What is the Municipal Property Tax (IMI)?
The Municipal Property Tax (IMI) is an annual tax levied on the taxable value of real estate properties in Portugal. This tax is payable by the owners of residential, commercial properties, and land.
How is the IMI calculated?
The IMI value is calculated based on the Taxable Property Value (VPT) of the property, which is determined by the Tax Authority (AT). The IMI rate ranges from 0.3% to 0.45% for urban properties and can go up to 0.8% for rural properties. Local municipalities have the authority to set the applicable rate within these limits.
When do I have to pay the IMI?
IMI payments are made annually and can be split into installments depending on the total amount due.
- For amounts up to €100, payment is made in a single installment in May.
- For amounts between €100 and €500, payment is split into two installments, in May and November.
- For amounts over €500, payment is divided into three installments, in May, August, and November.
How can I pay the IMI?
You can find the payment details on the Finance Portal. IMI can be paid through various methods including ATMs using the provided payment reference, through home banking services offered by your bank, directly at Tax Authority offices, or at any CTT (postal services) location.
What happens if I don’t pay the IMI on time?
Failing to pay the IMI on time can result in interest charges and the enforced collection of the debt, which may include asset seizure.
Are there any benefits or exemptions from the IMI?
Yes, there are various exemptions and tax benefits related to IMI. Families with low income and limited real estate assets may qualify for a temporary exemption. Properties designated for urban rehabilitation can benefit from an IMI exemption for three years, among other specific conditions.
Can I contest the IMI value?
Yes, if you disagree with the Taxable Property Value (VPT) assigned to your property, you can request a reassessment from the Tax Authority. This process involves submitting a complaint and possibly an evaluation by experts.
Reis & Pellicano is available to provide legal advice on IMI-related matters and help clarify any specific questions you might have.
The information provided does not substitute for legal advice.
