Pay less IMI - Value of IMI Municipal Property Tax

How to calculate the IMI and the Tax Asset Value of the Property

To find out how to calculate the IMI to pay, consider the Property Tax Value of the Property (VPT) and then multiply this amount by the tax rate applicable in the respective municipality. Know the parameters that go into the calculation, such as the location coefficient, among others. You will see later if you can pay less IMI.

The VPT is the administrative value of the property determined by the Tax Authority (AT).

Reading Time: 10 minutes

How to Calculate IMI - Municipal Property Tax

The formula is simple:

Calculate IMI = Municipal IMI Rate x VPT

IMI fee

The rate of the Municipal Property Tax - Municipality IMI, can be consulted on the Finance Portal, click on the following image to place yourself inside the Portal.

Example:

If you want to know the IMI rate in Cascais, enter the year and the district and click on "Continue".

Consultation of IMI Fees, Lisbon District, Year 2017, IMI payable in 2018
Consultation of IMI Fees, Lisbon District, Year 2018, IMI payable in 2019

And all the counties in that district are listed below.

2018 IMI fees, by County, payable in 2019
2018 IMI fees, by County, payable in 2019

Cascais has an IMI rate of 0,36%. This rate is important, to know how to calculate the IMI.

Example:

Suppose you own a building, with a Property Tax Value (VPT) of 135.000 euros, located in Amadora. The IMI rate applied in 2019 (relative to the 2018 tax) is 0,33%.

To find out how to calculate the IMI in 2019, 135.000 x 0,33% = 445,5 euros.

How to calculate the IMI and VPT of Real Estate
How to calculate the IMI and VPT of Real Estate

How to Calculate the Tax Asset Value of the Property - VPT

To find out what VPT of your property, consult the Caderneta Predial, in the reference “Data and Valuation”.

The VPT is calculated differently for urban buildings or for rustic buildings. The VPT for urban buildings is calculated as follows:

Calculate VPT = VC x A x Ca x Cl x Cq x Cv

on what:

VPT = property tax value of the property;
VC = base value of built buildings;

It is fixed annually by ordinance and corresponds to the average construction value per square meter but the square meter value of the implantation land, which corresponds to 25% of the first.

In 2019, the value set by the Ordinance is € 492,00, the average construction value per square meter, plus 25% of this value, corresponds to € 607,5 (492,00 + 115,50) the base value for the purposes assessment of built buildings.

This value applies to all urban buildings.

A = gross construction area plus the area exceeding the implantation area;

It results from the following calculation:

A = (Aa + Ab) x Caj + Ac + Ad

Being that:

Aa = gross private area

Ab = dependent gross areas

Caj = area adjustment coefficient

There is a table with the values ​​of the Adjustment Coefficient, for residential buildings.

Ac = area of ​​free land up to the limit of twice the area of ​​implantation

Ad = area of ​​free land that exceeds the limit of twice the area of ​​implantation

Ca = coefficient of affectation

It depends on the type of use, if housing the coefficient is equal to 1.

Cl = location coefficient

It can be obtained through simulator on the Finance Portal. Access a map with the location coefficient for all areas in Portugal. It is the Geographic Information System of the Municipal Property Tax - SIGIMI, a valuable aid to calculate the IMI.

Example:

Insert in the research area, the District of Lisbon, Municipality of Lisbon, Parish of Alvalade, zone of Alvalade.

You can see the area on the street map or see the area in an aerial photo.

Then zoom in with the mouse (or the magnifying glass button).

Location coefficient, map by street, how to calculate the IMI and tax equity value of the property
Location coefficient, map by street
Pay less IMI, Aerial view, location coefficient
Aerial view, location coefficient

Click on the building on which you want to find the location coefficient and to mark a blue dot. Hover your mouse over this blue dot to see the location coefficient (in “housing”, if the property is a house).

Pay less IMI. Location coefficient, Street and building image, magnified image with magnifying glass
Street and building image, magnified image with magnifying glass

In this example, the Alvalade area that we chose, has a location coefficient of 2,95.

Clicking on “simulate” allows you to know the values ​​for calculating the tax equity value of the property. We thus saw the simulation to calculate the IMI to pay.

We will see simulation examples below.

Cq = quality and comfort coefficient

major and minor factors, as shown in the table.

Table Elements of Quality and Comfort. Tax asset value of the property.
Table of Quality and Comfort Elements
Cv = age coefficient

It is calculated considering the number of years since the date of issue of the license to use, if any, or the date of completion of the construction works.

Important to pay less IMI. Coefficient of Oldness; How to calculate the IMI. Tax asset value of the property
Coefficient of Oldness

What can I do to pay less IMI

Every three years, AT updates the VPT based on currency devaluation coefficients. It may happen that some of the factors that go into the calculation of the VPT change over the years. This is the case of the age coefficient, which depends on the age of the property. Over time, the property depreciates and the old age coefficient serves precisely to take this factor into account.

If the old age coefficient is not updated, you will continue to pay your IMI as if the property continues as new, when in reality it has been in existence for several years.

You need to have the land register to be able to simulate the VPT and understand if your IMI is well calculated or if you are overcharging and, in this case, you may pay less IMI.

Use the data in the building book and do the simulation.

Example:

Let's simulate the Tax Asset Value of the property located at Rua de S. Marçal, Lisbon, Parish of Misericórdia.

We started with the option for Streets (Road) to locate the place.

We started with the option for Streets (Road) to locate the place; Location coefficient. How to Calculate IMI.
Option for Streets (Road)
Relatively close streets have different coefficients of location.

Now we put the option aerial view and with subtitles (aerial and labels)

Option aerial view and with subtitles (aerial and labels)
Option aerial view and with subtitles (aerial and labels)

Once the street is found, we click on the building for which we want to determine the taxable equity value of the property.

A blue dot and a legend appear that indicates that the value of the location coefficient for housing is 2,6.

It now remains to click on the “simulation” (right arrow) to start the process for calculating the IMI.

Let us admit that the gross private area is 80 m2, the permiling is 140 and that the building is 110 years old. The area of ​​the integral land and the dependent gross area are 0,00.

Simulation of the Tax Asset Value of the Property, a first step to calculate the IMI and check if you can pay less IMI.

Simulation of the Tax Asset Value of the Property
Simulation of the Tax Asset Value of the Property

Fill in the quality and comfort coefficients. We can simulate alternatives to see if we can pay less IMI.

Simulate VPT
Simulate VPT

Define the areas, according to the building booklet.

Simulate VPT Areas
Simulate VPT Areas

And "Calculate" the tax equity value of the property.

Value calculated by the simulator
Value calculated by the simulator

In this example, the calculated value is 50.210 euros.

We can try other simulations to see if we can pay less IMI.

How to request a revaluation of IMI

If the result of the simulation is lower, you can justify making a request for revaluation of the VPT to the Finance Service (AT) and pay less IMI. It is possible to do this every three years free of charge.

If so, find out how to request a revaluation of the IMI: knowing how to calculate the IMI, you only have to complete the IMI Model 1 and keep in mind that the revaluation request must be made by 31 December. And expect that AT will meet you and pay less IMI.

Know how to calculate the IMI, see also the respective code. Click on the following image:

IMI code Pay less IMI
IMI code on the AT Portal

In the case of selling the house, you need to know how calculate capital gains.

See also other features

Download IMI Code

Download the IMI Code
FREE DOWNLOAD

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