The AIMI Tax Explained: A Guide for Property Owners in Portugal

For owners property in Portugal, the regular IMI (Imposto Municipal sobre Imóveis) is a familiar, predictable cost. However, there is a second, more complex tax that every high-net-worth owner must understand: the AIMI. This "additional" property tax functions as a form of wealth tax, and not knowing its specific rules can lead to costly surprises

Own property in Portugal? If your residential holdings are valued over €600,000, you need to know about the AIMI. We break down Portugal's "additional" property tax, the 2025 tax brackets, and exactly how the progressive rates are calculated for high-value portfolios.

Understanding Portugal's AIMI Property Tax (2025)

If you own real estate in Portugal, you are likely familiar with the annual IMI (Imposto Municipal sobre Imóveis). However, there is an additional tax called AIMI (Adicional Imposto Municipal sobre Imóveis) that high-value property holders must understand.

The AIMI is an additional municipal property tax levied annually. It is calculated based on the combined taxable value (VPT) of all residential urban properties and land for construction held by a single individual or entity.

It is important to note that this tax does not apply to properties used for commercial, industrial, or touristic purposes. [1][2]

AIMI Tax Brackets and Deductions (2025)

For individual taxpayers in 2025, the AIMI system applies a standard deduction before calculating the tax.

• Standard Deduction: A deduction of €600,000 is applied to the total VPT of an individual's eligible properties.

• Joint Filing: Married couples or those in civil partnerships can file jointly. This allows them to combine their deductions, effectively doubling the allowance to €1,200,000 against their combined property value. [1][2]

Once the deduction is considered, progressive tax rates apply to the remaining value. For 2025, the brackets are:

• 0.7% on the taxable value between €600,000 and €1,000,000.

• 1.0% on the taxable value between €1,000,000 and €2,000,000.

• 1.5% on the taxable value above €2,000,000.

How to Calculate AIMI for Properties Over €1 Million

The progressive rates can be confusing. Let's walk through a clear example for an individual who owns properties (or partial interests) with a combined VPT of €2,100,000.

Because the tax brackets start after the €600,000 deduction, the calculation looks like this:

1. First Bracket (0.7%): This rate applies to the value between €600,000 and €1,000,000 (a €400,000 span).

   • €400,000 * 0.7% = €2,800

2. Second Bracket (1.0%): This rate applies to the value between €1,000,000 and €2,000,000 (a €1,000,000 span).

   • €1,000,000 * 1.0% = €10,000

3. Third Bracket (1.5%): This rate applies to the value above €2,000,000. Since the total value is €2,100,000, €100,000 falls into this bracket.

   • €100,000 * 1.5% = €1,500

4. Total AIMI Tax Due:

   • €2,800 (Bracket 1) + €10,000 (Bracket 2) + €1,500 (Bracket 3) = €14,300

Key Features to Remember

• Scope: AIMI only counts urban residential properties and land for construction. [1]

• Timeline: The VPT is assessed as of January 1st each year. The tax is typically paid in a single installment between September 1st and 30th. [2]

• Companies: Companies holding residential properties pay a flat rate of 0.4% on the total VPT and do not benefit from the €600,000 deduction.

For high-net-worth individuals, AIMI constitutes a progressive "wealth tax" on property, separate from and in addition to the standard IMI.