The payment of IMI (Municipal Property Tax): What it is and how it works. IMI is the responsibility of anyone who owns property in Portugal. This tax is levied on the value of buildings and land and is collected every year. IMI is calculated and managed by Tax AuthorityBut the fees are set by each municipality, which means they vary from municipality to municipality.

Who pays the IMI?

Any owner of a property, be it a flat, house or plot of land, is liable to pay IMI. This tax is compulsory and is levied directly on the property's taxable value, i.e. the value that the tax authorities assign to the property, which may be different from the market value.

The amount of IMI depends on two main factors:

• The property's tax value.
• The IMI rate applied by the municipality where the property is located.

How is IMI calculated?

IMI is not a fixed amount. It depends on the type of property and the tax rate decided by the municipality. For rustic buildings (land), the rate is always 0.8%. For urban properties (houses and buildings), the rate varies between 0.3% and 0.45%, according to the decision of the local council.

When is IMI paid?

IMI is paid once a year, usually in May, but can be split into up to three instalments, depending on the amount of tax:

• For amounts under 100 euros, payment is made in a single instalment in May.
• For amounts between 100 and 500 euros, the payment is split into two instalments, paid in May and November.
• For amounts over 500 euros, payment is made in three instalments, paid in May, August and November.

Owners can choose to pay the tax in full at the first notification in May. This option makes the process easier, but it is always necessary to check the payment schedule to avoid delays.

What Happens in the Event of a Delay?

It's important to pay attention to the payment dates to avoid fines and interest. If the IMI is not paid on time, the Tax Authority may impose penalties and the amount owed will be updated with interest on arrears. In addition, an IMI debt can complicate future financial operations related to the property.

The Application of Aggravated Fees

Municipalities also have the option of applying higher rates for vacant or dilapidated properties. These higher rates are intended to encourage owners to put their property to good use or rehabilitate it. Each municipality decides whether or not to apply these increased rates.

Why is it important to pay IMI?

The payment of IMI is one of the main sources of revenue for Portuguese municipalities. This amount is used to finance public services and infrastructure, such as roads, parks and public lighting, and contributes to local development. Therefore, paying this tax is essential for the well-being of communities.

If you're a property owner, find out about your IMI and make sure you pay it on time. This way, you'll avoid problems with the tax authorities and contribute to the development of your municipality. And if you need help managing your taxes or accounting issues, Serro & Andrade offers a specialised service to help you with all your tax and financial obligations.

If you're a property owner, find out about your IMI and make sure you pay it on time. This way, you'll avoid problems with the tax authorities and contribute to the development of your municipality. And if you need help managing your taxes or accounting issues, the Serro & Andrade offers a specialised service to help you with all your tax and financial obligations.