However, councils can lower the rates, which may mitigate the impact of this increase. In 2025, for example, a year of municipal elections, 44 municipalities decided to reduce taxation, with more than two hundred applying the minimum tax of 0.30%, according to data collected by ECO on the Tax Authority (AT) website.

Last year, the tax increase was 9.75% for housing and 13% for services, commerce, and industry, through the triennial review. In 2025, and "due to the effect of inflation between 2022 and 2024, the increase in IMI (Municipal Property Tax) will be lower," at 4.5% and 6%, since "the price variation was lower between 2022-2024 than between 2021-2023," explains tax expert Ricardo Reis, from the consulting firm Deloitte, to ECO.

“According to the published decree, the monetary correction coefficient for 2022 is 1.06, meaning the update factor is 0.06. Thus, commercial, industrial, or service properties will be updated by 1.06, or 6%. Residential properties, building plots, and others will be updated by 1.045, or 4.5%,” it details.

This will be another burden weighing on the budgets of families who took out loans to buy homes and who do not benefit from tax exemptions. For example, if a homeowner currently pays €500 in property tax (IMI), the bill will increase by 4.5%, or €22.50, to €522.50 next year, assuming the respective municipality decides to keep the rate unchanged.

In the case of buildings intended for service, commercial, or industrial activities, the increase will be greater, at 6%. This means that a property tax (IMI) of two thousand euros, for example, will increase by 120 euros to 2,120 euros.