The IMI is the municipal tax on the taxable value of rural and urban properties located in Portuguese territory and constitutes revenue for the municipalities where they are located.
The rule dictates that this tax applies to all rural and urban buildings, however, some exceptions are provided for in the law, under which the applicable rate may be reduced or, in some cases, even exempted (cf. , as an example, Article 44 of the Statute of Tax Benefits).

The rates applicable to the various properties are listed in Article 112 of the IMI Code, but the legislature has expressly granted the municipalities the possibility of changing them within a certain interval, since they are the beneficiaries of the revenue generated.It is precisely in the exercise of this power that some municipalities have been deliberating, in the municipal assembly, a reduction - which may reach 20% - of the municipal tax on real estate to be applied to urban buildings that are leased.

Read more (in portuguese): Reduction of IMI in leased buildings