Taxes in Europe Database v2
IMI Code, enacted by Decree Law 287/2003 of 12 November 2003, as amended; Tax Incentives Statute (EBF), enacted by Decree Law 215/89 of 1 July 1989, as amended; Regional Legislative Decree 2/99/A of 20 January 1999; Regional Legislative Decree 18/99/M of 28 June 1999; Law 2/2007 of 15 January 2007; Law 85/98, of 16 December 1998; Law 19/2003, of 20 June 2003; Law 64-B/2011 of 30 December; Law 82-D/2014, of 31 December; Law 82-B/2014, of 31 December.
The owner or usufructuary of the immovable property on the 31st December of the year to which the tax relates, whether or not resident in Portugal.
The taxable value of the urban, rural or mixed immovable property situated in the Portuguese territory, including movable constructions remaining fixed in the same place for more than one year.
The taxable value (Vt) of urban immovable properties is assessed at the time of the transfer, according to the following formula: Vt = Vc x A x Ca x Cl x Cq x Cv
Vc = Base value of the building which corresponds to 1.25 times the average construction price (materials, labour, equipment goods, administration, energy, communications, and other consumables) per square meter;
A = Total area of the building (adjusted for residential buildings);
Ca = Type of use coefficient, which ranges from 0.08 for parking space to 1.2 for commercial buildings. This coefficient is 1.10 for services buildings, 0.60 for industrial buildings and warehouses, 0.70 for social residential buildings and 1.0 for other residential buildings;
Cl = Location coefficient, which ranges from 0.35 for isolated residential buildings in rural areas to 3.5 for buildings located in high property market value areas;
Cq = Quality standard coefficient, which ranges from 0.02 to 0.2, increasing with the existence of amenities such as a garage, a swimming pool, a tennis court, etc and decreasing with the non existence of basic amenities such as a toilet, water, electricity, gas, etc.;
Cv = Age of the building coefficient, which ranges from 0.40 for buildings aged more than 60 years to 1.0 for buildings aged less than 2 years.
The taxable value of rural immovable properties is deemed to be 20 times its notional rent (estimated annual net income).
If the taxpayer (corporate) is a resident of a listed tax haven, the applicable rate is 7.5%.
The rates applicable to urban immovable properties are doubled if they are vacant for more than one year, according to the applicable law.
The tax liability up to €250 must be paid in April, above € 250 and under €500 must be paid in two instalments, in April and November; above €500 it must be paid in three instalments April, July and November.
The tax is assessed and collected annually by the Tax and Customs Authority (AT).