Everything you need to know about the AIMI tax in Portugal

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26 March 2019, Redaction

The Addition to the Municipal Property Tax (Adicional ao Imposto Municipal de Imóveis or AIMI) is, as the name implies, a tax levied on real estate assets. It was created relatively recently, in 2017, and many property owners in Portugal don’t know they have to pay the AIMI. Now, the Portuguese State Budget for 2019 has brought it up to a whole new level.

What is the AIMI tax in Portugal for and who has to pay it? Here is the ultimate guide to learning everything you have to know about the Portuguese AIMI tax.

What is the AIMI?

The AIMI is basically a tax that complements the existing Municipal Property Tax (Imposto Municipal de Imóveis or IMI). Note that the IMI and the AIMI are two different taxes and must be paid separately.

It is a tax that "is levied on the sum of the values of property tax (Valores Patrimoniais Tributários or VPT), to be reported on 1st January of the calendar year to which it relates, for urban housing and buildable land that appear in the land matrix owned by the taxpayer," as a statement from the Portal da Finanças website reads.

What kind of buildings are covered?

The AIMI applies to urban residential buildings and all land destined for construction.

Who has to pay the AIMI?

The AIMI has to be paid by all individuals and legal persons who, as ofo 1st January of each year, appear listed in the land registry as owners, usufructuaries or superficiaries of urban residential buildings or building plots in Portuguese territory.

For the purposes of this tax, any organisation or centre of collective interest that has no legal personhood or undivided estates shall be treated as a legal person (company), to be represented by the head of that group.

When does it have to be paid by?

The AIMI is settled in June each year and paid in one instalment in September, according to the tax authorities.

Who is exempt from paying this tax?

People who don’t have to pay the AIMI include:

  • Owners of real estate allocated to commerce purposes, industry and services;
  • Municipal enterprises;
  • Social housing and construction cooperatives;
  • Residents' associations.

How much AIMI tax do you have to pay?

There are currently 3 levels of AIMI:

  • Tax of 0.7% of the property value for those who have an estate worth between 600,000 euro and one million euro;
  • Rate of 1% for property valued between one million and two million euro;
  • Rate of 1.5% if the total value exceeds two million euro.
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