According to the Financial Yearbook of Portuguese Municipalities 2022, tax collection was the main income of municipalities in 2022, with an increase of 12.8%, for a total of 3,892 million euros (ME) in 2022, 441.3 ME more than expected.

That year, each inhabitant paid, on average, 271 euros in direct municipal taxes.

Highest rates

Of the 10 municipalities with the most direct tax revenue per inhabitant, seven are located in the Algarve. However, this may not mean that residents pay more taxes than those in other municipalities, but that there will be significant revenue from non-residents, namely IMI (Municipal Property Tax) and IMT (Municipal Tax on Onerous Property Transfers).

These 10 municipalities with the highest rate of direct tax revenue per inhabitant are Grândola (Setúbal), Lisbon, Óbidos (Leiria) and Loulé, Lagos, Vila do Bispo, Lagoa, Albufeira, Castro Marim and Aljezur, all in the district of Faro.

In global terms, for the 308 municipalities, IMT collection alone increased +351.5 ME (+26.1%) in 2022 compared to the previous year, for a total of 1,696.5 ME, and representing 43.8% of the total amount of direct taxes levied.

For the first time, IMT collection surpassed IMI collection, it is highlighted.

The IMI also resumed its upward trend, growing by around 0.5% and recording revenue of 1,488.3 ME (+8.1 ME), contributing 38.4% to the total direct taxes collected.

IMI collection increased in all districts, with emphasis on Lisbon (+26%) and Porto (+15.1%). Beja, Bragança and Portalegre were the districts with the lowest IMI growth rate (with a variation rate of +0.8%).