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Your Complete Guide to Property Taxes in Portugal

Dreaming of owning a charming villa on the Algarve coast or a modern apartment in the capital of Lisbon? Portugal’s vibrant cities, picturesque villages, and stunning scenery make it a top destination for property ownership.

But before you take the plunge, it’s crucial to understand each tax liability that comes with property ownership in Portugal. This comprehensive guide will equip you with all the essential information on property taxes in Portugal. Whether you plan to make it your primary residence, a holiday getaway, or a lucrative investment property, we’ll share everything you need to know about Portugal property taxes.

Understanding Property Taxes in Portugal

Property owners in Portugal are required to pay taxes, regardless of their residency status. As exciting as the real estate purchase journey is, understanding Portuguese property taxes is also a vital part of the process.

In the sections below, we’ll equip you with the essential knowledge you need to register and pay taxes in Portugal. We will provide a brief overview of property taxes for foreigners, the essentials of tax registration in Portugal, and the necessity of fiscal representation for non-EU citizens.

An overview of property taxes in Portugal for foreigners

When purchasing property in Portugal, besides Notary fees and administrative costs, specific taxes must be paid. These include the Property Transfer Tax (IMT), the Stamp Duty known as Imposto de Selo (IS), and annual taxes after the purchase like the Municipal Property Tax, also known as Immovable Property Tax (IMI). Understanding how each is calculated is crucial for budgeting your Portuguese real estate transaction.

Working with local experts

When buying property in Portugal, it is recommended that you acquire the assistance of a real estate agent, tax expert, and a real estate lawyer. Local property experts will be able to help you navigate the buying process and ensure that you understand the legal intricacies of the purchase.

Essentials for registering for taxes in Portugal

Essential to registering on the Portuguese tax system and navigating tax matters is obtaining a NIF (Número de Identificação Fiscal or Número de Contribuinte) from the local tax office, Finanças. The NIF will serve as your tax identification number required for financial transactions within the country, including purchasing property and applying for bank mortgages.

Opening a bank account in Portugal

While it is not mandatory, opening a Portuguese bank account is also recommended, as this can streamline the process by reducing transaction fees. Depending on the Portuguese bank, you will require the documents listed below for the application:

Valid proof of ID (passport)
Proof of address no older than three months (recent utility bill or letter with your name and address visible)
NIF
Proof of income or employment (a letter of employment, pay slip, or registration with a Portuguese employment center)
A minimum cash deposit of €200 to €300 (bank dependent)
Some banks may also require that you have a Portuguese phone number for SMS activation (although this may not be required and will depend on the bank)

Do I need fiscal representation in Portugal?

If you are a non-EU resident, you will need to have a tax representative. They will be able to assist you with any dealings you have with the Portuguese Tax Authorities, help you understand and navigate the process, and help with your tax department correspondence if there is a language barrier.

Property Taxes and Fees During the Purchase Process

Besides the high quality of life and the possibility of making a profitable Portuguese real estate investment, life in Portugal offers several key advantages. These include no restrictions on non-EU citizens considering renting or buying property in Portugal, a low cost of living compared to other European countries, and a dynamic and diverse property market. Below, we will explore the fees and tax obligations that you will be responsible for at the time of purchase when buying property in Portugal.

Property Purchase Tax (IMT)

The Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) (Municipal Tax on Onerous Transmissions of Real Estate) is a property transfer tax levied over the purchase price of property in Portugal that property owners must pay.

The IMT tax rate ranges from 0-10 percent and they fall into two categories. The first category consists of the 0-8 percent range, which depends on the price, location, property types, and the intended purpose (whether you plan to make your Portuguese property your permanent residence or secondary housing). The second category consists of the fixed rate of 10 percent, which applies in cases where the buyer has connections with territories benefiting from favorable taxation schemes, referred to as blacklisted jurisdictions.

