The Government will shortly submit to Parliament a proposal to amend the law governing the taxation under the Municipal Property Tax (IMI) for dams, wind farms and photovoltaic parks, an issue it has been working on. The information was provided by the Finance Minister, Joaquim Miranda Sarmento, during a formal hearing before the Committee...
Government to soon submit to Parliament a proposal to amend IMI on dams
Wednesday, 7 January 2026RSS
Context & Explainers
The municipal property tax (Imposto Municipal sobre Imóveis), known as IMI, is an annual tax on property ownership calculated from the property’s taxable value, with the exact rate set by each municipality. For expats who own property, IMI is a recurring local cost that can vary by location and is often central to policy discussions about housing affordability.
Housing fiscal measures are government tax changes or incentives aimed at the property market — examples include changes to property tax (IMI Imposto Municipal sobre Imóveis), stamp or transfer taxes (IMT Imposto Municipal sobre Transmissões Onerosas de Imóveis) and income‑tax (IRS Imposto sobre o Rendimento das Pessoas Singulares) deductions for renovations or rental incentives. The estimated €200–300 million budgetary cost shows the measures have a meaningful impact on public finances and signals whether the government is prioritising tax relief for homeowners, landlords or construction, which can affect property prices and rental markets that matter to expats.
