The general revaluation of real estate that took place in 2012, resulted in a change in the value of the Property Tax (IMI) for many owners, therefore, the following payment terms were established for 2013: For the same or less than €250,00 euros amounts, payment must be made in April; For higher amounts to €250.00 … Read More
IMI Municipal Property Tax
Municipal Property Tax (IMI) is an annual tax levied by the municipalities on the right of ownership and usage of real estate located in the Portuguese territory.
Which are the coefficients for calculating the taxable assessed value (VPT) in Portugal?
Here is the description of the coefficients to calculate the VPT in Portugal. VPT = Vc x A x Ca x Ci x Cq x Cv -Vc Base value of the buildings = average construction cost per m2 (currently set at € 482.40) + value of the land (25% of that cost). Currently, the Vc … Read More
The Taxable Assessed Value (VPT) for rented buildings in Portugal
The taxable assessed value (VPT) of rented buildings may not exceed 15 times the annual income. To benefit from this limit, the owners must submit the report of the last received rental income until August 31, 2012, and tax identification number of the tenant (model approved by the Ministry of Finances). This report … Read More
How to calculate the tax assessment value (VPT) of your property in Portugal?
When it comes down to paying taxes, it is always good to know how certain values have been calculated. To know the tax assessment value (VPT) of your property in Portugal you will have to take into account the following elements: – gross floor area – the exceeding area to the implantation ground … Read More
How much can the Municipal Property Tax rise in Portugal?
The taxable assessed value (VPT) of urban properties, receives a yearly update in the framework of general evaluations. This can cause a significant increase of the Municipal Property Tax (IMI) in Portugal. There is a regime, however, that limits the increase of the IMI resulting from the VPT update considering the sum of … Read More
IMI exemption for properties of minor taxable assessed value for low-income taxpayers
Portuguese properties of minor taxable assessed value belonging to low-income taxpayers are exempt, in the case of rural and urban properties of taxpayers whose total gross household income (for income tax purposes) does not exceed €13,300.00, and whose total taxable assessed value does not exceed €66,500.00. Exemption is recognized by the property’s local Tax … Read More
Special cases of IMI exemption
In Portugal there are exemptions for properties classified as national monuments or of public interest, municipal value or cultural heritage. This exemption is automatic with notification of the classification as a national monument, or the individual classification as property of public or municipal interest, to be made by the Archaeological and Architectural Heritage Management Institute … Read More
IMI exemption for properties built, expanded, improved or purchased for consideration by emigrants
Properties in Portugal that are built, expanded, improved or purchased for consideration by emigrants are exempt, with verification of the conditions established for permanent primary residences, except for the deadline to allocate these properties to this purpose (residence of emigrants or household).
IMI exemption in residential rental properties
Portuguese urban residential properties that are rented out are exempt for 3 years: properties (or portions thereof) that are rebuilt, expanded, improved or purchased for consideration, if it is the first transfer, for the portion intended for residential renting, if rented within 6 months of the purchase or completion of work. The exemption begins when … Read More
IMI tax exemption for storerooms, pantries and garages
Storerooms, pantries and garages (even when separate) may be exempt from IMI when they are part of the same building or housing complex of urban properties built, expanded, improved or purchased for consideration, and intended to be the permanent primary residence of the taxpayer or his/her household, provided that they are used exclusively by these … Read More