Municipal Property Tax (IMI) - 2022

May is the month of payment of the Municipal Property Tax (IMI). It is a tax that is paid every year and that focuses on the tax asset value (VPT) of buildings (rustic, urban or mixed) located in Portugal, whose revenue reverts to their municipalities. Learn everything how to calculate, what payment terms, the fees of each municipality and other important information.

How is IMI calculated to pay?

The calculation of IMI is done by multiplying the VPT (value that the Finances attribute to the property, according to Article 38 of the IMI Code) by the IMI rate of the municipality in which the property is situated, according to the following formula:

IMI payable = VPT x Municipality Tax

It is recalled that IMI rates are fixed annually by the municipalities of the real estate location area and communicated to the TA until December 31 of each year, for application in the collection of the tax in the following year. They are currently within the following range in accordance with Article 112 of the IMI Code:

• Between 0.3% and 0.45% for urban buildings – and this rate may, in the specific circumstances of paragraph 18 of that article, go up to 0.5%;
• Up to 0.8% for rustic buildings.

You can check here the IMI rate of your county for 2022.

Payment terms for IMI 2022

Payment of IMI 2022 can be made at once or up to three installments, depending on the amount. According to Article 120(1) of the IMI Code, the time limits for payment of IMI 2022 are as follows:

If IMI is less than EUR 100:

• Payment will have to be made by May 31 – this is a one-time and paid benefit at once.

If IMI is more than EUR 100 and eur 500 or less:

• Payment of the 1st installment must be made by May 31;
• Payment of the 2nd installment must be made by November 30, 2022.

If IMI exceeds EUR 500:

• Payment of the 1st installment must be made by May 31;
• Payment of the 2nd installment must be made by August 31, 2022;
• Payment of the 3rd installment must be made by November 30, 2022.

In all cases, the taxpayer may choose to liquidate IMI at once in May.

Source: Idealista