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Property tax in Portugal

Property tax in Portugal

When buying a house in Portugal, you have to pay an annual tax on your property. The Portuguese property tax – which is called in Portugal: Imposto Municipal sobre Imóveis (IMI) - is a municipal tax. In most cases, the first part is being charged in March and you can pay up to april. 

 

When do you have to pay property tax?

Anyone who is in possession of a house or other real estate in Portugal on the 31st of december of a year is basically liable for the IMI for that all year. If the total amount is between 250 - 500 euros you pay in two installments, if the amount is aobve 500 euros, then you may pay this property tax in three installments: the first part in april.

 

How much tax do you pay on your property?

Each municipality in Portugal uses its own fee for the property tax and can adjust this fee per year. Rates generally vary between 0.2 and 0.8 percent of the financial value of the property (also known as "Valor Patromonial" in Portugal).  Homes that are evaluated before 2004 are subject to a rate between 0.4 and 0.8% of the registered value at the tax office and for homes that are evaluated after 2004 there is a percentage between 0.2% and 0.5% of this registered fiscal value.

 

About which value is property taxes levied?

In Portugal is property taxes levied on the "Valor Patromonial" of the property; also known as the fiscal value for which the property is registered with the tax authorities. 

Can one get an exemption of payment of property taxes?

Yes, if you purchase your property in Portugal for permanent residency in Portugal, you can be exempted from paying property tax according to article 46 of the Estatuto dos Beneficios Fiscais. The exemption can be for a period between 3 to 6 years, depending on the value of the property.