If you own property in Portugal — or you're considering buying — understanding the Portugal wealth tax is essential for your financial planning. Known officially as the Adicional ao Imposto Municipal sobre Imóveis (AIMI), the wealth tax in Portugal is levied on high-value real estate holdings and can significantly affect your annual tax bill.
In this comprehensive guide for the 2025/2026 tax year, we break down everything you need to know: who pays, what's taxed, current rates and thresholds, available exemptions, and practical calculation examples. Whether you're a Portuguese resident, a non-resident investor, or an expat relocating to Portugal, this article will help you navigate AIMI with confidence.
What Is Portugal's Wealth Tax (AIMI)?
Portugal does not have a traditional net-wealth tax that covers all asset classes (like bank accounts, investments, and personal property). Instead, since 2017, Portugal applies a supplementary property tax — the AIMI — that functions as a wealth tax on real estate.
The AIMI is an additional charge on top of the regular municipal property tax (Imposto Municipal sobre Imóveis, or IMI). While IMI is paid by all property owners regardless of the value of their holdings, AIMI is specifically designed to target owners of higher-value residential and building-land portfolios.
Key Characteristics of AIMI
- Annual tax: Assessed once per year, based on property values registered on January 1st.
- Applies to: Urban residential properties and building land (terrenos para construção).
- Does not apply to: Commercial, industrial, or rural properties.
- Taxpayers: Individuals (both residents and non-residents), companies, and undivided inheritances (heranças indivisas) that own qualifying Portuguese real estate.
- Assessment basis: The combined Valor Patrimonial Tributário (VPT) — the tax-registered value — of all qualifying properties owned by the taxpayer.
The AIMI is sometimes called the "Portuguese wealth tax" in international media, although it is more accurately described as a luxury property surtax.
Who Has to Pay Portugal Wealth Tax in 2025/2026?
The AIMI applies to any individual, company, or undivided estate that owns Portuguese urban residential property or building land with a combined VPT exceeding the applicable exemption threshold as of January 1st of the tax year.
Individuals (Residents and Non-Residents)
Both Portuguese tax residents and non-residents who own qualifying properties are subject to AIMI. However, individuals benefit from a personal exemption (deduction) before the tax is calculated:
- Single taxpayer: The first EUR 600,000 of combined VPT is exempt.
- Married couple / civil partnership (joint taxation option): The first EUR 1,200,000 of combined VPT is exempt if they opt for joint AIMI assessment.
This means that if you are a single individual and the total VPT of your Portuguese residential properties is below EUR 600,000, you owe no AIMI.
Companies and Other Legal Entities
Corporate owners of qualifying real estate receive no exemption threshold — AIMI applies from the first euro of VPT. This is an important distinction, and it has implications for property held through corporate structures.
Undivided Inheritances (Heranças Indivisas)
Undivided estates also receive no personal exemption and are taxed at a flat rate on the entire VPT.
What About Properties Held in Trusts or Foreign Structures?
Properties ultimately owned through offshore entities or structures domiciled in tax havens (as classified by Portugal's "blacklist") face an aggravated AIMI rate of 7.5% — a punitive measure designed to discourage opaque ownership.
Portugal Wealth Tax Rates for 2025/2026
The AIMI rates for the 2025/2026 tax year are structured progressively for individuals, while companies face flat rates. Here is a detailed breakdown:
Rates for Individuals
| Combined VPT (after EUR 600,000 exemption) | AIMI Rate |
|---|---|
| Up to EUR 1,000,000 | 0.7% |
| Exceeding EUR 1,000,000 | 1.0% |
For married couples or civil partners who opt for joint AIMI taxation, the exemption is EUR 1,200,000, and the progressive bands apply to the combined holdings above that threshold.
Rates for Companies
| Situation | AIMI Rate |
|---|---|
| Standard corporate ownership | 0.4% |
| Properties owned by entities domiciled in blacklisted jurisdictions | 7.5% |
Rates for Undivided Inheritances
| Situation | AIMI Rate |
|---|---|
| Standard undivided estate | 0.7% |
Important Note: The VPT used for AIMI is the tax-registered value of the property as assessed by the Portuguese tax authority (Autoridade Tributária e Aduaneira), not the market value or the purchase price. VPT values are periodically updated and can be reviewed through the Finanças portal.
