"The average construction value per square meter is set at 570 euros, for the purposes of Article 39 of the Municipal Property Tax Code, to be in force in the year 2026," reads the decree published in the Diário da República (Official Gazette).

The rules defined by the IMI Code determine that "the base value of buildings (Vc) corresponds to the average construction value per square meter, plus the value per square meter of the building's land, fixed at 25% of that value." The average construction value is determined taking into account, in particular, "the direct and indirect costs incurred in the construction of the building, such as those related to materials, labour, equipment, administration, energy, communications, and other consumables."

The price per square meter of construction is one of the elements that makes up the calculation formula for the urban property valuation system and, consequently, the determination of its taxable market value (VTP), on which the IMI rate is applied.

Although it is one of the elements that contributes to the determination of the VTP of properties, this price is not automatically applied, being reflected only in new constructions or in properties subject to modification or reconstruction, or following a new valuation.

The price per square meter for the purpose of determining the base value of built properties has varied. It was set at €600 in 2003 and 2004, rose to €612.5 in 2005 and to €615 in 2006 – a value at which it remained until 2008.

Then, in 2009, due to the effects of the financial and economic crisis that were already beginning to be felt, it fell to €609. A year later, it registered another drop, to €603, a level where it remained frozen until 2018, having risen to €615 in 2019, a value that remained until 2021. In 2022, it rose to €640 and the following year to €665, where it remained until this year.