Housing Tax (IMI) to rise by 4.5%

Housing Tax (IMI) to rise by 4.5%

The Urban Property Tax (IMI) to be paid next year, with reference to 2025, will increase by 4.5% for housing and 6% for services, commerce, and industry for buildings subject to the automatic triennial update of the Taxable Asset Value (VPT) carried out by the Tax Authority per The Portugal News 12^th November 2025.

However, councils can lower the rates, which may mitigate the impact of this increase. In 2025, for example, 44 municipalities decided to reduce taxation, with more than two hundred applying the minimum tax of 0.30%, according to data collected by ECO on the Tax Authority (AT) website.

“According to the published decree, the monetary correction coefficient for 2022 is 1.06, meaning the update factor is 0.06. Thus, commercial, industrial, or service properties will be updated by 1.06, or 6%. Residential properties, building plots, and others will be updated by 1.045, or 4.5%,” it details.

This will be another burden weighing on the budgets of families who took out loans to buy homes and who do not benefit from tax exemptions. For example, if a homeowner currently pays €500 in property tax (IMI), the bill will increase by 4.5%, or €22.50, to €522.50 next year, assuming the respective municipality decides to keep the rate unchanged.

In the case of buildings intended for service, commercial, or industrial activities, the increase will be greater, at 6%. This means that a property tax (IMI) of two thousand euros, for example, will increase by 120 euros to 2,120 euros.