The following criteria are essential to calculating IMT Tax:

Type of property: Urban property or rural property
Buying purpose: Principal or secondary residence
House location: Mainland Portugal or its autonomous regions
Blacklisted jurisdictions: Whether the property owner has connections with territories that benefit from favorable taxation schemes

You can make use of Goldcrest’s Portugal Property Tax Calculator and you can use the following formula to work out the Portugal IMT tax rate:

IMT = property value x tax rate x tax deduction

An overview of unique IMT circumstances and tax rates

Unique rates apply to different IMT Tax circumstances. We explore these different IMT rates below:

5 percent IMT: A flat rate for agricultural and rustic lands (these lands cannot be designated for construction purposes and can’t be utilized or intended for generating agricultural, forestry, or livestock income. Land situated in an urban area may also be considered rustic if not designated for construction and does not serve an income-generating purpose)
6.5 percent IMT: A flat rate for commercial and building plots (includes buildings or autonomous units intended for commerce, industry, or services, and land licensed for construction)
10 percent IMT: Property acquired by a corporation based in a jurisdiction that is on a blacklist. Blacklisted jurisdictions are territories with favorable taxation schemes that the property owner has connections to and benefits from.

IMT property tax exemptions and refunds in Portugal

If you are using the property for your own permanent housing, then you do not pay any IMT tax if the property is located on Portugal’s mainland and its price does not exceed €101,917 in 2024.

In addition to this, IMT Tax is not due if the property is located on the autonomous territories of the Azores and Madeira in Portugal, if the property is for your own permanent housing, and is worth less than €127,396.

An IMT Tax exemption may be requested if you intend to use the property as your sole permanent residence and if your property is in a rehabilitation area. However, the work for applying for this exemption must be done within a deadline. The only case for a refund is when purchasing property for resale. It’s important to note that the request can also be made earlier, and it may be an exemption instead of a refund.

Tax exemptions also cover several entities and individual situations. Portuguese law provides for exemptions established in agreements between the state and public or private entities. Legal entities with public utility status, social solidarity institutions and similar entities also benefit from the exemption for goods intended to achieve their statutory objectives.

In the sections below, we explore IMT Tax exemptions for entities and in specific situations, as well as exemptions for individuals

IMT Tax exemptions for entities and in specific situations

In addition to the examples given above, it’s important to highlight various instances where Property Transfer Tax (IMT) exemptions are applicable. First, we will explore the instances where IMT exemptions apply for entities.

Business Operations

During entity mergers or splits, an IMT exemption may apply to both non-residential and residential properties that are linked to the business’s main activity and if these properties are crucial for restructuring or cooperation agreements.

Government entities and public bodies

Tax exemptions are also available for government entities and public bodies such as the state, autonomous regions, local authorities, associations, federations of municipalities, and their public bodies without a business nature.

Foreign states

When acquiring buildings for the headquarters of diplomatic or consular missions and residences for heads of missions, foreign states are exempt from IMT if there is a reciprocal agreement.

State and public or private entity agreements

Exemptions are also granted in cases where there are agreements between the State and public or private entities.

Legal entities with public utility status

Legal entities with public utility status, social solidarity institutions, and similar entities also receive exemptions for goods intended to achieve their statutory objectives.

Religious legal entities

Registered religious legal entities receive exemptions on acquisitions of goods for religious purposes.

Buildings of national, public, or municipal interest

National, public, or municipal buildings are exempt from IMT.

Economically disadvantaged regions

Commercial companies that acquire goods for agricultural or industrial activities that will be economically and socially relevant in economically disadvantaged regions are exempt.

Physical culture associations

Physical culture associations are exempt if the property acquired will not be used for paid shows.

Educational and cultural entities

Museums, libraries, schools, educational, and cultural entities are exempt from IMT Tax if the real estate acquired fulfills their statutory purposes.

Real estate investment funds

Government entities with real estate investment funds are exempt from IMT Tax if the assets acquired are intended to fulfill their statutory purposes.

Credit institutions and related companies

Credit institutions in execution, bankruptcy, or insolvency proceedings, and commercial companies whose capital is dominated by these institutions do not need to pay IMT.

Property tax exemptions for individuals

In the sections below, we will explore the instances where IMT exemptions apply to individuals.

Young adults under 35

From1 August 2024, individuals under 35 may be exempt from IMT when buying their first permanent home. A total exemption up to Є316,772 and partial exemption for properties valued between Є316,772 and Є633,453 will be offered regardless of the individual’s income.

Primary residence purchase

In 2024, individuals purchasing urban properties as their sole and permanent residence are exempt from IMT if the property value does not exceed Є101,917 in mainland Portugal and Є127,396 in the Azores and Madeira.

Resale properties

Buyers who purchase property for resale can benefit from IMT exemption if the property is resold within one year and not resold again within that period.

Rental support program properties

The Rental Support Program in Portugal and Properties purchased, rehabilitated, or built for the program are exempt from IMT.

