The start of May brings with it warmer weather and bills to pay, particularly when it comes to owning property. If you own a house in Portugal, it’s quite likely that you need to pay the Imposto Municipal sobre Imóveis (IMI), the municipal property tax, this month.
This tax payment begins in May and can be made at once or in three installments, depending on the value.
Your IMI cost is calculated by multiplying the Valor Patrimonial Tributário (VPT) of the property by the IMI rate in the municipality the property is located in. The IMI rate is fixed annually by the municipalities and ranges between 0,3% e 0,45%.
IMI funds are then used to maintain public infrastructures in municipalities. Read on to find out how the IMI payment works, deadlines, and whether you are exempt from paying this property tax.
IMI Payment Deadlines 2023
The IMI payment 2023 can be made at once or in up to three installments, depending on the amount.
If your IMI is up to 100 euros, you must pay it at once in the month of May until the last of the month.
If your IMI is over 100 euros and up to 500 euros, you can pay in two installments, paid in May and then in November.
If your IMI is over 500 euros, you can pay in three installments in May, August, and November.
You do not have to pay your IMI in installments. You can pay the amount all at once in May.
How to pay the IMI Property Tax
First, to find out how much you owe, check your “Portal das Finanças” online. The amount owed will be under “Pagamentos” and then “Pagamentos a Decorrer.” Your IMI will also be sent to your fiscal address by post.
Once you know your IMI amount, you can pay the property tax in various ways:
- Tax office
- CTT Office
- ATM machine
- Portuguese online banking
- The mobile APP “Situação Fiscal – Pagamentos”
IMI Payment Exemptions
A permanent exemption is possible if your household does not make more than €15,295 a year, but a request must first be made to Finanças (Tax office). A temporary exemption of 3 to 6 years is also possible if this is your first property purchase in Portugal that you will reside in or rent out.