What is IMI tax in Portugal?

IMI stands for "Imposto Municipal sobre Imóveis", which translates to Municipal Property Tax in English. It is a property tax levied on real estate properties in Portugal. IMI is imposed annually on the rateable value of properties and is collected by local municipalities.

The tax rate can vary depending on municipalities and on factors such as:

- the property's location

- type (habitation, commerce, services, etc)

- construction year 

- property rateable value (VPT calculated by the Tax department) 

After rising by 25 euros in 2023, the amount will remain unchanged this year. When it comes to IMI in Portugal in 2024, the price of a square metre (m2) for the purposes of calculating Municipal Property Tax and the tax assessment of real estate will remain at 665 euros/m2, according to an order published in the Diário da República (Portugal's Official Gazette).

"The Municipal Property Tax Code, approved by Decree-Law no. 287/2003 of 12th November, establishes in articles 38 and 39 that one of the objective elements included in the calculation formula of the urban property valuation system is the average construction value per square metre. This decree keeps in force the values applied during 2023," the document reads.

The price per square metre of construction is one of the elements that make up the formula for calculating the valuation system for urban buildings and, consequently, for determining their taxable asset value (VTP), on which the IMI rate is levied. 

The price per square metre of construction is set annually by government decree, on a proposal from the National Commission for the Valuation of Urban Buildings (CNAPU).

Although it is one of the elements that contribute to determining the VPT (property rateable value) of properties, this price is not automatically applied and is only reflected in new constructions or in properties that have been modified or rebuilt or following a new valuation, i.e. it applies to urban buildings whose "Model 1" declarations are submitted to the tax department after 1st January 2024.

To find out the value of the rates in each municipality, taxpayers can consult the data already published on Portugal's Portal das Finanças, while IMI tax calculators can be easily found online. (unfortunately it´s availale only in portuguese)

Also, you can find the percentage used to calculate IMI based on the location coefficient of your property. You can find out by visiting this ZONE MAP from the finance’s portal. (unfortunately it´s availale only in portuguese)

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