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Portugal's 2023 AIMI Reform: How High-Value Property Taxation Changed
The 2024 State Budget updated AIMI (Additional Municipal Property Tax) calculation brackets and strengthened reporting for high-value residential property owners.
On 29 December 2023, the State Budget Law for 2024 was published in the Diário da República, including important adjustments to the Additional Municipal Property Tax (AIMI). This tax applies to owners of high-value residential property and is often relevant to expatriates who purchase real estate in Portugal.
The reform updated AIMI calculation brackets and clarified the deduction thresholds for married couples or civil partners submitting joint property declarations. It also strengthened reporting obligations for corporate property holders.
For foreign nationals—especially British, American, Brazilian, Canadian and Israeli property owners—these changes can impact annual tax liability. High-value homes in Lisbon, Cascais, Oeiras and parts of the Algarve are particularly affected.
The reform underscores the importance of pre-acquisition tax planning, particularly for investors who structure their real estate holdings through companies. AIMI remains one of the more distinctive features of Portugal’s property tax system.
Official source: Diário da República, State Budget Law for 2024, 29 December 2023 (https://dre.pt)