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 the IMI owed from the previous year, applicable until 2013 (settled in 2014). If the VPT of your property has been updated (household income less than € 4,898), the IMI can increase only 75 EUR per year.
If it is higher: 1/3 of the IMI resulting from the VPT fixed on the general evaluation fixed subtracting the IMI due in 2011 (or that would be, in the case of exempt buildings).
This limitation does not apply to property:
– evaluated according to the new rules of IMI
– belonging to entities resident in “tax havens”
– that is vacant or ruined
– that changed its owner after December 31 of 2011 (except for transmissions due to death).