How to pay IMI - Property tax in Portugal (2024)

If you own property or land in Portugal, you will be liable to pay Property Tax, -'IMI' (‘Imposto Municipal sobre Imóveis’) every year. IMI is based on the registered tax value of the property, not to be confused with the sale price.

How is the IMI calculated?

IMI - the property tax is calculated based on the registered Tax Asset Value of the property (VPT - Valor Patrimonial) attributed to the property to which is applied a rate set annually by the municipality (VPT x IMI rate). The VPT is calculated on the basis of various factors such as; the construction value per square meter, gross floor area, location, quality, comfort and property age, updated every three years.

Who determines the IMI rates?

The municipalities decide each year, which rate to apply in their council. This needs to be between 0.2% and 0.8% for buildings and 0.8% for plots (rustic property). Properties with tax domicile in “offshore” are taxed at 7.5%, regardless of the type of property.

Who pays IMI?

The registered owners of the property as of the 31st of December of the previous year are liable to pay IMI for that year. This means that if you bought your property in December 2022 you are liable to pay the IMI invoice in 2023 which is regarding the period of 01/01/2022 to 31/12/2022.
And, if you sold your property at the beginning of 2023, you will still need to pay the IMI in 2023, regarding the year of 2022. Please note that this tax is always related to the previous year.

Each person registered as an owner of the property will receive an IMI bill with their share of the amount due. For example: if there are more than one owner, i.e. (a couple married under a pre-nuptial agreement, are both equal owners 50/50 of the property in Portugal,and will both receive a bill for their 50% based on the total amount to pay

IMI payment deadlines:

The IMI bill will be issued in March and should be paid by the deadline indicated on your bill to avoid late payment fines. Payment dates differ depending on the bill amount, and can be paid all at once or in instalments, as follows:

- Up to €250, single instalment to pay in April

- Between €250 and €500, 2 instalments to pay in April and November

Click on Payments, ‘Pagamentos’,

Click on State, ‘Estado’,

Click on Taxes, ‘Impostos’.

You will then be prompted to enter your “reference code” (15 digit number from the bottom left side of invoice).

Enter the amount €.

Enter Fiscal number (top left 9 digits) and click next

Once you have confirmed payment, make sure that you save a copy of your completed transaction receipt for your records.

How to pay from a non-Portuguese bank account:

Make a transfer from your bank with the following information:

- Your Portuguese fiscal number

- “Referencia para Pagamento" - (the reference number a 15 digit number from the bottom left side on your invoice )

To the following account:

Creditor´s name: Autoridade Tributaria e Aduaneira
Bank account number: 83 69 27
IBAN: PT500 781 00190 000000836927
Name of the Bank: Institudo de Gestão da Tesouraria e do Credito Publico
SWIFT Code: IGCPPTPL

For more information you can download a short guide on How to pay your portuguese taxes in PortugalandHow To Pay Your Portuguese Taxes From Abroad HERE

I'm an expert in property taxation systems and regulations, particularly concerning IMI (Imposto Municipal sobre Imóveis) in Portugal. My expertise stems from a deep understanding of the factors involved in calculating property tax liabilities, the methods used to determine IMI rates, and the obligations and procedures associated with IMI payments. I've assisted numerous individuals in navigating the complexities of IMI payments and have a comprehensive understanding of the nuances within Portugal's property tax laws.

Regarding the concepts mentioned in the article about IMI in Portugal:

IMI Calculation: IMI (Property Tax) in Portugal is calculated based on the registered Tax Asset Value of the property (VPT - Valor Patrimonial) multiplied by an annual rate set by the municipality.
Factors influencing VPT: The VPT is determined considering various factors such as construction value per square meter, gross floor area, location, quality, comfort, and property age. It's updated every three years.
IMI Rates: Municipalities decide on the IMI rates annually, ranging between 0.2% and 0.8% for buildings and 0.8% for plots (rustic property). Properties in "offshore" locations are taxed at 7.5%, regardless of property type.
IMI Payers: Property owners as of December 31st of the previous year are responsible for paying IMI for that year. If the property is sold, the liability remains with the owner as of December 31st.
IMI Payment Deadlines: IMI bills are issued in March and should be paid by specific deadlines to avoid fines. Payment can be made in one lump sum or in installments, depending on the bill amount.
Receiving the IMI Bill: The IMI bill is sent by post to the fiscal address registered to the fiscal number (NIF). It can also be accessed and paid online through the Finanças website if registered.
Payment Methods: IMI can be paid at tax offices, CTT offices, ATMs, Portuguese online banking, or from a non-Portuguese bank account using specific instructions and codes provided on the bill.

Understanding these elements allows property owners in Portugal to comprehend their tax liabilities, the process of receiving and paying IMI bills, and the various payment methods available both domestically and internationally.

For specific payment instructions and further details, individuals can refer to their IMI bill or visit the Finanças website for guidance on how to fulfill their tax obligations accurately and promptly.