Rehabilitation works

If renovation works commence within three years of acquisition, urban properties over 30 years old or located in urban rehabilitation areas may be exempt from IMT.

Young farmers and forestry activities

Purchases of rustic properties in Forest Intervention Zones are exempt from IMT Tax as well as young farmers acquiring rustic buildings for their first agricultural venture.

Stamp Duty

The Imposto do Selo, also referred to as Stamp Duty, is an additional transaction cost required of you when purchasing residential properties. The buyer must pay Stamp Duty on title deeds, contracts, bank mortgages, and loans. Securities that are subject to Stamp Duty also include bills of exchange and promissory notes, although these are not typical instruments for property acquisition.

The Stamp Duty amount you pay depends on the property’s worth and is levied on whichever value is higher between the value of the business or the value of the property. The Stamp Duty rate for buying a property in Portugal is 0.8 percent. For transactions on donated properties, the Stamp Duty for the transaction is10 percent of the value of the business or the value of the property.

Depending on the Stamp Duty Code, you will also need to pay Stamp Duty when you take out bank mortgages valued at over €5,000. Stamp Duty on mortgage loans is levied as follows:

Credit with a term of less than one year – for each month or fraction: 0.04 percent
Credit with a term equal to or greater than one year: 0.5 percent
Credit with a term equal to or greater than five years: 0.6 percent

Notary fees

Not to be confused with taxes, factor in Notary fees. A Notary, a private entity, will provide the official documents confirming your property ownership. Expect this fee to be between €500 and €1,000.

Agency fees

While collaborating with a real estate agency isn’t mandatory, it’s recommended for international investors in Portugal. This fee reflects the various services provided, including sharing it with external parties and covering the agency’s accreditation and insurance.

Keep in mind that this is the maximum you’ll pay, though luxury property specialists may charge up to 6 percent (plus VAT). When negotiating the property price, make sure you get a second opinion from a trusted advisor. This is because the seller’s real estate agency will get a higher commission for a higher sale. Considering this, working with a buyer’s agent like Goldcrest who will have your best interests in mind as the buyer can prove to be beneficial.

Property Taxes and Fees After the Purchase

Once you have finalized the purchase of your new Portuguese haven, new property owners need to be aware of real estate taxes. These include the annual Municipal Property Tax, Capital Gains Tax if you choose to sell the property, and more, which will be explored in detail below.

Immovable Property Tax (IMI) or Municipal Property Tax

The Imposto Municipal sobre Imóveis (IMI) (Municipal Property Tax or Immovable Property Tax) is an annual tax that property owners in Portugal are required to pay. Each municipality has the power to decide what Municipal Property Tax (IMI) rate they will apply to properties within their jurisdiction, within the limits stipulated by the Portuguese government. The IMI is levied on the Property Tax Value (VPT), not on the price you paid for the property.

Every three years, the VPT is automatically updated based on 75 percent of the currency devaluation coefficients. This is generally reflected in the increase in property value, as the automatic evaluation does not consider aspects that may imply a reduction in value, such as the aging coefficient. Property owners can request a reassessment of their property’s value for IMI purposes outside of the time frame for these automatic reviews.

Generally, the Immovable Property Tax ranges from 0.3 to 0.45 percent of the Property Tax Value (VPT) for urban properties. The range can also go up to 0.5 percent in some instances. The IMI rate applied for rural properties is 0.8 percent, and IMI is paid annually. There could be additional penalties on properties not in use, and the local authority can also apply the nominal family discount indexed to the number of children.

The newly implemented Mais Habitação program allows local authorities to penalize owners of vacant or abandoned buildings with a higher IMI rate. In the case of properties located in areas of urban pressure, the tax payable can be increased by ten times and can be penalized by 20 percent each year. In the case of rustic buildings, the rate to be applied, instead of the usual 0.8 percent, can reach 2.4 percent. This is, again, in the hands of the local authorities to decide on the amount to charge.

Portuguese municipalities receive funding from the property tax, which is also used to maintain public facilities. When you own the property on the last day of the applicable tax year, you are responsible for paying the IMI tax. The value of the tax asset (TPV) must be multiplied by the relevant rate to determine the IMI tax. Depending on the assessed value of the IMI, payment can be made in the following installments:

If the total tax amount is up to €100, the full payment is due by the end of May
For amounts exceeding €100 but not surpassing €50, payment can be divided into two installments in May and November
Amounts exceeding €500 allow for payment in three installments in May, August, and November

It’s important to note that, depending on the total amount owed, property owners have the option to pay the full IMI amount owed in May or choose to make installment payments. However, property owners who only owe up to €100 in IMI Tax are not given the option of paying in installments and must pay the full amount owed in May.

