Municipal property tax: find out the new rates in Portugal for 2020

This year, most municipalities will charge the minimum rate of Municipal Property Tax, corresponding to 0.3%

Find out the new rates to be applied by municipalities to property owners /
9 January 2020, Redaction

Every year, municipalities have to determine and communicate to the Finance Department by December 31st, the amount of Municipal Property Tax (IMI) for real estate they intend to charge owners in their respective municipalities. For 2020, most council areas have decided to apply the minimum rate, corresponding to 0.3%.

Along the same lines, at least 51% of the municipalities will apply the minimum property tax rate to their residents, corresponding to 0.3%, according to the Portuguese newspaper Jornal de Negócios, based on data collected by “Portal das Finanças”, the government finance portal, with seven municipalities still to be determined. Within the total, there are 18% that have opted for rates equal to or less than 0.35% and only 12 municipalities will apply the maximum tax rate of 0.45%.

Looking at the 301 municipalities with data already calculated - there are no cases of tax increases, with 254 chambers keeping their rate unchanged. On the contrary, 15%, a group of 47 areas have opted to reduce the rate, even if in many cases the reduction does not reach a tenth, as the daily newspaper indicates.

On the other hand, it is anticipated that properties vacant for more than a year may have to pay triple the amount of property tax, if the municipality so desires. If the properties are located in areas of urban pressure, the penalty may imply a six-fold payment, a measure already decided by some municipalities, namely that of Lisbon.

How is municipal property tax paid?

Municipal property tax is to be paid each year and always refers to the previous year, meaning the owner of the property is responsible for the respective payment on 31st December. In 2019 the payment rules were changed and payment in three instalments is also now admissible.

Therefore, as the newspaper reminds us, settlement notes should begin to arrive at owners' mailboxes during the month of April so that the corresponding amount of tax can be paid during May. If the amount paid is less than 100 euros, it should be paid in one instalment. If it exceeds this amount, but is less than 500 euros, it should then be paid in two instalments, one in May and one in August. If the tax is more than 500 euros, then there will be a third instalment in November. In any case, and if the owner wants, the full amount of the tax can be paid immediately in the first instalment.

Information based on: Metade das câmaras vão dar taxa mínima de IMI (Jornal de negócios)

Ready to find the house of your dreams?

Ready to find the house of your dreams?

Find houses for sale and long term rentals on idealista