How to pay IMI - Property tax in Portugal
If you own property or land in Portugal, you will be liable to pay Property Tax, - 'IMI' (‘Imposto Municipal sobre Imóveis’) every year. IMI is based on the registered tax value of the property, not to be confused with the sale price.
How is the IMI calculated?
IMI - the property tax is calculated based on the registered Tax Asset Value of the property (VPT - Valor Patrimonial) attributed to the property to which is applied a rate set annually by the municipality (VPT x IMI rate). The VPT is calculated on the basis of various factors such as; the construction value per square meter, gross floor area, location, quality, comfort and property age, updated every three years.
Who determines the IMI rates?
The municipalities decide each year, which rate to apply in their council. This needs to be between 0.2% and 0.8% for buildings and 0.8% for plots (rustic property). Properties with tax domicile in “offshore” are taxed at 7.5%, regardless of the type of property.
Who pays IMI?
The registered owners of the property as of the 31st of December of the previous year are liable to pay IMI for that year. This means that if you bought your property in December 2022 you are liable to pay the IMI invoice in 2023 which is regarding the period of 01/01/2022 to 31/12/2022.
And, if you sold your property at the beginning of 2023, you will still need to pay the IMI in 2023, regarding the year of 2022. Please note that this tax is always related to the previous year.
Each person registered as an owner of the property will receive an IMI bill with their share of the amount due. For example: if there are more than one owner, i.e. (a couple married under a pre-nuptial agreement, are both equal owners 50/50 of the property in Portugal, and will both receive a bill for their 50% based on the total amount to pay
IMI payment deadlines:
The IMI bill will be issued in March and should be paid by the deadline indicated on your bill to avoid late payment fines. Payment dates differ depending on the bill amount, and can be paid all at once or in instalments, as follows:
- Up to €250, single instalment to pay in April
- Between €250 and €500, 2 instalments to pay in April and November
- from €500 and over, 3 instalments to pay in April, July and November
Please note: Payment in instalments is not compulsory. If you prefer, you may pay the tax in one lump sum. (in your invoice on the botom, is the full amount and a reference number to use when pay in full).
And if you do not pay within the period specified in your bill, you will pay interest on arrears. If the non-payment persists your property can be seized.
How do I receive this bill?
The IMI bill will be sent by post to your fiscal address (the address registered to your fiscal number, or NIF) however, you can view and pay your IMI bill online via the Finanças website, www.portaldasfinancas.gov.pt > but only if you are registered and have a password for it .
Where and how can the IMI Tax be paid?
You can pay it at:
- the tax office (in person or online)
- CTT office (the post office)
- ATM (Multibanco)
- Through your Portuguese online banking
- From a non-Portuguese bank account.
How to pay via your Portuguese bank online - Your reference code, ’Referéncia de Pagamento’, is unique and linked to your registered fiscal information, making the process of payment through your Portuguese bank account quick and hassle-free. All you will need to do is locate the following on your banking website:
Click on Payments, ‘Pagamentos’,
Click on State, ‘Estado’,
Click on Taxes, ‘Impostos’.
You will then be prompted to enter your “reference code” (15 digit number from the bottom left side of invoice).
Enter the amount €.
Enter Fiscal number (top left 9 digits) and click next
Once you have confirmed payment, make sure that you save a copy of your completed transaction receipt for your records.
How to pay from a non-Portuguese bank account:
Make a transfer from your bank with the following information:
- Your Portuguese fiscal number
- “Referencia para Pagamento" - (the reference number a 15 digit number from the bottom left side on your invoice )
To the following account:
Creditor´s name: Autoridade Tributaria e Aduaneira
Bank account number: 83 69 27
IBAN: PT500 781 00190 000000836927
Name of the Bank: Institudo de Gestão da Tesouraria e do Credito Publico
SWIFT Code: IGCPPTPL
For more information you can download a short guide on How to pay your portuguese taxes in Portugal and How To Pay Your Portuguese Taxes From Abroad HERE