Who pays IMI tax in Portugal?
the owners of properties
IMI is a Municipal Property Tax which is updated and must be paid annually by the owners of properties or land in Portugal. In technical terms, IMI is levied on the Taxable Asset Value (VPT), i.e. the assessed value of the property registered with the Tax Authority (AT).
How much is IMI tax in Portugal?
If the company is registered in a ‘blacklisted jurisdiction’, the company will pay AIMI of 7.5% on the full VPT value, in addition to the IMI charge of 7.5%….Portugal Local Property Tax (IMI)
| IMI rates 2020 | |
|---|---|
| Property Type | Tax Rate % |
| Rural property | 0.8 |
| Property owned by a company registered in a ‘blacklisted’ jurisdiction | 7.5 |
How much tax will I pay on my pension in Portugal?
Secondly, you’ll pay income tax on Portuguese earnings at a flat rate of 20%, rather than the standard progressive rates of up to 48%. In 2020, the Portuguese government increased the tax rate on foreign pension income from 0% to 10%.
How is IMI calculated in Portugal?
The IMI calculation is made by multiplying the VPT (value that is attributed to the property, according to article 38 of the IMI Code) by the IMI rate of the municipality where the property is located, according to the following formula: IMI payable = VPT x Municipality Tax.
What does IMI stand for in Portugal?
IMI (Imposto Municipal sobre Imóveis – Municipal Property Tax) is a tax on the taxable value of immovable property in Portugal. This tax came into force in 2003, replacing the Council Tax, and reverts to the respective municipalities.
How do I pay my IMI?
How to Pay IMI Online
- Sign up to the Portal das Finanças online. In order to access your IMI bills through the ‘Portal das Finanças’, you will first have to request a password to be sent by post to your fiscal address.
- Log on to your account.
- Access your IMI bills online.
- Pay via your Portuguese bank online.
Is Portugal tax free for expats?
As mentioned above, residents of Portugal must pay taxes on worldwide income, while non-residents are only taxed on Portugal-sourced income. You are officially a resident if you spend 183 days or more in Portugal over a 12-month period, or maintain an abode.
How can I live tax-free in Portugal?
Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.
Do retirees pay tax in Portugal?
Taxes on retired expats in Portugal Those with NHR status can benefit from lower taxes in Portugal for a period of 10 years. Foreign pension income and withdrawals were once tax-free under the scheme. However, as of 2020, foreign pensions are now taxed at 10% for those with NHR status.
How much is annual property tax in Portugal?
0.3% to 0.8%
The property tax is fixed annually by each municipality and ranges from 0.3% to 0.8%.
What does IMI mean in Portugal?
Imposto Municipal sobre Imóveis
IMI (Imposto Municipal sobre Imóveis – Municipal Property Tax) is a tax on the taxable value of immovable property in Portugal. This tax came into force in 2003, replacing the Council Tax, and reverts to the respective municipalities.