Properties for habitation that are considered as a permanent place of residence are subject to IMT according to the following rates:

Secondary residences are taxed according to the following rates:

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Exemptions: Urban properties that are considered as a permanent place of residence are exempt from IMI for a maximum period of three years from the date of acquisition if the property’s tax value is under €125,000 and the taxpayer’s annual income is under €153,300.
The IMI payment schedule is as follows:

• Tax charge up to €100 – Paid in a single instalment in May.
• Tax charge between €100 to €500 inclusive – Paid in two instalments, in May and November.
• Tax charge over €500 – Paid in three instalments, in May, August and November.

Additional Property Tax (AIMI)

AIMI is an additional property tax. The taxable basis corresponds to the sum of the rateable values – ‘Valor Patrimonial Tributável’ or VPT – of all urban properties held by each taxpayer, regardless of residency, as reported on 1 January of each year. AIMI bills are issued in July for payment in September.

The tax applies as follows:

• Individual property owners – AIMI is applicable to individual property owners if the sum of all VPT is €600,000 or above, or to married or cohabiting couples who opt to submit a joint tax return if the sum of all VPT is €1.2 million or above. It is charged at 0.7% on the sum of all VPT over €600,000 and up to €1 million, 1% on the sum of all VPT over €1 million and up to €2 million, and 1.5% on the sum of all VPT over €2 million.
• Corporate property owners – Properties held by companies will pay an additional bill of 0.4% on the full VPT value. If the company is registered in a ‘blacklisted’ (low or no tax) jurisdiction, the company will pay AIMI of 7.5% on the full VPT value, in addition to the IMI charge of 7.5%.

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The basis to determine the tax residency of a company in Portugal takes into consideration whether the legal seat or place of effective management and control is based in Portugal.

1. A surtax of 1.5%, levied by the local council (Câmara Municipal), may apply.
2. A national surtax of 3% to 9% applies to taxable income over €1.5 million.
3. Qualifying small or medium enterprises (SMEs) may benefit from a reduced tax rate of 17% on the first €50,000 of taxable income and are subject to 21% on the remainder.

Withholding Taxes

Dividends – Dividends paid by a Portuguese entity to a non-resident company suffer a withholding tax of 25%, but if paid to a company with registered office in a ‘blacklisted’ jurisdiction (see list attached) the tax charge will rise to 35%. The withholding rate may be reduced under a double tax agreement (DTA), or it may be exempted under the EU Parent/Subsidiary Directive.

Royalties – Non-resident companies pay a 25% withholding tax on royalty payments unless the withholding rate is reduced under a DTA.

Interest – A non-resident company receiving bank interest will pay a 25% withholding tax (rising to 35% if registered in a ‘blacklisted’ jurisdiction) unless the withholding rate is reduced under a DTA.

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• More than 183 days in Portugal within any 12-month period; or
• Fewer than 183 days in Portugal but have residential accommodation that the Tax Department considers to be your ‘permanent home’.

Residents of Portugal are liable for Portuguese tax on all their worldwide income and some capital gains. They may also attract taxes on property rental, transfer of real estate

Non-residents of Portugal are liable for Portuguese tax only on Portuguese-source income and certain capital gains on Portuguese assets but remain liable for taxation in their country of residence.

As per Law n.º 55-A/2025, de 22/07

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