August is coming to an end, and if you own property, note that this month marks the payment of the second installment of the Municipal Property Tax (IMI) for those whose tax bill exceeds 500 euros.
It is important to remember that property owners (houses, garages, shops, among others) are required to pay IMI annually to the Tax and Customs Authority (AT).
The payment deadlines depend on the total value of the tax, as outlined on the public services portal gov.pt:
- Until May 31 – if the amount to be paid is equal to or less than €100 (paid in a single installment);
- May 31 and September 30 – if the amount is between €100 and €500 (paid in two installments);
- May 31, August 31, and November 30 – if the amount exceeds €500 (paid in three installments).
This year, the May deadline was postponed to June due to the electrical blackout on April 28, which caused delays in issuing IMI payment notices.
Property owners are reminded to make the annual IMI payment to the AT, with the second installment due in August if the tax exceeds 500 euros.
You can also choose to pay the entire tax amount at once if preferred.
“The payment letter sent in May includes both the amount and the reference for paying the total installments,” as noted on the same portal.
What if you miss the payment deadline?
If you miss the IMI payment deadline, you may incur late payment interest or even a fine, in accordance with article 116 of the General Tax Offenses Regime.
Are there exemptions?
Yes. To qualify for a permanent exemption from IMI, you need to meet the following conditions:
- Your household income must not exceed 2.3 times the annual value of the Social Support Index (IAS). In 2025, this equates to €16,824.50 (€522.50 x 14 months x 2.3);
- The house must be your primary residence, and the Taxable Asset Value (VPT) must be less than or equal to €67,260.20.
- The exemption is automatically and annually granted by the tax authorities.
For a temporary exemption, you must meet the following criteria:
- Your new property must not have a VPT greater than €125,000 and must be your fiscal residence.
- The household annual income must not exceed €153,000.
Note that “the temporary exemption has a maximum duration of 3 years and cannot be requested by families with debts to the State.”
Additionally, “Law No. 56/2023, dated October 6, 2023, introduced the possibility of extending the exemption for another 2 years, contingent on the decision of each municipal assembly.”
“This exemption request can be made only twice in a lifetime per taxpayer or household,” as mentioned on the same portal.