Exemptions on IMI Tax

There are two categories for exemption from IMI Tax. The first is a permanent exemption from paying IMI Tax which is automatically applied for families with limited income and assets of low value. The second way an exemption from IMI Tax is possible is through temporary exemptions, which are available if the property owner finds themselves in one of the following two scenarios.

Firstly, new property owners, specifically those who have recently acquired their primary residence, are exempt from paying IMI Tax. This exemption spans three years, provided that the property’s Taxable Asset Value (VPT) does not exceed €125,000 and the household’s annual taxable income remains under €153,300.

Secondly, rehabilitation projects also qualify for a temporary IMI exemption of three years. If the property is over 30 years old or is situated in an urban area earmarked for revitalization, local authorities must acknowledge the intent to rehabilitate the property according to specific regulations. Upon approval, this benefit can be renewed every three years, offering an additional five-year exemption period.

Other expenses for property maintenance in Portugal

When considering property maintenance expenses in Portugal, it’s essential to account for various costs beyond the initial purchase. Property management and rental services can be invaluable for properties owned by foreign investors seeking convenience and peace of mind. Whether your property serves as a second home or an investment for holiday rentals, you can delegate tasks and alleviate burdens. Utility bills, contingent upon property size, construction materials, occupancy, and daily usage, constitute a significant ongoing expense.

Additionally, securing home insurance is prudent to safeguard your investment against unforeseen events. In Portugal, insurance premiums depend on factors such as property type, location, and value. For those overwhelmed by administrative tasks, hiring a property manager can streamline processes and alleviate language barriers.

Rental Income Tax

If you plan to rent out your property, there are specific taxes to consider. Rental income from housing is taxed at 25 percent, while other types of rental income are taxed at 28 percent.

The applicable tax rate, 25 percent or 28 percent, depends on the purpose of the rental agreement. Although these rates may occasionally change slightly, they will usually fall within this range.

Additionally, it’s important to note that the 25 percent tax rate applies to long-term rental income from 2023 (for the entire year of 2023), following the Mais Habitação package enacted in October 2023.

Under the terms of the Mais Habitação package, the 25 percent rate can be reduced based on the duration of the rental contract if the monthly income does not exceed the general income price limits by 50 percent. If your monthly rental income does not exceed the limit, the 25 percent rate can be reduced as follows:

25 percent for a duration of 2 to 5 years
15 percent for a duration of 5 to 10 years
10 percent for a duration of 10 to 20 years
5 percent for a duration of more than 20 years
Note that there are possible tax exemptions on rental income in the following cases where rental income:
Is derived from contracts included in the Lease Support Program
Is obtained through accommodation for displaced students and does not exceed the maximum affordable rental limits
Is derived from rental contracts signed before 1990
Is derived from properties previously used for local accommodation. This exemption applies to rents until the end of 2029 and must meet two conditions. Firstly, the local accommodation establishment must have been registered and used for this purpose by 31 December 2022. Secondly, the lease contract and registration with Finanças (Finances) must take place by 31 December 2024.

Landlords may also deduct the expenses incurred in the process of obtaining and guaranteeing the rental income from the amounts of rent received. Maintenance and upkeep expenses that are documented can include:

Deductions for eligible insurance
Expenses such as the IMI
Condominium fees (if applicable)
Stamp Duty
Municipal taxes
Interior and exterior painting

You will need to present an invoice identifying the work carried out on the property and its location so you can receive deductions from tax on rental income. There are specific differences between short and long-term rentals.

Additional to IMI (AIMI)

Owners of shares in Portuguese real estate with a value of more than €600,000 are subject to the additional property tax AIMI.

AIMI is charged on real estate assets that are held by natural or legal Portuguese residents who own property that has a high Tax Asset Value (VPT).

An individual who owns the property is eligible for a €600,000 allowance. This means that you will be exempt from AIMI. Couples who own a home together are taxed jointly, which means if you and your partner jointly own a home in Portugal and the property is valued at more than €1.2 million, AIMI tax will apply.

