In addition to the usual Municipal Real Estate Tax (IMI), there is an additional fee in Portugal that led to owners with higher real estate.
This is the additional to the Municipal Real Estate Tax (AIMI), a tax burden that can surprise those who hold properties with significant assets.
Annual application with defined criteria
According to Deco Proteste, AIMI is charged once a year, in September, based on the taxable property value of properties arrested on January 1 of the year.
This tax focuses on the sum of the property values of housing urban buildings (excluding affections to economic activities) or land for construction.
According to the same source, the tax applies only to taxpayers whose total equity value exceeds 600 thousand euros. Depending on the form of taxation, separate, joint or in case of indifferent inheritance, the rates vary.
Separate taxation: values and echelons
In the separate tax regime, AIMI is applied as follows:
- Between 600 thousand and 1 million euros: 0.7%
- Between 1 million and 2 million euros: 1%
- Over 2 million euros: 1.5%
It writes to Deco Proteste that each holder is responsible only for the amount corresponding to their share of heritage, and an automatic deduction of 600 thousand euros is applicable to the total amount.
Joint Taxation: Couples and Benefits
For married or actually united who opts for joint taxation, the levels are adjusted:
- Between 1.2 million and 2 million euros: 0.7%
- Between 2 million and 4 million euros: 1%
- Over 4 million euros: 1.5%
Adds the publication that, in this case, the deduction becomes 1.2 million euros, applied to the total of the properties registered in the name of the couple.
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Indivisible inheritances with its own rules
In situations of indivisions, where the heritage has not yet been formally shared among the heirs, AIMI applies from 600 thousand euros, with a single rate of 0.7%. Explains the same source that the heirs are jointly and severally responsible for the payment of the tax.
Incidence on housing and land for construction
According to Deco Proteste, AIMI does not apply to properties intended exclusively for commercial, industrial or service purposes. The incidence of the tax focuses on housing, land for construction and their fractions.
It also states that the organization is exempt from AIMI, properties classified as cultural heritage, provided that they are affected for housing purposes, as well as the housing cooperative buildings or solidarity institutions.
CALCULATION AND PAYMENT OF TAX
The value of AIMI is automatically calculated by the Tax Authority and made available on the Finance Portal. Payment is made annually by the end of September. Taxpayers are notified by electronic or postal, depending on their communication regime with the tax authorities.
Limited but relevant impact
Although this tax affects only a specific range of taxpayers, its application represents a considerable additional fiscal effort, especially in periods of sharp appreciation of real estate.
It recommends that owners with high value properties confirm the registration data and consider the tax regime more favorable to their family situation.
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