Quick answer: IMI (Imposto Municipal sobre Imóveis — Municipal Property Tax) for the previous year is paid in May when the amount is equal to or less than €100; in two instalments (May and November) when it is between €100 and €500; and in three instalments (May, August and November) when it exceeds €500. AIMI (Adicional ao IMI — Additional Municipal Property Tax) is assessed in June and paid in September, levied on the sum of the tax rateable values (VPT — Valor Patrimonial Tributário) of residential urban properties and building plots above the legal threshold.
If you are reading this in July or August, you likely have an instalment on the way.
Payment calendar
| IMI amount | Instalments | Payment months |
|---|---|---|
| Up to €100 | One instalment | May |
| Between €100 and €500 | Two instalments | May and November |
| Over €500 | Three instalments | May, August and November |
AIMI follows its own schedule: assessment in June, payment in September.
It is possible to pay the entire IMI amount in the first instalment, even if the amount qualifies for payment in instalments. There is no discount for early payment.
How IMI is calculated
The formula is simple: Valor Patrimonial Tributário (VPT — rateable value) × municipal tax rate.
Rates for urban properties range between 0.3% and 0.45%, fixed annually by each municipality and communicated to the Autoridade Tributária (AT — Tax Authority). Rural properties have a set rate of 0.8%.
Vacant properties in areas of urban pressure and ruined buildings may see their rates increased by municipal decision, in some cases very significantly.
Five legitimate ways to reduce IMI
1. Request a revaluation of the Valor Patrimonial Tributário
This is the most effective lever and the least used.
The VPT is calculated using a formula that includes the base construction value, area, usage coefficient, location coefficient, quality and comfort coefficient, and, above all, the age coefficient (coeficiente de vetustez), which reduces the value as the property ages.
The critical point: revaluation is not automatic. If the property has not been evaluated for several years, the applied age coefficient may be outdated.
Any property owner can request a new valuation via the Portal das Finanças (Tax Portal) three years after the last assessment. The request is free of charge when initiated by the taxpayer under certain conditions, and can lead to significant reductions for older properties.
Warning: a revaluation can also increase the VPT, typically if unnotified property improvements were made. Do the maths before submitting.
2. Exemption for primary residence
There is a temporary IMI exemption for properties intended as a primary residence (habitação própria e permanente), subject to income and property value thresholds. The application must be submitted within the statutory deadline following acquisition or designation for this purpose.
Many first-time homebuyers miss out on this benefit simply by failing to apply within the deadline.
3. Family IMI
Municipalities can decide to reduce the IMI rate based on the number of dependents in the household, offering fixed deduction bands per dependent.
Application depends on municipal approval and on accurately updating household composition details with the Autoridade Tributária. It is not automatic in all municipalities.
4. Exemption for rehabilitated buildings and other benefits
Exemptions and reductions are available for urban rehabilitation properties, public interest buildings, properties allocated to affordable residential leasing, and buildings intended for specific activities. Some of these benefits require prior recognition by the municipality or the AT.
5. Correct errors in the property register
Incorrect floor areas, wrong property types, storage rooms misclassified as private gross area, duplicate garages. Errors in the urban property tax record (caderneta predial) are more common than you might think and impact your taxes year after year.
It is worth reviewing your caderneta predial on the Portal das Finanças to verify every detail.
AIMI: who pays and how much
The Adicional ao Imposto Municipal sobre Imóveis applies to the sum of the VPTs of residential urban properties and building plots owned by each taxpayer on 1 January.
Individuals: there is an allowance deducted from the taxable value, with progressive tax bands applying above this threshold. Married couples or de facto partners can opt for joint taxation, doubling the allowance.
Corporate entities: a specific flat rate applies to the total rateable value, with no allowance, alongside special rules for properties held by entities based in preferential tax jurisdictions.
Properties classified as commercial, industrial, or service-use, as well as public utility properties, are excluded from AIMI, among others.
A key note for businesses: AIMI paid can be deductible against IRC (Imposto sobre o Rendimento das Pessoas Coletivas — Corporate Income Tax) liability under certain conditions, namely when properties are leased for residential purposes. It is worth checking your tax position.
What happens if you miss a deadline
Failing to pay an instalment on time carries a specific consequence under IMI rules: all remaining instalments become due immediately, triggering debt collection proceedings (cobrança coerciva) with default interest and legal costs.
If you foresee cash flow difficulties, it is far better to request an instalment plan from the AT before the deadline than to allow the debt to go into tax enforcement.
Frequently asked questions
When is IMI paid in 2026?
In May (amounts up to €100), May and November (between €100 and €500), or May, August and November (over €500).
Can I request a revaluation of my property?
Yes, three years after the last valuation, via the Portal das Finanças.
Who pays AIMI?
Owners of residential urban properties and building plots whose combined VPT exceeds the statutory limit, with different rules applying to individuals and corporate entities.
I missed the primary residence exemption deadline. Can I still claim it?
The exemption requires an application within the statutory deadline. Outside of this period, the benefit may not be granted, so you should review your specific situation.
Is IMI deductible under IRS?
In the case of rental income taxed under Category F of IRS (Imposto sobre o Rendimento de Pessoas Singulares — Personal Income Tax), the IMI paid on the leased property is tax-deductible in accordance with the law.
Need to review the tax position of your property portfolio?
Many property owners overpay IMI for years due to an outdated VPT or errors in the property register. At Grupo Your, we carry out this review and handle the applications directly with the Autoridade Tributária. Get in touch with us.
Related articles:
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- Covilhã to exempt young people up to 35 from IMI for five years on first home purchases
- Sole Traders (Recibos Verdes) and Landlords: Find Out What You Can Deduct in IRS
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