Need help with issues related to buying a property or housing credit? Contact our real estate agents directly at real estate agents or credit intermediation. To understand how IMI works, we will explain it below.

What is the Municipal Property Tax?

The Municipal Property Tax (IMI) is a tax due by property owners for properties and land, which must be settled annually.

According to the IMI code, the tax must be paid by the property owner by December 31 of the year to which it relates. This means that if you bought a property after January 2023, you only have to pay the amount in 2024 (with the obligation to pay this year remaining with the previous owner).

The IMI value is defined based on the Taxable Asset Value (VPT) of the property, registered with the Tax Authority and explicit in the property tax booklet.

Each city sets its own rate, according to a table issued annually by the State with minimum and maximum limits.

How is the IMI payment value calculated?

In this sense, the amount to be paid for IMI is calculated through the rate defined by the municipality where the property is located and on the VPT.

The limits defined by the table that the State enforces annually are determined by the following intervals:

In rustic buildings, such as land outside urban centers not intended for construction or agricultural activity, a maximum tax rate of up to 0.8% may apply.
In urban buildings, such as properties intended for housing, commerce, industry, services, or land for construction, a minimum rate of 0.3% and a maximum of 0.45% apply. In some exceptions, it can go up to 0.5%.

That is, to calculate the amount to be paid for IMI, you must consult the applicable rate in the municipality of your property and multiply the value of the rate applied by the VPT of the property. Visit this link for more information.

In what situations am I exempt from paying IMI?

However, there are cases in which you may be exempt from paying this tax. But in what situations?

It is possible to be entitled to two types of exemption: temporary or permanent. With temporary exemption, you are exempt from paying IMI for 3 years, provided that the VPT of the property is less than 125 thousand euros. However, there are Municipal Councils that also grant temporary exemption in situations of property rehabilitation works, not being a rule applied by all and depending on each one's decision.

For permanent exemption, not only the VPT of the property is at stake, but also the income of the household. So, cases are entitled to exemption where the VPT of the property does not exceed 66,500 euros, and the income of the household does not exceed 2.3 times the current value of the Social Support Index (15,469.85 euros).

IMI family grants discounts

In addition to exemptions, it is also possible to be entitled to some fixed discounts on the IMI to be paid in certain municipalities.

For cases of properties intended for own and permanent housing and with dependents under 25 years old and without income, there is the family IMI.

Therefore, for families with one child, the discount is €20, for families with two children, €40, and for families with three or more children, €70.

What are the deadlines to pay IMI?

IMI must be paid annually, either in installments or in a single payment. But how does this process work? Let's see:

If the value of IMI is less than 100 euros, you must pay it in a single installment in May;
But if the tax amount is between 100 and 500 euros, you can already pay in two installments, in May and November.
And if the amount exceeds 500 euros, it is possible to pay in three installments, in May, August, and November.

It should be noted that the taxpayer always has the option to pay the tax in a single installment, even if the amount exceeds 500 euros.

To proceed with the payment of the tax, pay attention to the letter sent to you by mail as a payment note. But you can also check and pay the amount online on the Finance Portal, under "All Services", searching for "Municipal Property Tax", "Consult Payment Notes", choosing the year 2022.

If you are thinking about buying a property and are already concerned about IMI: don't worry, by using professional services you can have all your doubts clarified. To contact a real estate agency, visit Casa no Minuto and for intermediation of your housing credit, you can rely on Poupança no Minuto.

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