In this Tuesday’s Renascença Explainer we will talk about taxes, specifically IMI. If you have a house or land, pay attention, because collection notes for Municipal Property Tax are already being issued and the payment deadline starts on May 1st.
Who has to pay IMI?
Everyone who owns properties has to pay IMI. Or rather, that they had on December 31st of the year before payment, in this case in 2023.
But there are exceptions, as in the case of low-income families. If the household’s annual income is less than approximately 15,400 euros and the equity value of the house does not exceed 67,260 euros, these families are entitled to exemption, which is automatically granted by Finance.
There are also other exemptions with a limit of three years that can cover families buying new properties, as long as they meet two conditions: they cannot have an income exceeding 153 thousand euros per year, nor can the house have a valuation above 125 thousand euros. Depending on the municipality, this exemption may be extended for another two years.
There is one more detail: each household can only request the exemption twice, throughout their life.
For those who pay IMI, what are the deadlines that need to be put on the agenda?
It depends. If the IMI amount to be paid does not reach 100 euros, it must be paid in full in May. If it is between 100 and 500 euros, owners can pay in two installments, in May and November.
For those who have an IMI worth more than 500 euros, the tax can be paid in May, August and November.
You can because taxpayers who have IMI of more than 100 euros, if they wish, can also pay the tax in one go. To this end, in the letter that the Tax Authorities sends with the installment to be paid in May, another settlement reference is also indicated for those who want to pay the full amount immediately.
Are there any discounts available if I pay in one go?
It’s a good idea, but there is no discount associated with it. The advantage is to pay in May and not have to think about it anymore.
And if, however, the person does not receive the letter from Finance or has lost it, what can they do?
If you do not have the letter, the taxpayer can obtain payment details on the Finance Portal. Just use your tax identification number and the respective access password and in the search bar write: “Consult IMI billing note”.
Payment can then be made at an ATM, through home banking or by MBway. If you wish, you can also pay at a Finance counter or at a CTT store.
And how much do you pay in IMI?
This depends on the house or land and the municipality where the property is located, because this is a tax that goes to the councils.
IMI rates vary between 0.3% and 0.45%. To find out how much you pay each year, simply multiply the rate defined by the municipality by the asset value of the property.
The Finance Portal also has a tool that allows you to research the rate that each municipality applies.
How does the taxpayer know if they are paying more than they should, for example, as the house ages?
It is included in the calculations, but is not automatically updated by the Tax Authorities. It is called the Old Age coefficient. This coefficient actually decreases as the age of the property increases. But as Finance does not update it, the coefficient that is taken into account by the Tax Authorities is that of the last valuation of the house.
Anyone who has never requested an evaluation is paying IMI as if the house were new. The taxpayer can find out if they are paying more than they should by using a Consumer Protection simulator, which is available on the DECO Proteste website.
For those who still have questions, you can find more information on the Public Services Portal.
