Portugal IMI Council tax

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Member since 09 April 2024

xyatnyMember09 April 2024 23:15:53

Has anyone received the annual council tax bill? My investment is 300k plus but the Rateable value (which I assume is like the tax assessment amount) is less than 20k. I found that very surprising. Anyone with similar experience?

also, there is a fiscal representation fee that’s 6 times of the tax amount. It seems silly paying that fee when the tax itself is minimal. Can we pay the tax directly without engaging “fiscal representation”?

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert10 April 2024 08:14:54

4591

This means that the previous owners of your property carried out major improvements that they didn't declare to the tax office. They probably bought a ruin (due to the low value of the current VPT), then with major works, achieved a much higher market value. The purpose of this hiding of the property's current value was to avoid increasing the CIMI/VPT taxable value and thus not pay the taxes due on the property. You can update the VPT with the AT if this is of interest to you, but be aware that you will pay higher IMI tax.

This information about the VPT is in the deed of your property, so I find it very odd that you only notice it now...

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