Tax Guide: What is Portugal’s IMI Tax?
25 Apr 2023
Navigating the Portuguese property tax system as an expat can be challenging. This tax guide provides an overview of Portugal's property tax reporting requirements in Portugal, enabling you to understand your obligations better.
Property Tax Reporting
1. IMI (Imposto Municipal sobre Imóveis) - Municipal Property Tax
- IMI is an annual tax payable by property owners in Portugal.
- The tax rate varies depending on the municipality.
- Property tax bills are issued between April and November, with payment deadlines in May, August, and November (depending on the tax amount).
- Expats should pay the IMI on time to avoid penalties and interest charges.
2. IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) - Property Transfer Tax
- IMT is a one-time tax paid when acquiring a property in Portugal.
- The tax rate is progressive and depends on the property's value and purpose (residential or non-residential).
- Expats must pay the IMT before the property transfer is registered.
- The notary office, where the property transfer is registered, will typically handle IMT payment.
Double Taxation Treaties
Portugal has double taxation treaties with several countries to avoid double taxation of income.
Expats should consult their home country's tax authority and a Portuguese tax professional to ensure compliance with both jurisdictions' tax laws.
Speak to the experts.
Understanding and complying with Portugal's property tax and rental income reporting requirements is crucial for expats. Consider seeking advice from a local tax professional to ensure you meet all legal obligations and optimise your tax situation.
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