Simulator - Municipal Property Tax
Municipal Property Tax can be a worry, but it doesn't have to be a mystery. With our Municipal Property Tax simulator, easily calculate the amount you'll have to pay and plan your finances in advance.
The simulator was updated in March 2026.
What Is IMI?
IMI (Municipal Property Tax) is an annual tax paid by property owners in Portugal.
The amount of tax due is calculated based on the property's Taxable Asset Value (VPT) and the IMI rate set by the municipality in which the property is located.
The revenue generated through IMI is used by municipalities to fund local public services, infrastructure and community facilities.
How Should You Interpret the Simulator Results?
The Maxfinance IMI Simulator provides an estimate of the annual IMI payable based on the information entered.
In addition to calculating the tax amount, the simulator automatically assesses situations that may reduce or eliminate the amount due, including permanent exemptions for low-income households and IMI reductions for dependants, where applicable.
This allows you to obtain an estimate that more closely reflects the amount potentially payable and helps identify tax benefits that may reduce the annual cost associated with owning the property.
IMI Benefits and Exemptions
Can I Save on IMI?
In certain circumstances, the amount of IMI payable may be reduced or even eliminated through tax reliefs provided for under Portuguese legislation.
Permanent IMI Exemption for Low-Income Households
Some households may qualify for a permanent IMI exemption if they meet specific income and asset criteria.
To qualify for this exemption:
- The household's annual gross income must not exceed 2.3 times the annual IAS amount. In 2026, this threshold is €17,295.58.
- The combined Taxable Asset Value (VPT) of all properties owned by the household must not exceed 10 times the annual IAS amount. In 2026, this threshold is €75,198.20.
Where these conditions are met, the exemption is generally granted automatically by the Portuguese Tax Authority, with no application required.
The Maxfinance simulator assesses this situation and indicates when you may be eligible for this exemption.
Temporary IMI Exemption for an Owner-Occupied Primary Residence
Purchasing an owner-occupied primary residence may entitle you to a temporary IMI exemption.
This tax relief is intended to support families purchasing their main home and may result in significant savings during the first few years after acquiring the property.
As a general rule, this exemption may be granted for a period of up to 3 years where:
- The property's Taxable Asset Value (VPT) does not exceed €125,000.
- The household's taxable income does not exceed €153,300.
- The property is intended for use as the household's owner-occupied primary residence.
Although the most common exemption period is 3 years, specific circumstances set out in the legislation or additional benefits granted by certain municipalities may apply.
At present, the simulator does not automatically assess eligibility for this exemption and the information is provided for guidance purposes only.
IMI Reduction for Dependants
Some municipalities grant a fixed reduction in the amount of IMI payable to households with dependant children.
The reductions currently established by law are:
- 1 dependant — €30 reduction.
- 2 dependants — €70 reduction.
- 3 or more dependants — €140 reduction.
This benefit only applies in municipalities that have adopted the scheme and to the household's owner-occupied primary residence.
Whenever applicable, the simulator takes this reduction into account when providing the estimated amount of IMI payable.
Additional Information
How Is IMI Calculated?
IMI is calculated by applying the municipal IMI rate to the property's Taxable Asset Value (VPT).
In simple terms:
IMI = VPT × Municipal IMI Rate
Once the calculation has been made, any applicable reductions or exemptions may then be applied, provided the relevant eligibility criteria are met.
What Is the Taxable Asset Value (VPT)?
The Taxable Asset Value (VPT) is the fiscal value assigned to each property by the Portuguese Tax Authority.
This value does not necessarily correspond to the property's purchase price or market value.
The VPT is determined based on several factors, including the property's location, size, type, age and overall characteristics.
You can find the VPT on the property's Land Registry Tax Record (Caderneta Predial).
When Is IMI Paid?
IMI is paid annually.
Depending on the amount due, payment may be made in one, two or three instalments, in accordance with the schedule established by the Portuguese Tax Authority.
FAQ
Does the Purchase Price of the Property Affect IMI (Portuguese Municipal Property Tax)?
No. IMI is calculated based on the property's Taxable Asset Value and not on the property's purchase price or market value.
How Can I Check the Taxable Asset Value (VPT) of My Property?
The Taxable Asset Value (VPT) can be found on the property's Land Registry Tax Record (Caderneta Predial) or accessed through the Portuguese Tax Authority's online portal (Portal das Finanças).
Is Family IMI (Portuguese Municipal Property Tax) Applied Automatically?
Yes. If the municipality has adopted the scheme and the legal requirements are met, the reduction is applied automatically by the Portuguese Tax Authority.
I Recently Bought a Property. Am I Eligible for an IMI Exemption?
Depending on the property's Taxable Asset Value, the household's income and the use of the property as an owner-occupied primary residence, you may be eligible for a temporary IMI exemption for up to three years, with the possibility of an extension to five years in certain municipalities.
When Is IMI Paid?
Depending on the amount due:
- Up to €100: payment is made in a single instalment;
- More than €100 and up to €500: payment is made in two instalments;
- More than €500: payment is made in three instalments.
Do All Municipalities Apply the Same IMI Rate?
No. Each municipality sets its own IMI rate annually, within the limits established by law. As a result, the amount of IMI payable may vary from one municipality to another.
Who Is Eligible for a Permanent IMI Exemption?
A permanent IMI exemption may apply to households with low income and limited assets, provided they simultaneously meet the legally established thresholds for annual gross income and the property's Taxable Asset Value (VPT).
Does the Simulator Replace the Portuguese Tax Authority's Official Assessment?
No. The result provided is for informational purposes only and does not replace the official tax assessment issued by the Portuguese Tax Authority.
Find Out Whether You Could Pay Less IMI
Our simulator does more than simply calculate IMI based on the property's Taxable Asset Value (VPT) and the applicable municipal rate.
In addition to estimating the amount of IMI payable, the simulator helps identify potential tax reliefs related to your household circumstances, providing a more comprehensive view of the amount you may actually have to pay.
Enter your property details and find out how much IMI you could pay.
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