The Municipal Property Tax

SERVICES

The Municipal Property Tax

The Municipal Property Tax (IMI) is paid annually and varies depending on the area where the house is located. The amount of this tax is levied on the patrimonial value of the property and may range between 0.3% and 0.45%.

In 2017 an additional IMI tax was created, which is also levied on the Taxable Asset Value (VPT), but only when it exceeds a certain amount.

As stated in paragraph 1 of Article 135 - B of the Municipal Property Tax Code (CIMI), "the additional municipal property tax is levied on the sum of the taxable asset values of the urban buildings located in Portuguese territory that the taxpayer owns."

Who can be covered by this tax?

Owners, whether natural or legal persons, who own urban buildings and/or land for construction in Portuguese territory may be subject to the payment of the additional IMI in case the VPT is high.

What is the taxable value?

The taxable value is calculated by adding the taxable patrimonial values of the buildings owned by the owner as at 1 January of the year to which the additional IMI applies.

In case the owner is a natural person or in case of undivided inheritance, the amount of 600 thousand Euros is deducted from the determined taxable value.

For married or unmarried couples, the taxation of this tax can be joint and the deduction is of one million and two hundred Euros (twice the amount stipulated for natural persons).

Information based on article 135 - F of the CIMI.

When and how to pay?

The additional IMI is assessed by the Tax and Customs Authority in June of the year to which the tax relates and its payment must be made in September of that same year.

Until the end of the month prior to the payment, the services of the Tax and Customs Authority send the collection document with the breakdown of the settlement, the buildings, the shares, the respective taxable patrimonial value and the collection.

Please note: As mentioned in nr. 4 of article 135 - H of the CIMI, if you do not pay the tax within the legally established deadline in the collection document, you will be subject to late payment interest.