I did not pay the IMI, now what?

Are you concerned about your wallet and need to increase your monthly budget? Look to save with your credits and insurance... Poupança no Minuto can help you, through a free and personalized service, to review or transfer your expenses. Contact us, or first understand the legal implications if you fail to pay IMI.

What are the legal consequences if you don't pay the property tax?

In case you forgot to pay the Property Municipal Tax (IMI), you are subject to legal consequences before the Tax and Customs Authority (Finances).

From the moment payment fails, a debt certificate is issued in your name, followed by a tax execution process.

Payment of late interest  

By failing to pay the IMI, the Tax Office sends a notification letter to your address, advising that you have 30 days to settle the debt. If you do not pay within this period, procedural costs and late fees will be added.

If the amount is not settled within 30 days of voluntary payment, without notice to the Tax Authorities, the late interest rate continues to increase significantly. In 2023, the late interest rate is set at 5.997%.  

In addition, it is subject to the seizure of its property. If it is a high-value property, or its purpose is not for permanent own dwelling, the property may even be judicially sold to pay off the debt.  

Loss of the right to fractionate installments 

Another consequence that arises from non-payment of IMI is the loss of the right to installment payments.

In other words, if you are entitled to pay the Property Tax in more than one installment and the amount exceeds 100 euros, by missing a payment, you will no longer be able to split the amount.

Therefore, not paying an installment of IMI implies that you have to immediately pay all the remaining ones when settling the debt.  

How to regularize the debt? 

The debt can be settled through the Finance Portal, or in person at a Finance office.

Upon entering your profile on the Portal das Finanças online, if you have a debt in progress, a notification will appear on the first page to notify you.

Upon entering the notification, you have access to the outstanding balance, including procedural costs and late payment interest up to the date. You can settle the amount through bank reference.  

The ideal scenario should be to settle the debt as soon as the non-compliance letter is received at home, within the next 30 days.

When should IMI be paid?

IMI is a tax paid annually by all taxpayers who own property or land, personally or under a company, in the previous year. This can be settled through installments or not, depending on the amount to be paid. 

This varies depending on:  

• If the IMI value is less than 100 euros, you have to pay in a single installment in May; 
• If the IMI value is between 100 and 500 euros, you must pay in two installments, in May and November.
• And if the property tax value exceeds 500 euros, it must be paid in three installments, in May, August, and November.

However, even if the amount of IMI to be settled is higher than 100, the taxpayer can decide to pay the total amount in a single installment in May.

How not to pay IMI?

But there are cases in which, legally, you may not have to pay property tax: if you are exempt from it.

There are two types of exemption: temporary and permanent. The temporary exemption lasts for a period of 3 years, and occurs in cases where the Taxable Asset Value (VPT) of the property is less than 125 thousand euros. It can also be granted by Municipalities when there are rehabilitation works on a property.

The permanent exemption depends on the VPT, but also on the family income: families are entitled where the VPT of the property does not exceed 66,500 euros, and the incomes do not exceed 2.3 times the current value of the IAS - Indexante dos Apoios Sociais (15,469.85).

Is this your case? You have to settle IMI, but the money doesn't stretch? It can stretch, if you save with the installments of your loans and insurance. Find out how by talking to us!