IMI — Imposto Municipal sobre Imóveis

IMI (Imposto Municipal sobre Imóveis) is Portugal's annual property tax, equivalent to council tax or property rates. It is charged on the fiscal value (valor patrimonial tributário, VPT) of the property, not its market value. Rates are set annually by each municipality: urban properties are charged 0.3%–0.45% (municipalities can opt for lower rates to attract residents), rural properties 0.8%, and properties owned through offshore structures face a 7.5% rate. IMI is charged to whoever owns the property on 31 December of the previous year. Permanent residents living in a property as their primary residence benefit from significant IMI exemptions and reductions. IMI is deductible as an expense for landlords computing Category F rental income.