How to Calculate Your Portugal Wealth Tax Liability
Let's walk through a few practical examples to illustrate how AIMI works in practice for the 2025/2026 tax year.
Example 1: Single Individual With a Property Portfolio of EUR 900,000 VPT
- Total VPT of qualifying properties: EUR 900,000
- Personal exemption: EUR 600,000
- Taxable amount: EUR 900,000 − EUR 600,000 = EUR 300,000
- AIMI rate: 0.7% (since EUR 300,000 is below the EUR 1,000,000 upper band)
- AIMI due: EUR 300,000 × 0.7% = EUR 2,100
Example 2: Single Individual With EUR 2,000,000 VPT
- Total VPT: EUR 2,000,000
- Personal exemption: EUR 600,000
- Taxable amount: EUR 2,000,000 − EUR 600,000 = EUR 1,400,000
- First EUR 1,000,000 taxed at 0.7% = EUR 7,000
- Remaining EUR 400,000 taxed at 1.0% = EUR 4,000
- Total AIMI due: EUR 7,000 + EUR 4,000 = EUR 11,000
Example 3: Married Couple (Joint AIMI Election) With EUR 1,800,000 VPT
- Combined VPT: EUR 1,800,000
- Joint exemption: EUR 1,200,000
- Taxable amount: EUR 1,800,000 − EUR 1,200,000 = EUR 600,000
- AIMI rate: 0.7%
- AIMI due: EUR 600,000 × 0.7% = EUR 4,200
Example 4: Portuguese Company Owning Residential Property Worth EUR 500,000 VPT
- Total VPT: EUR 500,000
- Exemption: None (corporate owners have no threshold)
- Taxable amount: EUR 500,000
- AIMI rate: 0.4%
- AIMI due: EUR 500,000 × 0.4% = EUR 2,000
Want a quick estimate? Use our Portugal Wealth Tax Calculator to run your own numbers instantly.
AIMI Payment Deadlines and Procedures
Understanding when and how the Portugal wealth tax is collected is just as important as knowing how much you owe.
Assessment Date
AIMI is assessed based on property ownership as of January 1st of each year. If you sell a qualifying property on January 2nd, you are still liable for AIMI for that entire year.
Payment Timeline
The Portuguese tax authority (AT) issues AIMI assessment notices in September of each year. The tax is typically due for payment in September, with the following schedule:
- AIMI up to EUR 100: Paid in a single installment in September.
- AIMI above EUR 100: May be paid in two installments — the first in September and the second in November.
How to Pay
Payment can be made through:
- The Portal das Finanças (online tax portal)
- ATM (Multibanco) using the payment reference provided on the assessment notice
- Bank transfer or direct debit
- In person at a local tax office (Serviço de Finanças)
Non-residents should ensure they have a Portuguese tax identification number (Número de Identificação Fiscal, or NIF) and access to the Finanças portal, or appoint a fiscal representative.
Exemptions, Deductions, and Special Rules
Several exemptions and special rules can reduce or eliminate your AIMI liability.
Properties Exempt From AIMI
- Commercial and industrial properties: Only urban residential properties and building land are subject to AIMI. Shops, offices, warehouses, and factories are excluded.
- Rural properties: Agricultural and rural-classified land is not covered.
- Properties owned by the State, municipalities, and certain public entities: These are exempt.
- Properties allocated to social housing or public-interest uses may qualify for exemption under specific conditions.
Joint Taxation Election for Married Couples
Married taxpayers and civil partners can opt for joint AIMI assessment, which doubles the personal exemption from EUR 600,000 to EUR 1,200,000. This election must be made annually between April 1st and May 31st through the Portal das Finanças. Failing to make this election means each spouse is assessed individually.
AIMI as a Deductible Expense
For individuals who earn rental income from the properties subject to AIMI, the AIMI paid may be deductible against rental income for IRS (personal income tax) purposes, subject to certain conditions. Additionally, for corporate owners, AIMI is generally deductible as an operating expense for IRC (corporate income tax) purposes, except for properties that are not used in the company's business activity.
