Oeiras Raises IMI to 0.45%, Families and Businesses Brace for Higher Bills

A surprise vote by the Oeiras executive has pushed the municipal property tax to the legal ceiling, triggering an estimated €17.7 M surge in annual revenue but also stirring warnings of a heavier household bill next spring. The change, confirmed after an unusually heated council meeting, brings the urban IMI rate to 0.45 %, ending four straight years at the minimum and positioning Oeiras as the most expensive address in the Lisbon metropolitan area for owners of flats, shops and offices.

Tax Shock in a Municipality Known for Low Rates

For many residents the decision feels abrupt. Oeiras had cultivated a reputation for fiscal moderation, keeping the levy at 0.30 % since 2021 and selling that stance as a magnet for both tech headquarters and middle-class families. By jumping to 0.45 %, the council expects to collect more than €53 M in 2026. The timing is awkward: mortgage costs remain high, inflation is only just cooling and neighbouring Lisbon, Sintra and Amadora are all holding the line at 0.30 %. Home-owner groups complain that the hike arrives exactly when disposable income is already squeezed.

What Will You Pay and When

Under the approved schedule, the new taxable period starts on the first day of 2025, but cheques—or more likely direct debits—will not fall due until spring 2026. A typical flat with a patrimonial value of €200 000 will see its annual IMI slip from €600 to €900, roughly a 50 % jump. Properties left degraded face an extra 30 % penalty and those declared vacant for over a year will be charged triple, part of a wider drive to force owners to place empty housing back on the market.

The Municipal View: Funding Ambitions

Mayor Isaltino Morais argues that the extra €17.7 M is essential. The draft budget earmarks €193 M for public housing, €19 M for school upgrades and an expanded social-support network. Officials also stress that 26 % of the taxable base in Oeiras belongs to banks, insurers and large firms, not just families, suggesting the burden will be spread across powerful corporate players. The administration promises a forthcoming “fiscal package” with targeted rebates for vulnerable households, though no details were released.

Opposition Fires Back

The local Socialist Party caucus calls the move a “broken promise”, asserting that the mayor campaigned on maintaining low taxes. Spokesman Bruno Magro labels the hike a “political error” that undercuts families and erodes business confidence. The left-leaning coalition Evoluir Oeiras echoes that criticism, noting that the measure never featured in election literature and could deepen existing inequalities in access to housing. Both groups intend to force a last-minute debate when the proposal reaches the Municipal Assembly later this month.

How Oeiras Compares with its Neighbours

With the new rate, Oeiras now sits 0.134 points above the average of five surrounding councils. Only Cascais comes close at 0.33 %, while Lisbon holds steady at the statutory floor. Analysts estimate that the gap translates into an extra €300 a year for a mid-range flat compared with a similar property over the city border. Critics say the differential could nudge some buyers toward cheaper adjacent markets, though proponents counter that Oeiras’s seafront location, business parks and transport links will continue to justify the premium.

What Analysts Foresee for Families and Business

Independent municipal-finance specialists predict a mixed impact. Landlords may pass the cost onto tenants, exerting fresh pressure on rents already near record highs. Small retailers operating on thin margins fear a drag on cash flow, whereas multinational tenants with long-term leases are expected to absorb the rise more easily. The real concern, advisers say, is psychological: a higher IMI signals that other levies could follow, potentially eroding Oeiras’s brand as a fiscally stable haven.

Looking Ahead: Possible Relief Measures

City hall has floated the idea of means-tested deductions, particularly for large families and seniors on limited pensions. Officials are also studying a graduated rate tied to energy-efficient renovations, hoping to marry fiscal relief with climate goals. Nothing concrete is scheduled for a vote, but insiders hint that amendments could surface during the final budget debate, offering some damage control before the first bills arrive.

The Bigger Picture for Property Owners Across Portugal

Oeiras’s pivot underscores a national dilemma: local governments rely heavily on IMI revenue yet face mounting pressure to expand social programmes. While many councils cling to the minimum, the legal ceiling remains an attractive lever when new revenue streams prove elusive. Home-owners elsewhere in Portugal will watch closely; if Oeiras succeeds in raising funds without sparking an exodus, other municipalities may decide that a 0.45 % rate is politically survivable. For now, residents have little choice but to brace for a more expensive 2026 and hope that the promised reinvestment materialises in concrete improvements to schools, housing and public space.