“IMI” is paid in one go or in several instalments, depending on whether taxation is less or greater than €100. May is the month for single assessments when the tax due is under €100; or for the first instalment, in cases where the amount owed is greater. Second payments are in August when “IMI” exceeds €500. Finally, November is for final payments when taxation falls between €100 - €500 or third instalments if the levy is greater than €500.

“IMI” Update
This year, the value per square metre for real estate rose from €603 to €615 per m², an amount that had not changed since 2010. This criterion is key in determining a property’s Rateable Value (“VPT”) and consequently the value of “IMI”. The amount due is fixed by factors such as location, condition, quality, size and age of the property. These coefficients are updated every three years at which time a revaluation of the property can be requested. The final “IMI” due is determined by the tax rate established by each Municipality between 0.3% to 0.45% for urban buildings and 0.8% for rustic land.

“IMI” drops for 24,000 taxpayers seeking revaluation
More than 90% of the taxpayers requesting a reassessment of their property based on an outdated “VPT” (Tax Asset Value) achieved a reduction in the “IMI” due (Municipal Property Tax). Properties were overvalued by more than €447 million. Updating the VPT (on which the tax rate applies) does not happen automatically. Legislation permits owners to call for a reappraisal three years after the previous one. This request - which is free of charge - can be made directly at the local tax office or via the Finanças Portal.

Additional to “IMI” in 2019
Established in 2017, “AIMI” is a supplementary property tax assessed on higher valued properties, based on the sum of all taxable “urban” real estate (“VPT”). This incremental levy is sometimes euphemistically referred to as a Portuguese Wealth Tax. Urban properties classified as “commercial, industrial or service” and “other” are exempt.

In 2019, AIMI rates are as follows:

Companies (non-residential use by owners/directors; otherwise same as Individuals):
0.4% for total of rateable urban “VPT”s;
Individuals (for couples, double exempt value):
0.7% When the total “VPT” value of all properties is between €600,000 and €1,000,000;
1% For “VPT” real estate totals between
€1,000,000 and €2,000,000;
1.5% For “VPT” total exceeding two million euros (new in 2019).
Assessment of the Additional to IMI is calculated in June referring to real estate holdings on 01 January of each year. Payment is due in September.
Dennis Swing Greene is chairman and International Tax Consultant for euroFINESCOs.a.