Government raises property tax by 2% on revalued properties
The Portuguese government has hiked the IMI property tax on houses that have been revalued by 2%.
It has updated the average construction value per square metre bringing the average increase to €10 per square metre for revalued or new build properties.
The price hike, which comes into force from next year, has been upped because the government has decided to update the average construction value per square metre — a component that serves as the basis when calculating the IMI property tax.
According to a decree published in the State circular Diário da República on Thursday, the average construction value will increase around €10 thereby increasing the tax by 1.99%.
From next year, however, the amount of actual tax levied could be even higher as the government calculates property tax levels using a coefficient based on the location of the property.
Luís Lima, President of the Portuguese Association of Estate Agents and Property Professionals (APEMIP) explains, “Every year the National Urban Property Commission (CNAPU), the body which sets property taxes and which is conditioned by the State in such matters, sets the tax on the average construction value per square metre and the State decided to accept or reject the amount.”
“This year the update of 1.99% was approved by a majority although there were those who called for an even greater increase,” he adds.
A Ministry of Finances source told the online news source ECO that the “government decided to follow the recommendations of the CNAPU on the matter of setting the average construction value per square metre.”