1
Check who is liable
According to the Portuguese Tax Authority, IMI is generally due by whoever is the owner, usufructuary or holder of a surface right on 31 December of the relevant year.
Annual guide for property owners
What IMI is, who pays it and when it must be settled
IMI — Imposto Municipal sobre Imóveis — is Portugal's annual municipal property tax. Unlike IMT, it is not triggered by the purchase itself; it follows ownership, usufruct or surface rights over the property.
This page is aimed at homeowners in Portugal, recent buyers and foreign owners who want a clearer view of when the tax notice arrives, how the annual payment works and when an exemption may apply.
2
Review the tax notice
The annual tax notice is usually made available by the end of April and can be consulted through the Portuguese Tax Portal.
3
Pay within the applicable deadline
The number of installments depends on the total annual amount due.
4
Check whether relief applies
Depending on household income, the property tax value and the use of the property, a permanent or temporary exemption may exist.
Who pays IMI?
According to the official FAQ of the Portuguese Tax Authority, IMI is due by the owner, usufructuary or holder of a surface right on 31 December of the relevant year. In the case of an undivided estate, the estate itself is liable through the head of the estate.When is it paid?
- By 31 May if the annual amount is up to 100 EUR.
- 31 May and 30 November if the annual amount is between 100 EUR and 500 EUR.
- 31 May, 31 August and 30 November if the annual amount exceeds 500 EUR.
The full amount can also be paid at the first stage if preferred.
How do you check and pay it?
You can consult the tax notice through the Portuguese Tax Portal and pay through home banking, ATM reference, MB WAY, direct debit or in person at the Tax Office / Citizen Shop.
In practice, the IMI you pay in a given year usually relates to the previous year.
1
It is not based only on the purchase price
IMI does not work like IMT. The annual amount is linked to the tax value of the property (VPT) and the municipal rate, so two homes bought for the same price may generate different annual tax bills.
2
Municipal rates vary
Each municipality may set its own IMI rate within legal boundaries. Before assuming an annual amount, it helps to confirm both the municipality and the current VPT shown on the property tax record.
3
Foreign owners should follow the process too
If you are non-resident or live outside Portugal for part of the year, it is still important to monitor tax notices, tax residency details, direct debit settings and any available exemption or relief.
IMI is not IMT
IMT is a one-off transfer tax at purchase. IMI is a recurring annual property tax. If you are still in the acquisition phase, read the page on IMT and Stamp Duty as well.
Permanent and temporary IMI exemptions
The public ePortugal service states that a permanent exemption may apply where household income and the global VPT remain within certain limits, and that a temporary exemption may apply in some owner-occupied situations. For 2026, the published guidance refers, among other points, to annual household income up to 17,295.59 EUR and global VPT up to 66,500 EUR for the permanent exemption, as well as VPT up to 125,000 EUR and annual income up to 153,000 EUR for the temporary one.
When a case review may help
If you bought recently, changed the use of the property, have doubts about tax domicile, co-ownership or missed a deadline, it may be worth reviewing the situation before assuming that no relief or correction is possible.
Purchase costs vs annual costs
Are you comparing purchase taxes with the ongoing tax cost of ownership?
Most buyers focus first on IMT and Stamp Duty. After completion, however, the recurring tax issue becomes IMI. Understanding the difference early helps you budget better and avoid confusion after the deed is signed.
- Before completion
Use the calculator to estimate IMT and Stamp Duty before signing. - After completion
Track IMI to understand the annual tax cost of owning the property in Portugal. - Special cases
Reliefs, VPT, owner-occupation and tax domicile can all affect the final position.
Frequently asked questions about IMI
What is IMI in Portugal?
IMI is the annual municipal property tax in Portugal. It applies to ownership, usufruct or surface rights over property and is charged on a recurring yearly basis.
When do you pay IMI?
The deadline depends on the annual amount due: by 31 May if it is up to 100 EUR; in May and November if it falls between 100 EUR and 500 EUR; and in May, August and November if it is above 500 EUR.
Who pays IMI if I bought a property recently?
As a general rule, IMI is due by whoever is the owner, usufructuary or holder of a surface right on 31 December of the relevant year. The timing of the purchase therefore matters.
What is the difference between IMI and IMT?
IMT is the transfer tax paid on acquisition. IMI is the annual tax linked to property ownership. They are separate taxes with different triggers and payment moments.
Can I be exempt from IMI?
Yes, in some situations. The ePortugal public guidance refers to both permanent and temporary exemptions, depending on factors such as household income, the property tax value, owner-occupation and compliance with the applicable legal requirements.