Option to Be Taxed at Marginal IRS Rates
Individuals have the option to include AIMI in their general IRS taxable income (englobamento). In this case, the AIMI is calculated using the taxpayer's marginal IRS income tax rate instead of the standard AIMI rates. This can sometimes result in a lower liability if the taxpayer's marginal rate is lower than the applicable AIMI rate — though for most high-net-worth individuals, this is unlikely to be beneficial.
To explore how your income tax interacts with wealth tax, try our Portugal Income Tax Calculator.
Common Mistakes and Misconceptions About Portugal Wealth Tax
Many property owners — especially foreigners and expats — make avoidable errors when it comes to AIMI. Here are the most common pitfalls:
1. Confusing VPT With Market Value
The AIMI is based on the Valor Patrimonial Tributário (VPT), not the property's market price. In many cases, the VPT is significantly lower than the current market value, which can work in your favor. However, VPT values are periodically reassessed, and renovations or improvements can trigger increases.
2. Assuming Companies Always Pay Less
While the corporate AIMI rate (0.4%) is lower than the individual rate (0.7%–1.0%), companies receive no personal exemption. For individuals with VPT below EUR 600,000, no AIMI is due at all — but a company owning the same property would pay 0.4% on the full value. Always compare both scenarios before structuring ownership.
3. Forgetting to Elect Joint Taxation
Married couples who fail to make the joint AIMI election between April and May each year lose out on the doubled EUR 1,200,000 exemption. This is not automatic — it must be actively requested.
4. Ignoring the Tax When Buying Property
New buyers often focus on IMT (property transfer tax) and IMI (annual municipal tax) but forget that AIMI applies on top of IMI if the total portfolio VPT exceeds the threshold. Factor AIMI into your annual holding costs.
5. Non-Residents Overlooking Their Obligations
Non-residents are fully liable for AIMI. If you own Portuguese property but live abroad, you must ensure you receive and respond to assessment notices. Appointing a Portuguese fiscal representative is strongly recommended.
Portugal Wealth Tax vs. Other European Countries
How does Portugal's wealth tax compare with similar levies in other European nations?
- Spain: Spain's Impuesto sobre el Patrimonio (Wealth Tax) covers all assets (not just property), with rates ranging from 0.2% to 3.5% depending on the autonomous community. Spain also introduced a Solidarity Tax on Large Fortunes for net wealth above EUR 3 million.
- France: France replaced its broad wealth tax (ISF) with the Impôt sur la Fortune Immobilière (IFI) in 2018, which — like Portugal's AIMI — targets only real estate. IFI applies to net real estate assets above EUR 1.3 million, with progressive rates from 0.5% to 1.5%.
- Norway: Norway levies a net wealth tax on all worldwide assets (for residents), with rates around 1% above a threshold of approximately NOK 1.7 million.
Portugal's approach is comparatively narrow in scope (only residential property and building land) and moderate in rate (0.4%–1.0% for most taxpayers). This makes it relatively taxpayer-friendly compared to broader wealth taxes, though the 7.5% punitive rate on blacklisted-jurisdiction holdings is one of the harshest in Europe.
Conclusion: Key Takeaways for 2025/2026
Here's a summary of what you need to know about the wealth tax in Portugal for the 2025/2026 tax year:
- AIMI applies to urban residential properties and building land with VPT values exceeding EUR 600,000 (individuals) or from the first euro (companies).
- Portugal tax rates for 2025/2026: 0.7%–1.0% for individuals, 0.4% for companies, and 7.5% for blacklisted-jurisdiction entities.
- Married couples can double their exemption to EUR 1,200,000 by electing joint AIMI taxation between April 1st and May 31st.
- Payment is due in September (and November for larger amounts), based on ownership as of January 1st.
- Non-residents are fully liable and should appoint a fiscal representative.
- Use the VPT, not market value, to determine your liability.
Use our Portugal Wealth Tax Calculator to estimate your AIMI for 2025/2026, and pair it with our Portugal Income Tax Calculator to get a complete picture of your Portuguese tax obligations.
This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.