IMI: How It Is Calculated, Step by Step
Complete guide to the annual Municipal Property Tax (IMI) in Portugal. How to calculate it, municipal rates, and who is exempt in 2026.
The Municipal Property Tax (IMI — Imposto Municipal sobre Imóveis) is an annual tax levied on the ownership of property in Portugal. It is paid once a year, usually between April and November depending on the amount.
What is IMI based on?
IMI is calculated on the VPT (Valor Patrimonial Tributário — Taxable Property Value), which is the fiscal value attributed to the property by the Tax Authority (AT). This is usually lower than the market value.
The formula
IMI = VPT × Municipal rateRates for 2026
| Property type | Rate range |
|---|---|
| Urban property | 0.3% – 0.45% |
| Rural property | 0.8% |
| Urban property in urban pressure zones | Up to 0.5% |
Each of the 308 municipalities in Portugal sets its own rate within these bands. Use the IMI calculator to look up your municipality’s exact rate.
Worked example
Urban property in Lisbon, VPT = €180,000, rate = 0.3%:
IMI = €180,000 × 0.3% = €540/yearFirst-home exemption
If the property is your primary residence and:
- VPT ≤ €125,000
- Household gross income ≤ €153,300
You benefit from a 3-year temporary exemption from the year of acquisition (Law No. 7-A/2016). After 3 years, IMI applies normally.
Family deduction
Owners with 3 or more dependants receive a deduction on top of the municipal rate. This is applied automatically based on your household composition declared to AT.
Vacant property penalty
Properties classified as vacant (devolutos) pay IMI at 3× the normal rate. In urban pressure zones this can go up to 6×.
Source: IMI Code (CIMI), art. 112. Municipal rates published by AT for 2026. First-home exemption: Law No. 7-A/2016. Verified for 2026.