How is IMT paid?

 

 

Your solicitor will usually pay the IMT before the contract is signed. The following elements will be supplied to the local tax office:

-Identification of the Buyer(s)
-Identification of the Seller(s)
-Description of the property
-Value at which the property is transacted

 

The tax office will then compute the due IMT and produce a document for payment purposes. After being paid and stamped, this document will be presented at the notary as a proof of the tax payment.

Whenever IMT is paid, and for any reasons the deal is not carried through, you may request the refund of the tax.

The annulment of IMT, when the taxable transmission of property is not carried through, may be requested within three years from the IMT payment date, by filing a formal request to the Revenue.

 

May I be subject to any tax inspection?

Whenever there is any omission of assets or values subject to taxation, or reliable indications of misconduct with the intent of reducing the amount of tax to be paid, the Portuguese Revenue will perform the necessary corrections, so an additional amount of tax will be due.

The Government (usually through the Town Halls) may as well exert the right of preference on the purchase of the property if the value declared in the deed is very low when compared to its market price.

The Portuguese Revenue has several mechanisms available to verify whether the due IMT has been effectively discharged.

 

VPT

VPT is always rounded up to the superior decimal figure. (e.g. If the value obtained is 340.253,35€, the VPT will be 340.260€).

The preamble of the IMI Code refers that the VPT should be 70% to 80% of the property market value; however, there are variations in many specific situations.

 

What are the applicable rates for IMI?

IMI rates vary according to the nature of the property (Urban or Rustic).
Depending if the Portuguese Revenue evaluated the property before or after the new Property Tax Legislation (12th November of 2003) _ which enacted the IMI Code _ the urban properties may be subject to two different rates.
Note that all properties registered at the local tax office or purchased after 1st of December 2003 have been valuated under the new IMI laws.

The IMI rates are stated in the table below:

For properties constituted by both rustic and urban elements, each VPT is taxed at the corresponding rate.
The rate interval for the urban properties allows each Town Hall to decide what rate to apply to the urban properties located in their municipality. The IMI rates are defined yearly, within the above-mentioned legal intervals.

 

 



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