If you own property in Portugal, we hate to break it to you, but you’re likely facing your Property Tax (IMI) bill this May.
Yep, on top of all the bureaucracy Portugal throws at you, there’s a heap of taxes you don’t want to miss, to dodge those awful fines.
What is IMI?
It’s a tax whose rate is set by the municipalities where your property is located, and you can pay it all at once or in installments, depending on the value.
How can I calculate my property’s IMI?
The amount and number of installments are directly related to the taxable property value (VPT) of each property, plus the annual rate set by each municipality, based on the limits set by the Government:
IMI = Taxable Property Value (VPT) x Applicable Rate
To calculate the amount you’ll pay for IMI in 2024 (for the year 2023), you’ll need the Caderneta Predial for each of your rustic and/or urban properties. This document contains all the data needed to know the property’s VPT. You can find it in your personal area on the Finance Portal.
What are the IMI payment deadlines?
In 2024, IMI continues to be paid in one, two, or three installments, depending on the total amount of tax. In any case, May is the month when all non-exempt property owners pay this tax, or its first installment.
Here are the payment deadlines, depending on the IMI amount:
– Up to 100 euros – one installment in May;
– Between 100 and 500 euros – two installments in May and November;
– More than 500 euros – three installments in May, August, and November.
If the IMI amount to be paid is more than 100 euros and you want to pay the tax all at once, you can also do so. The first installment payment notice includes two payment references: one for the first installment and the other for the total tax amount.
Can I be exempt from paying IMI? How?
There are cases where exemptions from paying IMI apply.
Three-year exemption
This exemption is for those who buy a house for a value equal to or less than 125,000 euros and whose family’s taxable income is equal to or less than 153,300 euros. The benefit can be granted twice during the taxpayer’s life.
Permanent exemption
In this case, the exemption applies to taxpayers or households with reduced incomes.
To benefit from this exemption, the gross annual incomes must be equal to or less than 15,295 euros. In addition, the total VPT of the household’s properties must be equal to or less than 66,500 euros (10 times the annual value of the IAS for IMI purposes).
This exemption applies automatically, even if the family has debts to the State, but it is essential to have submitted the last IRS declaration within the respective deadline. If the taxpayer no longer meets the requirements, they lose the right to exemption.
Exemption in case of construction
You can also request an exemption from IMI in case of construction, expansion, or improvement of your own and permanent home. The request is made through the Finance Portal or at the tax offices.
It is important that the property is actually used for this purpose within 6 months after the completion of the intervention, and the taxpayer has 60 days after the end of this period to submit the request.
Can I get a discount on IMI?
Finally, a good news! Yes! If you have children and own a property for your own and permanent residence, you can benefit from the family IMI discount. It’s a fixed deduction in the IMI value, approved annually by the municipalities that have opted to join this benefit.
The discount varies depending on the number of children:
– 20 euros less for families with one child;
– 40 euros less for families with two children;
– 70 euros less for families with three or more children.
For this, the property must be used for the household’s residence, corresponding to the fiscal address, and the children must be under 25 years old and have no income.
