𝟙What is IMI?
The municipal property tax, known in Portugal as IMI - Imposto Municipal sobre Imóveis - is calculated on the basis of the Tributary Property Value (VPT for Valor Patrimonial Tributário, indicated on the caderneta predial) of urban and rural buildings located on Portuguese territory.
IMI percentages vary according to the nature of the property acquired and the municipality in which it is located.
The applicable IMI rate:
varies between 0.3% and 0.45% of the VPT for urban buildings,
is 0.8% for goods belonging to the "prédios rústicos" category.
IMI must be paid by the owners whose names appear in the caderneta predial (land register) on the 31st of December of the year to which the tax relates. Thus, for a purchase made on 27 December 2021, in 2022, the person responsible for paying the IMI for the year 2021 is the person who purchased the property on 27 December.
📅 IMI is an annual tax that must be paid according to the following schedule:
Up to €100: 1 payment, made in May;
More than €100 and less than or equal to €500: 2 payments, in May and November;
More than 500 €: 3 payments, to be paid in May, August and November.
The request for payment of IMI is sent to the taxpayer by post. You can also access it via your personal area on the Portal das Finanças website.
𝟚 What is IMT ?
The IMT - Imposto Municipal sobre as Transmissões onerosas de imóveis - is a municipal tax related to the transfer of properties located on Portuguese territory.
The IMT rate varies according to the nature of the property purchased and its purpose of acquisition. The tax varies from 0% to 8% depending on the tranches.
The IMT is calculated from the value indicated in the deed of purchase (value of the property) or from the VPT (Valor Patrimonial Tributário, which reflects the real value of a property in a given year). The basis of calculation refers to the higher value.
The payment of the IMT must be made by the buyer at the time of the acquisition of the property. Unlike the IMI, which is an annual tax, the IMT is only payable once, at the time of the purchase (Escritura) of a property.
Before signing the deed of acquisition of the property, the purchaser must ask the Portuguese Tax Authority (Autoridade Tributária, AT) for the payment forms (guias) of the IMT and the Imposto do Selo (stamp duty: fixed tax of 0.8%).
💡 Note that in Portugal you will also find the acronym IMT to refer not to a tax on property transactions but to the Instituto da Mobilidade e dos Transportes (http://www.imtonline.pt/), the body responsible for issuing driving licences in Portugal.