IMI exemption in Portugal: who qualifies, 2026 limits and how to claim

Two exemptions, two different logics

IMI is Portugal's annual property tax: the home's taxable value (VPT) multiplied by the municipal rate, as the IMI calculator explains. For the main permanent home, the law provides two exemptions with distinct logics:

• the permanent exemption of article 11.º-A of the IMI Code, designed for households with low income and little property: it lasts while the conditions hold¹;
• the temporary exemption of article 46.º of the Tax Benefits Statute (EBF), designed for anyone who buys, builds, enlarges or improves the home they will live in: it lasts 3 years².

The conditions differ, the limits differ, and you can qualify for both at once. The IMI exemption calculator checks both in one go, with the 2026 values.

Permanent exemption: the 2026 limits

Article 11.º-A requires two conditions at the same time, both indexed to the annual value of the IAS (14 times the monthly IAS of €537.13, that is, €7,519.82 in 2026)¹³:

Two details decide most cases:

• what counts is the gross income, before any deduction: the total income declared in the whole household's IRS return;
• what counts is the whole property portfolio, not just the home: every rural and urban property of every household member, added up by the VPT on the caderneta predial. You can estimate a property's value in the VPT calculator.

With both met, the exemption covers the main permanent home and the household's rural land, and renews automatically every year.

Permanent exemption: automatic, with one duty

There is no application form: the tax authority recognises the exemption on its own initiative, crossing the IRS return with the property register¹. The flip side is a duty that is easy to miss: if any member of the household files the IRS return (or any IMI declarations due) late, the exemption is not granted for that year. The following year, with the filings in order, it is recognised again.

The exemption also applies to shares of undivided inheritances, for the heirs who meet the conditions¹.

The 3-year exemption: the conditions

Article 46.º of the EBF exempts for 3 years urban properties built, enlarged, improved or acquired for consideration as the main permanent home of the taxpayer or the household²:

Mind the second limit: since Law 12/2022 what counts is the gross income, not the taxable income many older articles still cite². Beyond the limits, the home must become the main permanent residence within 6 months of the purchase or the end of the works, proven by the fiscal domicile.

For enlargements and improvements, the exemption applies only to the increase in taxable value produced by the works, although the full VPT counts for the limits².

How to claim: automatic on purchase, a request otherwise

The path depends on how the home reached your hands²:

• purchase (onerous acquisition): the exemption is automatic. The tax authority applies it from the deed and the IMT declaration, with no request;
• construction, enlargement or improvement: the request goes to the local tax office (or through the Portal das Finanças e-balcão), duly documented, within 60 days after the end of the 6-month deadline to make the home your residence.

A late request does not kill the benefit, but shortens it: the exemption starts in the year of the request and ends when it would have ended had the deadlines been met. The same happens if you only move your fiscal domicile to the home after the 6-month deadline.

Three years, plus two, twice in a lifetime

The legal period is 3 years, counted from the year of acquisition or completion, inclusive: buying in 2026 means paying no IMI for 2026, 2027 and 2028 (billed in each following year). Two important complements²:

• the municipal assembly can extend the exemption by 2 more years, by a decision communicated to the tax authority by 31 December, to apply the following year. Not all municipalities do it: check yours;
• the benefit can only be granted twice to the same taxpayer or household, over a lifetime. A third home pays IMI from the first year, even within the limits.

What the exemption is worth

The value is the IMI you stop paying: the VPT times the municipal rate, which for urban property sits between 0.3% and 0.45%. An example with the numbers from the calculator:

If the municipality has decided the extension, two more years are added: an extra €665. And for those who meet the permanent exemption's conditions, the saving repeats year after year, with no end date.

What the IMI exemption does not cover

It is worth separating what this regime is not:

• it is not the IMT exemption: IMT is paid once, when buying the home, and has its own regimes, such as the young-buyer IMT Jovem up to age 35. The two exemptions can stack, but they are not the same thing;
• it does not cover the AIMI: the additional tax on property portfolios above €600,000 has its own rules, in the AIMI calculator;
• it does not cover the other EBF exemptions: urban rehabilitation, cultural-interest buildings, public-utility entities and the article 46.º variant for new homes intended for residential rental have their own conditions;
• it does not stop surcharges: vacant or ruined buildings can pay aggravated rates, a separate regime.

Do the sums before the bill arrives

Each year's IMI is billed the following year, and the exemption is decided by the facts of 31 December. If you bought or are about to buy a home, check the two limits in the IMI exemption calculator; if your home's VPT is inflated, consider requesting the free revaluation (explained in the VPT calculator), because a lower VPT can mean less IMI or even entry into the exemption limits. And if your household has low income, make sure of one thing only: the IRS returns filed on time, every year.