Property Tax Portugal

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Essentials of Property Taxes in Portugal

Taxes for Property Owners: A Comprehensive Guide

As a property owner in Portugal, it is essential to understand the various taxes that apply to your real estate. These taxes play a significant role in your financial obligations and can impact your overall investment strategy. This article provides a comprehensive overview of the main property taxes in Portugal, ensuring that you are well-informed and compliant with the legal requirements.

Types of Property Taxes

Property owners in Portugal are subject to four main property taxes:

IMI (Municipal Property Tax)

IMI (Imposto Municipal sobre Imóveis) is an annual tax levied by municipalities on all urban and rural properties. It is calculated based on the property's rateable value, which is typically determined by its location, size, and construction quality.

IMT (Transfer Tax)

IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is a tax payable when a property is purchased or inherited. The rate varies depending on the type of property, its location, and the purchase price.

Additional Municipal Property Tax (AIMI)

AIMI (Adicional ao IMI) is an additional tax that may be levied on properties with a rateable value exceeding a certain threshold. This tax is typically applicable to luxury or high-value properties.

In addition to these main taxes, property owners may also be subject to other charges, such as council tax, garbage collection fees, and water rates. It is important to note that tax rates and exemptions may vary depending on the municipality where the property is located.

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