Notes for international buyers
Owning a Home Comes with an Annual Bill: the IMI
You already know about the purchase taxes (IMT). But after you get the keys, you must budget for the "Imposto Municipal sobre Imóveis" (IMI).
WHAT IS IT? It is the annual Council Tax. Unlike in many countries, it is calculated based on the "Taxable Patrimonial Value" (VPT) of the property, not the market price you paid.
HOW MUCH WILL I PAY? The legal range is 0.3% to 0.45% of the VPT per year, set each year by the municipality. Example: If the Tax Office values your home at €200,000, you pay around €600 to €900 per year.
WHEN TO PAY? Up to €100, you pay once, in May. Between €100 and €500, in two instalments (May and November). Over €500, in three (May, August and November).
MY ADVICE: Setting up a direct debit for IMI is the safest way to avoid fines, especially if you spend long periods outside Portugal. We can help you set this up.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.