IMI - Municipal Property Tax

The IMI or Municipal Property Tax is a tax levied on the Tax Asset Value (VPT) of a property, which is calculated by finance. This is a tax that reverts to municipalities, and for most municipal councils it represents their main source of revenue. Follow here the news and articles that I am writing about this tax, which is of great interest to anyone who wants to buy a house.

Updated on: 
5. July 2016

Municipal Property Tax (IMI) will get more expensive in 2022 for newly built or rehabilitated homes. After three years without moving, the rate should increase by around 4% for these cases, and all because of the recent escalation in construction costs, which led the Government to update one of the coefficients that serve as the basis for calculating the tax. .

Since 2019, the value of...

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In 2021, property owners will pay less IMI (municipal property tax) in 84 municipalities in the country. According to the legislation that governs this tax, which reverts to the municipal coffers, each municipality has the autonomy to choose which rates to apply, within certain limits. In the case of a home for own housing, the rate can vary between 0.3% (minimum rate) and 0.5% (maximum rate...

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Until now, building books were subject to confidential consultation, and only the legitimate owners of a property were able to consult them. This framework of confidentiality remains, but an exception was made for lawyers and solicitors, who can now consult them when it comes to matters related to the actual interest of their clients. For example, properties that adhere to those belonging to...

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So, here are the main tax changes for the current budget:

Additional to the Municipal Property Tax (AIMI)

The big news, also known as "Mortágua Tax", due to the way it was announced, this new tax is not really a new tax as it replaces, according to new models, the previous stamp duty additional to IMI, in force since 2014 ( 1% for VPT greater than 1 million euros)....

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Among the well-known municipalities are Porto, Covilhã, Lisbon, Cascais, Sintra and Almada. In other words, if you own a house in ruins, or because you have been living for more than a year, you will have to pay the increased IMI tax, the value of which will be three times what you would normally pay.

In addition to this penalty that triples the value of IMI, there is yet another clause...

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I recall that a possible motivation for this downward revision is that 2017 will be an election year for local authorities and it is common for these casualties, even if they are mostly in the order of 1 or 2 tenths, to precede this type of event.

A revealing fact of this trend is that no municipality has decided to increase the IMI rate. According to the figures already known, more...

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Advantages in the IRS

In the sale of a property, which has undergone rehabilitation works by the owner (resident in Portuguese territory), the minimum rate (5%) will be applied in the calculation of the Personal Income Tax-IRS to the resulting capital gains. This tax benefit is only valid for properties located within the Urban Rehabilitation Areas and is expected at least...

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Changing the tax address, which previously could be done in a simple way through the citizen's portal, is a process that is now more difficult and directly related to the change of address of the citizen card.

Why change the tax address?

Firstly, under the terms of the law, it is mandatory to notify the taxpayer's tax address to the tax administration. In case of non-compliance...

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