Council Tax (IMI)
When you purchase property in Portugal, you are liable to pay property owners tax annually (IMI).
IMI (Imposto Municipal sobre Imóveis)
IMI is the tax payable by property owners. The tax is calculated in relation to the tax value of the property (value of the property as assessed by the Tax Authorities). It is paid yearly, in one or two installments. The rates may vary depending on the location of the property.
| Type of Property | Rate |
|---|---|
| URBAN PROPERTY | Between 0.3 and 0.45% |
| RURAL PROPERTY | 0.8% |
| Property owned by residents in offshores (except individuals) | 7.5% |
Offshore (Blacklisted)companies owning property in Portugal have to pay council tax at a maximum rate 5%. Offshore whitelisted companies will use the table above.
Property for permanent residence can be exempt from paying IMI from 3 to 6 years, depending on the assessed value.