The Tax and Customs Authority warned Portuguese property owners that the deadline for payment of the second installment of the Municipal Property Tax ends on August 31st. This obligation applies only to taxpayers whose annual IMI value exceeds 500 euros, with the tax being divided into three installments: the first was due in May, the second must be settled by the end of August, and the third will be due during November. Failure to meet the deadline may result in the collection of interest and other charges provided for by law.
The IMI payment deadlines vary depending on the annual tax amount. When the amount is equal to or less than 100 euros, payment is made in a single installment in May. If the value exceeds 100 euros and is equal to or less than 500 euros, the tax is split into two installments, with deadlines in May and November. Only property owners with IMI exceeding 500 euros have three annual installments.
The AT acknowledged the existence of "some anomalies" in the collection of IMI for 2025, specifically for landlords with housing lease contracts prior to 1990. These property owners, who benefited from exemption under Article 46-A of the Statute of Tax Benefits, received billing notices even though the contracts remained in force. According to the law in effect since January 2024, these contracts are exempt from income tax and IMI throughout the entire duration period.
Taxpayers who have already paid the erroneous tax will receive a refund, or the difference will be deducted from subsequent installments for those who have their IMI split into payments. The AT also clarified that landlords who submitted the exemption request in 2024 do not need to repeat the process in subsequent years, as the benefit remains valid as long as the contract conditions are met.
