Portal → “Consultar taxas do município”
Who can get an IMI exemption?
Permanent exemption (low income)
For households with low income and a modest VPT:
- Gross annual household income ≤ €16,824.50
- Property’s VPT ≤ €73,150
- Must be your permanent residence
- Granted automatically if you qualify — no need to apply
Temporary exemption (new homeowners)
For those who recently bought a home and live there permanently:
- VPT ≤ €125,000
- Taxable income ≤ €153,300/year
- Valid for 3 years
- Can be extended for 2 more years if approved by the municipality
- Must be requested — it’s not automatic
Exemption for urban rehabilitation
Applies to properties:
- Over 30 years old or located in Urban Rehabilitation Areas (ARU)
- Underwent works that improved their conservation status by at least two levels
- That meet energy efficiency criteria
Grants a 3-year exemption, renewable up to 5. Apply at the local municipality or via the Tax Portal with supporting documents.
IMI updates: values, deductions, and new rules for 2025
- Base value per m² (Vc) remains at €665 (unchanged since 2023)
- IMI Family has increased deductions:
→ 1 dependent: -€30
→ 2 dependents: -€70
→ 3 or more: -€140 - Vacant properties continue to pay 6× the standard rate
- As of July 2025, Decree-Law No. 49/2025 takes effect:
→ Initial evaluation of urban properties will be initiated by the tax office
→ Owners must submit architectural plans — preferably online
IMI 2025 at a glance:
✔ Check your local IMI rate
✔ See if you qualify for any exemption (permanent, temporary, or rehabilitation)
✔ Activate IMI Family if you have children
✔ Pay by the new deadlines (most by June 30)
✔ Request a revaluation if your VPT seems too high
Want to pay less IMI? We’re here to help.
At BRAVA, we’ll assess your home’s VPT with you, check if it’s outdated, and handle revaluations or exemption requests.
Get in touch to make sure you’re only paying your fair share of IMI.
