Our answers on property tax in Portugal
IMI is a tax that must be paid by property owners in Portugal every year in April
The IMI (Municipal Property Tax) consists of a tax levied on the net asset value of real estate located in Portugal. This tax came into force in 2003, replacing the Municipal Contribution, reverting to the respective municipalities.
Who has to pay IMI?
The IMI is paid by the taxable person who is the owner of the property on 31 December of the year to which the tax corresponds.
How is the value of IMI calculated?
This tax is calculated based on the Tax Asset Value (VAT) assigned to the property to which is applied a rate set annually by the municipality (VPT * IMI rate). The VPT is calculated based on several factors such as the construction value per m2, gross area, location, quality, comfort and age of the property, updated every three years.
What is the tax asset value?
The Tax Asset Value (Valor Patrimonial Tributário VPT) of the buildings is the value determined by an assessment made in accordance with the rules of the IMI Code. This value is registered in the building matrix.
What are the IMI fees?
To the VPT of the national real estate the following rates apply: 0,8% for the rustic buildings; Between 0.3% and 0.5% on urban property; 7.5% on properties with fiscal domicile in offshore, regardless of the type of property. Municipalities can increase or reduce the general rates in specific situations, for example in areas that are subject to urban rehabilitation or combat desertification.
IMI Payment deadline
This tax is paid annually through a single collection document (DUC) in the month of April, in one installment for amounts equal to or less than € 250. If the value is set between € 250 and € 500, you can pay in two installments, one in April and one in November. If the amount exceeds € 500 you can pay in three installments in April, July and November.
Legal consequences of not paying IMI on time
If you do not pay the IMI within the deadline established by law established in the collection document, you will pay interest on arrears. The non-payment of an installment or annuity involves the immediate maturity of the remainings and you will have to pay interest.
Where to pay IMI
IMI can be paid at the collection offices of the Finance Services, at the CTT branches, at the branches of credit institutions with protocol for this purpose signed with the Tax and Customs Authority (AT), at ATMs machines or through home banking.
All property owners are exempt from municipal property tax, whose taxable income for the purpose of IRS in the previous year does not exceed 153,300 euros. The exemption is recognized by the head of finance service area for a period of three years if the taxable value of the building does not exceed 125,000 euros.