IMI in 2019: Real Estate Tax Changes
If you own a property in Portugal, you should know the changes in the instalments, payment deadlines and tax increases proposed in the State Budget for 2019.
• Changes to the minimum threshold to pay IMI in instalments
The amount from which you can split the tax settlement, without additional interest, has been reduced from €250 to €100. You can now pay in two tax instalments between €100 and €500 and three if the value of IMI is more than €500.
• Deadline change
Billing note submission
Beginning in 2019, the real estate tax settlement note will be made from February to April; this date is an extension to the current term from February to March. The Customs Tax Authority will send the IMI billing note, in addition to making it available in the Finance Portal until 30th April.
New payment dates
In turn, the settlement of IMI will have another month to be made, that is, payment until May. Therefore:
o One instalment - Up to €100 of IMI the amount needs to be paid, in full, by the end of May
o Two instalments - from €100 to €500 the payments will have to be made in May and November
o Three instalments - IMI over €500 settlement will have to be made in the following months: May, August and November.
• New band in AIMI
The additional (adicional) Municipal Property Tax will have a new band in 2019. This additional fee to IMI, which came into force in 2017, charges an extra percentage to property owners who have a higher equity value, in this case, those which exceed €600,000. To date the rate was 0.7% on the taxable amount for properties above €600,000 and 1% when the equity value exceeds €1 million. For owners of a property exceeding €2 million a new band has been introduced – at a rate of 1,5% on the tax base.
Read also: State Budget 2017 - Additional to Property Tax
• Property tax increase for unoccupied buildings
The 2019 State Budget foresees the increase of IMI for building degraded in "urban pressure zones". The owners of vacant buildings will see their IMI aggravated between 6 and 12 times. Read the article Forced lease regime and property tax increase for unoccupied buildings which explains this law better and the rate applied.
• Revaluation of the Municipal Property Tax (IMI)
Since the 1st of January 2019, the price per square meter has increased and has impacted on new property valuation requests. This price is relevant in determining the tax asset value (VPT) of a property, and consequently on the Municipal Property Tax rate. We user the following formula to calculate the IMI:
The formula to find the IMI:
IMI = Tax Asset Value (VPT) x Applicable rate
Check also: Understanding all the costs associated with property acquisition
Therefore, if you want to request an update, Casas do Barlavento advises you to do a simulation first, since the owner can only ask for a revaluation after 3 years. These new orders already include the new prices per square meter, which was set by the Tax Office at €615.
We leave below the free DECO simulator that confirms if you are paying the fair value of IMI - https://www.deco.proteste.pt/campanhas/paguemenosimi/
Shortly before the payment of the Municipal Property Tax, we will share the latest changes with you, so you know everything about your home.