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IMI tax ,property tax portugal ,real estate portugal,how to pay taxes portugal

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Read about the real estate market in the Algarve, Lisbon and Portugal. As the leading estate agents on the Algarve and in Portugal we can help you find property for sale in Portugal and find a mortgage.

Paying IMI Tax in Portugal

Paying IMI Tax in Portugal

Updated April 13th, 2020 - The Portuguese government have announced homeowners have until May 31st, 2020 to pay their IMI tax due to COVID-19. Payments options remain the same as below.

 

 

Municipal property tax, otherwise known as IMI, is something all homeowners across Portugal need to process on an annual basis. For each individual this price can vary as there are contributing factors which calculate the final amount owed. 

 

How do you calculate the value of IMI?

Surprisingly, it is a lot simpler than it sounds, all you need to do is multiply the Tax Asset Value (VPT) of the property by the rate applied to the municipality of where your property is located - IMI x VPT fee = Tax payable. So if the rate is 0.4%, and the property is valued at 150,000€, the calculation would be - 0.4% x 150,000€ = 600€. 

 

What are the payment terms?

For 2020, homeowners are now able to pay their IMI in installments if the value is higher than 100€.

As stated in paragraph 1 of article 120 of the IMI Code, the deadlines for making the payment for IMI 2020 are as follows:

  • Up to 100€: single installment, paid in May;
  • More than 100€ and less than 500€: two installments, paid in May and November;
  • From 500€: three installments, paid in May, August and November.

 

Installment options are not mandatory so if you’re able to process the payment in one go then you can. 

 

According to article 121 of the CIMI, the delay in the payment of the IMI implies the payment of interest on late payments, so it is extremely important to remember to pay it within the period defined by law. It is also subject to the payment of a fine, since the lack or delay of tax declarations is considered a tax infraction, as stated in article 116 of the General Regime of Tax Infractions.

 

Ask the IMI reassessment to pay less

Many homeowners are not aware that there is the possibility of having the amount of tax payable decreased as real estate indicators can depreciate. To see if you’re paying more that you should, complete the IMI reassessment request.

 

The equity value (VPT) of your home is calculated from six indicators:

  • Value of m²;
  • Housing area;
  • Type of use;
  • Location;
  • Quality (if you have a garden, pool or garage);
  • Building age.

 

These indicators can change over time which means if your property has depreciated you could be paying more IMI than you should be so it is important to do an IMI simulation to understand whether it is worth asking for a revaluation of the property’s VPT. 

 

The deadline request for a revaluation on your 2020 was December 2019, however you can take advantage of this for 2021.

 

Paying IMI is simple

Portugal has made it easy for homeowners to process their IMI payments, to do so, you just need to go to the nearest CTT branch, Tax Office or a financial institution that works with the Tax Authority. If you have the payment details, you can even make the payment through an ATM or from the comfort of your own home through internet banking.

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