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The Real Estate Tax in 2020

Despite the unusual and troubled year, the Government decided that the IMI - Real Estate Tax would have the same rules as the previous year. There was no postponement on the payment deadlines. Like in 2019, there was the possibility of dividing the total amount into 3 installments, depending on the case of each taxpayer.

 

Photo by: StellrWeb – Unsplash

 

Those who have their own house are already familiar with the fee charged annually by the Tax Authority, calculated by each Municipality. But do you know what the Real Estate Tax (IMI) is? The revenue from this tax goes to the City Councils of the place where your property is located. This is one of the main sources of income for these institutions. Each Municipality stipulates the rate applied to its city, with a maximum between 0.3% and 0.45%, set by the Government. These minimum and maximum percentages have remained the same since 2019. Forty municipalities decided to lower IMI rates in 2020, and this was undoubtedly a significant difference from one year to the next. Only one Municipality increased the tax in 2020, while the others maintained the percentage.

 

Do you know how to calculate the IMI of your property? The Real Estate Tax is levied on the Tributary Patrimonial Value (VPT) of the property. The rate for rustic structures, i.e. plots, is fixed at 0.8%. For urban structures, buildings already built or for building plots, the percentage varies between 0.3% and 0.45%, and as mentioned above, the value is set by each Municipality.

 

Learn how to calculate the Real Estate Tax (IMI) and the Taxable Asset Value (VPT):

 

 

Exemptions may be granted when the taxpayer has an annual income of less than €153,300 and the property has a Tax Asset Value of less than €125,000. If the taxpayer meets these conditions, he will be exempt for three years. Another exemption is for low-income families where the household receives up to 15,295 euros per year, and the VPT is less than 66,500 euros.

 

In May, taxpayers with values up to 100 euros had to pay the IMI for their properties, without the chance to do the payment in a phased manner. For IMIs between 100 euros and 500 euros, they were granted phased payment in two tranches. The first payment took place in May, and the second was at the end of November. IMIs over 500 euros were given the possibility to settle three times:  May, August and the last payment in November. This phased payment method is not compulsory and the full payment can be made in May.

 

In 2020, of the 2.993.493 taxpayers with settlement notes over 100 euros, 480.079 opted for full payment, not following the IMI phased payment option.

 

Do you know all the options where you can pay this tax?

  • Tax Department;
  • Post office;
  • Credit institutions with a protocol with Tax Autority;
  • ATMs;
  • Home Banking.
  •  

 

You can pay IMI in:

  • Cash;
  • Cheques;
  • Bank Debit;
  • Bank transfer.
  •  

 

At this moment, we must always give priority to social distancing. As such, you can make payments through the ATM or Home Banking.

 

To pay by ATM, follow these steps:

 

Payments & Other Services > State and Public Sector > Payments to the State

Then enter the payment details that are in the DUC, and keep the ATM receipt as proof of payment.

Payment over the Internet is safe and fast, and you should only request the payment reference in advance in the Portal das Finanças.

 

 

Is one of your plans for 2021 to build or buy your family home? Find out all the implications of buying a house through bank financing here. To make this new journey quick and easy, please contact Casas do Barlavento so that we can clear up any doubts that may arise.