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IMI Rates in Portugal 2024: Municipal Property taxes

The Municipal Property Tax (IMI) rates to be applied in 2024 have already been disclosed by the vast majority of the 308 Portuguese municipalities, and there are several updates and novelties to take note of this year. 

Property taxes are a significant aspect of homeownership, and staying informed about changes in rates and regulations can lead to substantial savings. In Portugal, the Imposto Municipal sobre Imóveis (IMI), or Municipal Property Tax, is one such levy that directly impacts property owners.

Let’s delve into the recent updates and strategies to potentially reduce your IMI burden.



Understanding IMI Rates

Each year, municipalities establish the IMI rates to be charged to residents for the following year, communicating them to the Tax and Customs Authority (AT) by December 31st.

While many have opted to maintain the rates from the previous year, which typically range from 0.3% to 0.45% for urban properties and 0.8% across all municipalities for rustic properties, some have announced reductions. 

According to Idealista, cities like Lisbon, Viseu, Leiria, Coimbra, Albufeira and other major cities opted to set their IMI rate at the lowest possible (0.3%). Furthermore, 46 municipalities have opted to decrease their previous year’s rates.


Stagnant Square Meter Price

In 2024, the price per square meter, a crucial factor in IMI calculations, remains at 665 euros. This marks the continuation of the price set in 2023, which itself saw an increase from 640 euros in 2022. Over the past two years, taxpayers have faced the most significant increases in square meter prices since the tax's inception in 2003.

However, those who do not request a reassessment of their property will not see this coefficient updated and will continue to pay based on the square meter price in effect at the time of the last assessment.


Requesting a Property Reassessment

Thankfully, requesting a reassessment is a straightforward process. By submitting the appropriately filled Model 1 IMI form to the Tax Authority, homeowners can trigger a new evaluation of their property. The request is free and can be submitted online through the Tax Authority's portal.

Requests made during 2024 will only affect tax calculations for 2025 and subsequent years. As this process isn't automatic, it's advisable to submit requests well in advance whenever possible.

Property reassessments typically occur every three years. If you've already requested one in 2022 or 2023, you'll need to wait for the next opportunity. It's essential to weigh potential savings against the possibility of increased tax liabilities. Simulations can help determine whether requesting a reassessment is financially beneficial for your specific circumstances.


Managing Payments

IMI payments are typically due in May, with the option for split payments for amounts exceeding 100 euros. Payments above 500 euros can be spread across three installments. Being aware of these payment options can assist homeowners in managing their finances efficiently.



Conclusion

Staying proactive in managing property taxes, such as IMI, can lead to significant savings over time. Understanding the reassessment process, staying informed about rate changes, and leveraging available resources for simulations are essential steps for homeowners looking to optimize their financial responsibilities. 

By staying informed and taking timely action, homeowners can navigate the complexities of property taxation in Portugal with confidence. 



Looking to be a new homeowner in Portugal but don’t know where to start? Good news - you’re already in the right place! At Savvy Cat Realty, we aim to be your ‘right hand’ and guidance throughout the whole process: from location and property scouting, negotiation, navigating the intricacies of property taxes, we help you with it all!

Contact us now at contact@savvycatrealty.com 


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