Understanding IMI Tax in Portugal

What is the IMI Tax in Portugal?

IMI, or Imposto Municipal sobre Imóveis, is the Municipal Property Tax levied on property owners in Portugal. This annual tax applies to both Portuguese residents and non-residents who own property within the country. The tax is based on the Valor Patrimonial Tributário (VPT), which is the assessed value of the property determined by the tax authorities. The VPT considers factors such as the property's size, location, and condition.

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IMI Tax Rates

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The IMI tax rate varies depending on the municipality where the property is located. Municipal councils set the rates, ranging from 0.3% to 0.8% for urban properties and a fixed 0.8% for rural properties.

City IMI Tax Rate

• Lisbon 0.3%

• Porto 0.325%

• Faro 0.35%

• Coimbra 0.35%

• Braga 0.35%

*Please note that these rates are subject to change and you should always check with the relevant municipal council for the latest rates.

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Exemptions and Reductions

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Certain exemptions and reductions are available for IMI tax. These include:

• Primary Residence Exemption: Properties used as primary residences may be eligible for a partial or total exemption from IMI tax.

• Entity Ownership Exemption: Properties owned by certain types of entities, such as charities or public institutions, may be exempt from IMI tax.

• Property Condition Reduction: Properties in poor condition may qualify for a reduction in IMI tax.

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Payment Methods and Deadlines

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The IMI tax is due annually on April 30th. However, there are several payment options available, including:

• Online Payment: Pay through the Portal das Finanças website.

• Bank Payment: Make a payment at any bank branch in Portugal.

• Post Office Payment: Settle the tax at any post office in Portugal.

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Failure to pay the IMI tax by the due date will result in penalties.

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Conclusion

IMI tax is an essential aspect of property ownership in Portugal. Understanding the tax rates, exemptions, payment methods, and deadlines is crucial for property owners to ensure timely and accurate tax payments. Consulting the relevant resources and contacting the local municipal council can provide comprehensive information tailored to your specific property.

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Disclaimer: The guidance above should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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