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News - Imi Alterations 2019

News - Imi Alterations 2019

 

IMI alterations 2019

financas  thumbThe state budget (Orçamento do Estado, or OE) for 2019 has proposed changes to the payment of IMI (Imposto Municipal sobre Imóveis), often called municipal tax or council tax.

IMI 2019-What is changing?

The percentage of tax applied will follow the existing system, whereby each council sets it´s own rates for IMI, within an agreed framework, which was between 0.35 and 0.45% in 2018.

To give an idea of the differences in values, these are some of the figures for 2018 for urban properties for various councils in the Algarve:

Loulé-0.3%

Lagos-0.35%

Tavira-0.375%

Faro-0.4%

So a property with a VPT (valor patrimonial tributario) or rateable value of €200.000 would pay €600 a year in Loulé, and €800 in Tavira.

Rustic properties pay 0.8% in all councils.

The changes relate to the timing of the payment of IMI. It is proposed that there will be three different payment schemes, and these depend on the value of IMI to be paid.

When the IMI is equal to or less than €100, a single payment will be made in May.

When the IMI is between €100 and €500, two payments will be made, in May and November.

When the IMI is more than €500, three payments will be made, in May, August and November.

When the payment is made in two or three instalments, these will no longer be equal instalments. The first instalment (paid in May) will be €100, with the remaining amounts due spread over the remaining payments.

It is important to pay attention to the new months that payments have to be made, as late payment of IMI will always result in a fine being applied.

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