The Municipal Property Tax (IMI) is a reality for all families who own properties in Portugal. However, since 2016, there has been a tax benefit aimed at families with dependents: IPTU Família. This annual tax discount automatically applies to households that meet certain requirements, but many people are unaware of whether they are eligible. Find out how it works, who can benefit and how to find out if your city hall has joined.
What is Family IMI?
Family IPTU consists of a reduction in the IPTU rate based on the number of dependents in the household. This benefit, defined in article 112-A of the IMI Code (CIMI), applies exclusively to properties intended for personal and permanent housing.
According to legislation, the fixed deduction varies as follows:
- 1 dependent: 20 euros;
- 2 dependents: 40 euros;
- 3 or more dependents: 70 euros.
The deduction directly reduces the amount payable, being automatically applied by the Tax and Customs Authority (AT) to families that meet the defined criteria.
How to calculate the discounted IMI value?
To determine the amount of IMI payable after the Family IMI discount, the formula is used:
IMI = IMI rate applied by the municipality x Tax Asset Value (VPT) – Fixed deduction.
For example, consider a family with two dependents and a property with a VPT of R$90,000, in a municipality that applies an IPTU rate of 0.45%. If the city hall has adhered to the Family IPTU, the calculation would be:
IMI = 0.0045 x 90,000 – 40 = 365 euros.
Criteria to benefit from IMI Family
For a family to have access to the discount, it is necessary:
- Having dependent dependents:
- Under 25 years old;
- No own income.
- Own and permanent housing:
- The property must be registered as the household’s tax address.
- Exclusive property:
- The family must be the full owner of the property.
Despite meeting these criteria, the benefit depends on the adhesion of the municipality where the property is located.
How do you know if your municipality has joined IMI Familiar?
At the moment, 257 Municipal Chambers offer the Family IPTU discount. To check if your city hall has joined:
- Consult the website of Portuguese Association of Large Families (APFN)which regularly updates this information.
- Access your City Council website to confirm.
However, the Finance Portal does not yet provide this information.
How to request Family IMI?
It is not necessary to register to benefit from IMI Familiar. This discount is automatically applied by AT based on the data declared with the IRS, namely the number of dependents and the tax address of the property.
Municipalities that adhere to the benefit communicate directly to AT, which adjusts the amount due when calculating the annual tax. Therefore, there is no need for travel or additional bureaucracy for taxpayers.
Importance
Family IPTU represents a significant opportunity to alleviate the tax burden of Portuguese families. In a context of rising housing costs, this benefit is a form of support that reinforces the financial capacity of households with dependents. If you have dependent children and meet the criteria, make sure your council has joined and take advantage of this automatic discount.
Keeping up on available tax benefits can make all the difference to your family budget.
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