Portugal Wealth Tax Guide 2026 — AIMI Property Tax

Q: Is AIMI based on market value or the tax authority's valuation?

AIMI is based on the VPT (Valor Patrimonial Tributário) — the tax authority's assessed value, typically 70–85% of market value.

Q: Can I avoid AIMI by putting property in a company?

Transferring property to a company triggers IMT and stamp duty. Corporate AIMI has no threshold (0.4–0.8%), which may be lower for high-value assets, but offshore structures face up to 7.5%.

Q: How is AIMI assessed for married couples?

Married couples are assessed jointly with a combined €1,200,000 exemption. Couples under separate property regimes can request separate assessments.

Portugal's AIMI (Adicional ao Imposto Municipal sobre Imóveis) is an annual wealth tax on real estate property valued over €600,000, with rates of 0.7% to 1%. Married couples benefit from a doubled €1M threshold. NHR holders and non-residents face special rules.

AIMI is an additional municipal property tax introduced in 2017. It applies to the total tax asset value (VPT — valor patrimonial tributário) of all residential, commercial, and land properties owned by an individual or company, minus the exemption threshold. The VPT is determined by the Portuguese Tax Authority, not the market value or purchase price. It is generally lower than market value but is subject to periodic revaluation, particularly for urban properties. AIMI became a significant consideration for high-net-worth individuals relocating to Portugal following restrictions on the NHR regime's non-habitual resident tax exemptions for certain pension income.

Example: A single individual owns a property in Cascais with a VPT of €750,000. The first €600,000 is exempt. The remaining €150,000 is taxed at 0.7% — an annual bill of €1,050. If the same property is owned by a married couple, their joint threshold is €1,200,000. With a combined VPT of €1.5M (this property plus another), AIMI applies only to the excess of €300,000 at the marginal rates below.

AIMI Rates for 2026

Individuals:

0.7% on the portion of total VPT between €600,000 and €1,000,000 (for single individuals).
1% on the portion of total VPT exceeding €1,000,000.

Married couples (joint assessment):

0.7% on the portion of combined VPT between €1,200,000 and €2,000,000.
1% on the portion exceeding €2,000,000.

Companies: 0.4% on the total VPT of all properties owned, with no exemption threshold. An additional 0.4% on properties valued over €1M (total effective 0.8%). Holding real estate assets through companies (particularly offshore) may trigger punitive rates of up to 7.5% under anti-abuse rules.

Non-residents: Same rates as individuals, but the €600,000 exemption threshold may still apply. Non-residents who own Portuguese property via a company structure face the corporate AIMI rates and potential anti-abuse provisions.

How AIMI Is Calculated

AIMI is calculated on the sum of the VPT of all properties owned in Portugal as of 1 January of each tax year. The VPT for urban residential properties is based on the construction cost, location coefficient, comfort coefficient, and age coefficient. For rural properties, VPT is based on the land's inherent value. The tax authority reassesses VPT periodically, especially upon property transactions or significant renovations. Taxpayers receive an AIMI assessment notice (demonstração de liquidação) typically in June or July. Payment is due in one instalment if under €100, or two instalments (July and November) if over €100.

Exemptions and Reductions

Primary residence: No special exemption under AIMI — the €600,000 threshold applies to aggregate property value including the primary residence. However, properties held by real estate investment funds (REIFs or REIMIs) may benefit from transparency regimes.
Properties in the Autonomous Regions: Madeira and Azores set their own AIMI rates and thresholds, which may differ from mainland Portugal.
Properties classified as património cultural: National monuments and listed heritage buildings may qualify for exemptions.
Low-value properties: If total VPT across all properties is ≤€600,000 (singles) or ≤€1,200,000 (married couples), no AIMI is due.

AIMI Planning Strategies

Several legitimate strategies can minimise AIMI exposure:

Distribute property ownership among family members (each individual gets their own €600,000 exemption). This can be done via gift or sale, though IMT and stamp duty may apply on transfers.
Invest via real estate funds rather than directly — REIFs are transparent and tax-efficient, potentially avoiding AIMI at the investor level.
Structuring property holding companies with substantive local operations to avoid punitive offshore rates.
Review VPT valuations — if the VPT seems too high, you can challenge it through the Tax Authority's review process, though success rates vary.
Consider total asset allocation — holding high-value property in Portugal when alternatives exist in lower-tax jurisdictions may not be optimal from a wealth tax perspective.

FAQs

Does AIMI apply to non-residents who own property in Portugal?

Yes. Non-residents are subject to AIMI on the same basis as residents. The €600,000 exemption applies if the total VPT of properties owned in Portugal exceeds that threshold. Non-residents who hold property through offshore companies face the higher corporate rates and potential anti-abuse penalties.

Is AIMI based on market value or the tax authority's valuation?

AIMI is based on the VPT (Valor Patrimonial Tributário), which is the tax authority's assessed value. This is typically 70–85% of market value but can vary significantly. The VPT is recalculated when properties are bought, sold, or substantially renovated.

Can I avoid AIMI by putting property in a company?

Transferring property to a company typically triggers IMT and stamp duty. Once in the company, the property is subject to corporate AIMI (0.4–0.8%), which has no threshold. For high-value properties, the corporate rate may be lower than the 1% individual rate above €1M, but the transfer costs and ongoing compliance burden must be weighed. Using an offshore company to hold property may result in a punitive 7.5% AIMI rate.

How is AIMI assessed for married couples?

Married couples who own property jointly or separately are assessed together if they opt for joint property taxation (regime de bens comuns). Each spouse's properties are aggregated, and the combined exemption of €1,200,000 applies. Couples married under separate property regimes can request separate assessments.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. AIMI regulations are complex and subject to annual amendments through the State Budget. You should consult a qualified Portuguese tax professional for advice specific to your property portfolio.