AIMI can be calculated as follows:

0.7 percent tax on owning property valued between €600,001 and €1 million
1 percent tax on property valued between €1mil and €2 million
1.5 percent tax on property if its total value is above €2 million

Capital Gains Tax

In Portugal, the Capital Gains Tax intricately weaves through various factors, shaping its impact on property transactions. Portuguese Capital Gains Tax on real estate is based on the real estate added value, which is the amount obtained by subtracting it from the property’s sale value.

Capital Gains Tax for non-residents

Capital Gains Tax in Portugal is calculated based on ownership structure, residency status, and the property’s role – whether it serves as a primary residence or secondary housing. The tax rate is 28 percent for non-residents.

Non-Portuguese residents are taxed in the whole gain on the sale of a property at the flat rate of 28 percent. For taxation to take effect, the property owner must disclose the property’s purchase details, including any renovations, along with invoices serving as evidence for capital gains assessment.

Capital Gains Tax for Portuguese residents

For Portuguese residents, real estate acquired post-1989 will be subject to tax ranging from 14.5 percent to 48 percent, dependent upon income brackets. Crucially, the disclosure of the property’s purchase details, including any renovations, is obligatory, with invoices serving as evidence for capital gains assessment.

For Portuguese residents, the tax on capital gains is only levied on 50 percent of this added value resulting from the acquisition value and the sale value. The Capital Gains Tax rate is applied to this result.

However, the time between acquisition and sale, and other factors which trigger the application of different coefficients, are considered. The final value of the capital gain is subject to progressive IRS rates, so the specifically applicable rate will depend on the total income that each subject has (only considering those that are subject to tax in Portugal). Once all real estate profits have been added to your other yearly income, taxation will take effect and the rate will range from 14.5 percent to 48 percent.

The property owner must disclose the tax return, the year the house was bought, and the price paid to acquire it. If work was carried out on the property, this should be declared, including works such as installing a new heating system. Present the invoices and the amounts paid for the maintenance, and they will be considered in the capital gains assessment.

An important note is that if you are reinvesting your total selling price into a new home, then the potential capital gain may not be subject to tax. However, this is only applicable if the house that you are selling is your permanent residence address and if it corresponds with your tax address.

The time period is also essential—you must purchase a new house and reinvest the total selling price 24 months before such a sale or 36 months after the sale. If this is followed, the owner informs the Portuguese Tax Authorities of their intention to reinvest back into the property market in Portugal.

Deductions to Capital Gains Tax

Some costs can also be deducted from this amount, which include:

The request for the energy certificate
The IMT
The commission paid to the real estate agency
Solicitor costs
The deeds

Charges for the appreciation of the property – for maintenance and conservation works, in order to increase the value of the property carried out in the previous 12 years and that are duly documented

Inheritance Tax

There is no inheritance tax in Portugal. Nonetheless, Stamp Duty (at a rate of 10 percent) is applicable on the assets considered to be in the Portuguese territory passed on as inheritance. An exemption to the Stamp Duty applies whenever such inheritance is passed on to spouses, descendants, and ascendants.

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Frequently Asked Questions About Property Taxes in Portugal

What taxes do you pay when buying a property in Portugal?

Property owners should be aware of the real estate taxes owed at the time of purchase and annually. The property taxes before the purchase include the Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) (Municipal Tax on Onerous Transmissions of Real Estate), which is the property transfer tax. The Stamp Duty will also need to be paid at this time.

The property taxes you will need to pay after the purchase include the annual municipal property tax (IMI) and the AIMI Tax which is an additional tax charged if the property you own is valued at over €600,000.

Note that the Capital Gains Tax is crucial if you are looking to gain profit from a property sale. If you are renting property, you will also need to pay tax on your rental income, generally at a flat tax rate of 28 percent.

Is it worth buying property in Portugal?

Yes, Portugal offers a high quality of life and presents a profitable opportunity for real estate investment. Plus, there are no restrictions on non-EU citizens regarding property rental or purchase, making it an attractive option for international buyers. Portugal also has a relatively low cost of living in comparison to other European nations. You can discover more in our insights for buying property in Portugal 2024 guide.

What are the taxes for foreigners in Portugal?

Foreigners residing in Portugal for more than 183 days or owning a permanent residence are considered Portuguese taxpayers. Non-residents face a flat income tax rate of 25 percent on all earnings, translating to €12,500 owed on a €50,000 income in 2023. Additionally, the income tax scale rates ranged from 14.5 to 48 percent in 2023.

