Please note: April is coming and with it the payment of the annual property tax in Portugal (IMI)

For residents of Portugal, or property owners who invest in Portugal, the annual surprise is expected to arrive in the mail next week. This is of course the annual payment of municipal taxes on the property (equivalent to the Israeli property tax) which is called imi. Want to know more about the rates and changes that have been in the last year? Read below. How is the tax calculated? The tax is calculated based on the registered value of the property in the Portuguese Tax Authority (VPT) – or in fact the valuation made of the property by the tax authorities. The formula for calculating the IMI is as follows: VPT * IMI TAX RATE. Note that the IMI value varies from city to city and in some areas it is even possible to get different exemptions which will reduce the amount paid. The upper threshold for IMI municipal assets is 0.45% and the lower threshold is 0.3%. For example, in Lisbon the rate is the minimum rate of 0.3%, while in Porto the rate is 0.324%. It is important to note that in rural areas can reach as high as 0.8%. In practice it is possible to relax, the average annual amount paid by the property owner in Portugal is 183 euros. So when do you have to pay? Well, as we wrote at the beginning of April, the envelopes start to arrive, but the date for payment varies in relation to the amount of tax, for example: Up to 100 euros – must be paid in May in one payment; Between 100 and 500 euros – 2 payments – one in May and one in November; Over 500 euros – 3 payments – May, August and November. Please note that you can pay in one payment and do not have to pay in installments as indicated above. So how do you pay? It is possible to pay at the tax authority (physically or on site), post offices (CTT) or at selected banks that receive tax payments. The payment can be transferred by bank transfer, cash, check or one payment on credit. And what about exemptions? There are a number of exemptions according to the following criteria: Permanent full exemption – for those with low incomes up to 15,295 euros per year. The value of the property is up to 66,500 euros. Temporary full exemption – valid for 3 years for those with an annual income of less than 153,300 euros and a property value of up to 125,000 euros. Properties intended for renovation – exemption between 3 and 5 years on request. Do not forget to pay on time!