Property Tax in Portugal

The property tax in Portugal is called the "Imposto Municipal sobre Imóveis (IMI)". It is an annual tax on property ownership and is paid by owners of land, buildings and other types of property. IMI is a municipal tax, which means that the amount of the tax is set by the respective municipality in which the property is located.

The calculation of IMI is based on the "VPT" (Valor Patrimonial Tributário), which translates roughly as "Taxable Property Value". This value is estimated by the local tax authorities and reflects the market value of the property. The exact formula for calculating IMI can vary, but generally the VPT is multiplied by a certain tax rate to determine the annual tax.

Tax rates may vary from municipality to municipality and may also depend on factors such as the intended use of the property (e.g. residential or commercial). Generally, tax rates for residential properties range from 0.3% to 0.5% of the VPT. For commercial properties, the tax rates may be higher.

It is important to note that in Portugal there may also be an "Adicional ao IMI", an additional tax levied on high value properties. This additional tax is usually 0.7% for properties with a VPT over €1 million.

It is advisable to check with local tax authorities or a subject matter expert to obtain accurate information on the current property tax and any changes, as tax laws and rates can change over time.

Imposto Municipal sobre Imóveis (IMI) Property Tax

Real Estate

Property tax (%)

(Prédios urbano) Municipal buildings, residential properties

0,3 a 0,45%

(Prédios rústicos) Rural buildings, plots of land

0,8%

Buildings owned by entities in tax havens = offshore (other than natural persons) or entities directly or indirectly dominated or controlled by an entity established in a tax haven

7,5%

 

This information has been compiled to the best of our knowledge and is continuously updated, nevertheless it cannot be regarded as a substitute for professional advice. We do not accept any responsibility for possible errors or omissions.