Positive Signal! Braga Approves Property Tax Reduction
The Braga City Council has approved a reduction in the Municipal Property Tax (IMI) rate for urban buildings, lowering it from 0.33% to 0.32% starting in 2026. This measure will reduce municipal revenue by approximately €1.1 million.
According to Mayor João Rodrigues, the tax cut is grounded in principles of fiscal fairness and financial responsibility, ensuring it will not compromise the city’s ability to maintain 'high-quality public services, support the most vulnerable, and continue investing in urban development.'
The mayor emphasized: 'We are not choosing between tax cuts and public works. We are opting for prudent governance that allows both to proceed in parallel. We want Braga to function well, keep developing, and care for its citizens—without constantly asking more from those who already pay all their taxes.'
The city government states that its fiscal policy prioritizes housing and urban regeneration, with a focus on restoring and preserving cultural heritage, encouraging improvements to the housing stock, and preventing further deterioration of buildings.
In an official statement, the municipality affirmed: 'The city hall maintains protective benefits and mechanisms for households—especially for primary residences—and sends a clear message: citizens must take responsibility for the city. Those who invest in property rehabilitation will be incentivized; those who let properties decay will be held accountable.'
Incentive Measures
'Those who contribute to urban renewal and revitalization deserve rewards; those who allow urban decay—endangering lives and property—should not be rewarded. Braga wants more quality housing, more regeneration projects, and better-maintained urban spaces,' he stated.
During the same meeting, the City Council decided to maintain the income tax surcharge rate at 3%, with all opposition councilors abstaining from the vote.
The Socialist Party (PS), Iniciativa Liberal, and the ‘Braga com Amor’ party proposed lowering the rate to 2.75%, acknowledging this would reduce municipal revenue by about €800,000. They requested a vote on the issue at the next meeting, but the mayor remained firm and refused to concede.
Although numerically modest, this decision sends a clear and positive policy signal to the market: Braga’s municipal government, while maintaining fiscal discipline, has deliberately chosen to reduce property holding costs and encourage urban renewal and improved housing quality.
This shows that the city is not relying on higher taxation to fund development. Instead, it uses targeted fiscal policy to support responsible real estate investment and long-term urban growth. For investors, this stable, predictable, and strategically planned governance approach holds greater value than one-off, large-scale tax cuts.