IMI: 15% of the Chambers lower tax. only two increase

This year, several City Councils decided to lower the Municipal Property Tax (IMI). Out of a total of 308 municipalities, 46 implemented reductions in the applied rate and eight started to provide (or extended) deductions per household. But there are also aggravations. Two City Councils increased the tax and six reduced or eliminated household deductions. If you have your own house, the most likely thing is to pay property tax. If this is the case, find out how much this year’s value will be and see if your municipality has lowered, increased or maintained the tax. Calculate IMI 2023

46 Chambers lower the IMI rate

Every year, City Councils decide how much they are going to charge their residents for IMI. This is a tax that helps finance municipalities, so they have some decision-making power. This is provided that the tax varies between 0.3% and 0.45% on the Tributary Patrimonial Value (VPT) for urban buildings (it being possible for the rate to be 0.5%, in “specific circumstances”). As for rural properties, the tax amount is fixed at 0.8% of the VPT. This year, 46 Municipal Councils reduced the tax to be applied, according to the compilation of data by Doutor of the Finance Portal. Find out if you will benefit from any reduction compared to last year. The municipalities that reduced the rate were:
Want to pay less IMI next year? Alcanena, Alcochete, Alfândega da Fé, Alijó, Almada, Almeirim, Barcelos, Belmonte, Borba, Cadaval, Constância, Covilhã, Évora, Fornos de Algodres, Grândola, Ílhavo, Lagos, Loures, Maia, Mangualde, Mértola, Montijo, Nordeste, Odivelas, Ourique, Palmela, Peniche, Peso da Régua, Portalegre, Portimão, Póvoa do Lanhoso, Resende, Santarém, Santiago do Cacém, Seia, Seixal, Sobral de Monte Agraço, Tavira, Tomar, Torres Novas, Trofa, Valongo, Vendas Novas , Viana do Castelo, Vila Franca do Campo and Vila Nova Famalicão. These are the Councils that announced the reduction of the IMI rate. But there were other municipalities that started to give deductions per household or increased the scope of deductions. At issue is a reduction in IMI of 20 euros when there is one child, 40 euros when there are two children and 70 euros when there are three children. There are eight councils in this situation: Amarante, Coimbra, Figueiró dos Vinhos, Grândola, Marco de Canavezes, Olhão, Paredes de Coura and Porto Santo.

Two municipalities increase IMI and six withdraw deductions for children

Although the overwhelming majority of municipalities did not change the IMI, there are two that decided to increase the rate to be applied: Tábua and Matosinhos. In the case of Tábua, the autarchy changed from a rate of 0.3% (the minimum practiced) to 0.35%. Matosinhos, on the other hand, increased from 0.325% to 0.375%. In addition to these increases, there were also six municipalities that decided to eliminate or reduce household deductions. They were: Alvaiázere, Elvas, Montalegre, Penamacor, Ponte da Barca and Setúbal.

How much do IMI pay

THE amount payable for IMI depends on several factors: Tax Asset Value (VPT), ​​economic situation of the household (which may give rise to exemption), type of property and location. Municipal Councils decide which rate will be applied to their residents, within a range defined by the Government. So, fees can vary between 0.3% and 0.45% on VPT for urban buildings. The same is to say that a property worth 100 thousand euros will have to pay an IMI between 300 euros and 450 euros. “specific circumstances”, amount to 0.5%. Currently, only Vila Real de Santo António charges a rate of 0.5%. rustic buildings, the IMI rate to be applied is only 0.8%.Also read: IMI: A guide with everything you need to know

Simulate the amount of IMI to be paid

If you own a home and pay IMI, find out what will be the amount to be paid this year. The IMI Simulator will help you understand how much you will pay and how you can split the payment. Payment in installments depends on the total amount of IMI. Thus, if the tax to be paid is 100 euros, it can only be paid in one go and that payment will take place in May. If the IMI is between 100 and 500 euros, it can be divided into two equal installments (greater and November). If the tax exceeds 500 euros, it is possible to pay it three times (May, August and November). Also read: Can I pay the IMI all at once?

IMI rises for new homes in 2023

IMI is calculated based on the Tributary Asset Value (VPT), ​​with the rate that is determined to be levied on this value. Since the VPT meets some requirements for its calculation. Among them is the definition of the average value of construction per square meter, which is defined by the Government. The Executive, led by António Costa, determined this year an increase in average building value per square meter from 512 euros to 532 euros, through Ordinance no. 7-A/2023. The increase is 3.9%, after last year’s 4.1% increase. This value serves as the basis for calculating the VPT for new construction, as well as rehabilitation or revaluation of properties. Read more: Do you pay IMI? Find out if you have to pay AIMI

Who is exempt?

There are some cases where it is possible benefit from exemption from the payment of IMI. Some cases are temporary exemptions, others permanent. The value of the property is one of the parameters considered. If the VPT of the property is up to 125 thousand euros, it is possible to obtain a exemption from payment of IMI for three years. It should be noted that the value that is considered for the calculation of the IMI is the VPT, and not the price paid for the property. Some Municipal Councils also grant exemption for three years when rehabilitation works are carried out on the property. These situations are defined by each Chamber, and there is no transversal rule. If the VPT of the property acquired is up to 66,500 euros and the household income does not exceed 15,469.85 euros (the equivalent of 2.3 times the IAS 2023 – 480.43 euros – multiplied by 14 months), there are permanent exemption the payment of IMI. This situation will only change if the household’s income increases. Also read: IMI Model 1: how to fill in to request a property revaluation