What is IMI, and when do I have to pay it?

What is IMI?

It is the municipal tax on homes and land («imposto municipal sobre imóveis»). It is a yearly tax, and the money goes to the council where the home is.

Whoever owns the home on 31 December of the tax year pays it. It does not depend on having a mortgage: you pay it with or without a loan.

How is it worked out?

The home's taxable value (VPT) is multiplied by the council's rate.

• The taxable value is the value of the home for tax purposes. It is on the tax record of the home («caderneta predial»). It is not the purchase price.
• For homes, the rate is 0.3% to 0.45%. Each council sets its own, every year.
• For homes left empty for more than a year, the rate is tripled.

When is it paid?

The following year, depending on the amount:

• up to €100: in one payment, in May;
• €100 to €500: in two payments, in May and November;
• above €500: in three payments, in May, August and November.

If you miss a payment, the remaining ones fall due straight away.

An example with the sums

Your home has a taxable value of €150,000. The council applies 0.35%. IMI is €525 a year, because 150,000 × 0.35% = 525.

As it is above €500, you pay in three payments: in May, August and November. In your budget, count on about €44 a month. These are example figures.

I bought mid-year. Who pays?

Whoever owns the home on 31 December. If you buy in March 2026, you are the owner on 31 December. You pay the 2026 IMI in 2027.

If you sell in October, you do not pay that year's IMI. The buyer does.

Can I pay less?

• If it is the home you live in, you may be exempt for 3 years, with value and income limits.
• If your council approves it, there is a reduction for dependants: €30 for one, €70 for two and €140 for three or more.
• There is also an automatic exemption for low incomes.

See the guide Is there an IMI exemption for people buying a home?

How does it fit into the home budget?

IMI is a yearly cost, like condominium fees and insurance. Add it to the repayment when you plan the purchase. See What are condominium fees?

Where FINOVA helps

We include IMI in the home's costs, next to the repayment and insurance. In the home purchase simulator you can see how much you can borrow.

Sources

• Tax Authority — IMI Code, article 8 (in Portuguese)
• Tax Authority — IMI Code, article 112 (in Portuguese)
• Tax Authority — IMI Code, article 112-A (in Portuguese)
• Tax Authority — IMI Code, article 120 (in Portuguese)
• Todos Contam — Buying a home (in Portuguese)

Sources checked on 22 September 2026.