IMI (“Imposto Municipal sobre Imoveis”) Municipal Property Tax What is IMI?

 

 

Any owner of a property located in Portugal must pay an annual Property Tax, which is calculated over the VPT (Property Rateable Value). IMI is a local tax due to the municipality where the property is located.
The new IMI Law determines that until 2013, there will be a gradual and general revaluation of all the properties, so the VPT will be much closer to the property actual market value.

 

How is the VPT computed?

The first property valuation is a responsibility of the local tax office, based on a form the buyers must submit and any other elements available. This form, known as “Modelo 1 do IMI”, is provided with the architectural plans approved by the City Hall attached.

Regarding land for construction, a copy of the master plan for the urbanization, or the construction license, approved project of construction, or any document that proves the construction viability must be provided.

The VPT is determined according to the following formula: VPT = Vc x A x Ca x Cl x Cq x Cv

 

Where:

VPT = Property Rateable Value
Vc = Average cost of construction per square meter, plus the average cost of the plot per square meter (which is 25% of the 1average construction cost)
A = Construction area plus the surrounding area
Ca = This coefficient may vary between 0,08 and 1,20
depending on the type of utilization given to the property 2(commercial, industrial, residence,..)
Cl = This is a localization coefficient that may vary between 0,35 and 3, depending if the property is isolated in the countryside or in a high market value location
Cq = This is a quality and comfort coefficient, which varies between 0,5 and 1,7, by adding and subtracting several 3variables
Cv = This is an age coefficient, which varies between 0,40 and 1, depending on the number of years passed since the habitation license was issued or the construction concluded.

1 VC is established by the Government every year. In 2008, VC is 615 Euros.
2 A property used for residential purposes has a coefficient of 1.
3 Such as swimming pool, tennis court, sea or golf views, etc.

 

 



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