Certain incomes, like capital gains from share sales, might be exempt. Portuguese residents are taxed progressively on worldwide income, whereas non-residents are taxed solely on Portuguese earnings, usually at a fixed rate.

Is there inheritance tax on property in Portugal?

There is no inheritance tax in Portugal. However, property transferred through inheritance within Portuguese territory is subject to Stamp Duty, set at 10 percent.

What residency options are open to move to Portugal?

If you are interested in moving to Portugal, the Portuguese government offers a selection of visa and residency options. These options include the Portugal Golden Visa program for investors and their families, the D7 Visa for retirees and those earning a passive income looking to settle in this scenic country, the Digital Nomads Visa, and the D3 Work Visa for highly skilled workers. Discover more from our migration and residency partner, Global Citizen Solutions.

How much is rental income tax in Portugal?

When renting out your property, there are specific taxes to consider. Rental income from housing is taxed at 25 percent, while other types of rental income are taxed at 28 percent. The applicable tax rate—either 25 percent or 28 percent—depends on the rental agreement’s purpose. Although these rates may occasionally vary slightly, they will always fall within this range.

What are the tax benefits of buying property in Portugal?

You will still need to pay taxes on property in Portugal, both at the time of purchase and on an annual basis. Ensure you are up to speed with Portugal’s tax system.

What are the deadlines for paying property taxes in Portugal?

According to the Portuguese government, the 2024 deadlines for property taxes in Portugal for foreigners and citizens announced by the Portuguese tax system are as follows:

31 May: First property tax (IMI) installment due.
31 June: Last day to submit personal income (IRS) statement.
31 August: Second property tax (IMI) installment due (for amounts exceeding €500).
30 November: Second property tax (IMI) installment due (for amounts below €500).
30 November: Third property tax (IMI) installment due (for amounts exceeding €500).

How much tax do you pay when selling a property in Portugal?

The tax system imposes a 28 percent flat rate on gains for non-residents when selling a property in Portugal. Residents selling real estate acquired post-1989 face a range of taxation, from 14.5 percent to 48 percent, depending on income brackets.

What is IMT tax in Portugal?

IMT Tax, also known as the Municipal Tax on Onerous Transmissions of Real Estate, is applied to property purchases in Portugal. Similar to the UK’s Council Tax, it ranges from 0 to 10 percent and falls into two categories. The first category consists of the 0-8 percent range, which depends on the price, location, property types, and the intended purpose (whether you plan to make your Portuguese property your permanent residence or secondary housing).

The second category consists of the fixed rate of 10 percent which applies in cases where the buyer has connections with territories benefiting from favorable taxation schemes, referred to as blacklisted jurisdictions.

How to pay property tax in Portugal?

Residents can pay property tax in Portugal through various channels including local tax offices, post offices, or multi-bank ATMs.

How do non-residents pay property tax in Portugal?

Non-residents pay property tax in Portugal through various channels. Payments can be made at local tax offices, post offices, or multi-bank ATMs. For those residing outside Portugal, tax payments can be processed through the tax authority’s online portal or via online banking using a Portuguese bank account.

How is property tax calculated in Portugal?

The property purchase tax (IMT) amount charged is levied over the purchase price. Note that this is also referred to as the property transfer tax in Portugal. You can use the following sum to work out the Portugal tax rate:

IMT = property value x tax rate x tax deduction

The following criteria are essential to calculating the property purchase tax (IMT):

Type of property: Urban property or rural property
Buying purpose: Principal or secondary residence
House location: Mainland Portugal or its autonomous regions
Blacklisted jurisdictions: Whether the property owner has connections with territories that benefit from favorable taxation schemes

Are there any exemptions from IMI in Portugal?

Property owners in Portugal can benefit from IMI exemptions under specific circumstances. There are two categories for exemption from IMI Tax. The first is a permanent exemption from paying IMI Tax which is automatically applied for families with limited income and assets of low value. The second way an exemption from IMI Tax is possible is through temporary exemptions, which are available if the property owner finds themselves in one of the following two scenarios.

What is AIMI (Adicional ao Imposto Municipal Sobre Imóveis), and who is subject to it?

AIMI is Portugal’s additional tax which applies to owners of shares in Portuguese real estate with a value of more than €600,001. Couples who own a home together are taxed jointly, which means if you and your partner jointly own a home in Portugal and the property is valued at more than €1.2 million, AIMI tax will apply.