The IMI or Municipal Property Tax is a tax that is levied on the Tax Asset Value (VPT) of a property. The VPT results from the patrimonial evaluation carried out by the Finance services and is registered in the property's Caderneta Predial. The revenue generated by IMI reverts to the budget of the City Council, of the area where the property is located, and for most councils this tax represents their main source of revenue.
All property owners are subject to the annual payment of this tax. As a single tax, it is necessary to pay IMI for each property you own. At the tax equity value of alltaxable person's buildings the following rates apply:
The IMI focuses on rustic buildings (land located outside an urban area, not classified as building land) mixed (its rustic and urban part cannot be classified as main) and urban (all others.).
And who pays the owner / usufructuary / superficial of the building on December 31st of the year to which it respects. In the case of undivided inheritances, IMI is due for the undivided inheritance represented by the couple head.
The IMI exemption applies exclusively to urban buildings intended for permanent own housing. The owner has 6 months to be able to allocate the acquired property to permanent home.
The request for exemption from IMI must be submitted to the Tax Office where the property is located, within a maximum period of 8 months after the date of execution of the deed of purchase and sale. There is only room for such an exemption for a taxable person or for the same household.
For a property value of up to € 157,500, an exemption from IMI is granted for a period of 6 years. Between € 157,500 and € 236,250 the exemption period from IMI is 3 years. Above this value (€ 236,250) there is no exemption from IMI.
Properties integrated in developments that have been considered of tourist utility are also exempt from IMI. The IMI rates applicable to buildings integrated in open real estate investment funds are reduced by half, as well as those integrated into closed public investment property funds.
The IMI payment dates have been changed recently and from 2019 the tax payment notifications will start to arrive in April, and the payment will have to be made the following month, in May, if you choose the single payment. The notification is sent in writing and through the Finance Portal to the personal account of the property owners.
This tax can be paid in full or in installments, if the amount exceeds € 100. If it is less than 100 €, payment in full , in a single payment, is mandatory . For amounts of IMI greater than 100 €, the taxpayer can choose the single payment or, if desired, make the payment in installments. The options for fractional payment are:
If you choose to pay IMI in installments, the payment months are in May, August and November, depending on the payment method chosen:
The notification received by the owners for payment of IMI contains a reference for payment with the total amount of tax, and another reference for payment of the 1st installment. If the value exceeds € 100, the taxpayer may choose to settle the tax in the intrigue, using the respective reference.Or, you can choose to settle in a phased manner, paying only the 1st installment (as long as the tax amount is greater than € 100) using the 2nd ATM reference.
You also have the option to activate the payment by Direct Debit, through the Finance Portal, with the debit in your bank account being made automatically, within the established deadlines.
After the default, a debt certificate is extracted and a tax enforcement process is initiated, the defaulting taxpayer being notified and “invited” to proceed with the voluntary payment of the debt. The latter has 30 days to do so, from the date of service.
This is a situation that you should avoid at all costs and for several reasons, namely:
|Tax offense||Fine||Compensatory interest||Interest on late payments|
|Lack or delay in delivery of IMT provision||30% to 100% of the tax due||4% / year||
4.825% / year
Of the 3 penalty options, there is one that is applied immediately: interest on late payments. These are calculated using the following formula: missing IMI value x interest rate (annual rate of 4.825% in 2019) x number of days missing ÷ 365 . The number of days is calculated from the date of default until the date of payment of the tax due. However, if the taxpayer regularizes the situation within 30 days, it is usual practice for finances to consider only the date of calculation as the calculation date.
To the missing tax amount, compensatory interest and charges due in the process are added. The amount of the fine, in case of negligence, cannot be less than € 50 (or € 25, in case of reduction of the fine), nor higher than € 45,000, if not otherwise provided by law. However, if the taxpayer pays the tax and is absent in the 30 days following the summons, both the fine and the compensatory interest are usually forgiven.
If, despite all this, the taxpayer does not regularize his situation, the property may be subject to seizure. However, if the house is the home address of the family, the attachment will not be allowed to be auctioned and will be suspended. Except if the dwelling has a tax equity value - VPT greater than € 574,000, or in the case of the property being subject to the maximum rate of IMT.
Requesting a revaluation of the house can help to achieve a reduction of this tax, mainly because the value of the properties has been decreasing in recent years. However, before asking for a revaluation of the property for the purposes of IMI, try to understand if this could bring you benefits and actually represent a reduction in the tax amount. Use the simulators available to calculate the tax amount and ask for the revaluation only if that amount is lower than the amount shown in the property's booklet. In this case, it is advisable that the property book is updated.
You can also use the Montepio website , updated with the latest changes to the law, in order to assess whether or not it is worth requesting a review of your IMI.