New rip off!

Share experience regarding ownership of property and/or living in Portugal.
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pato
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New rip off!

Post by pato »

What's this AIMI demand, they want me to pay 800 euros as an extra rate payment and they've based that on my casa being valued at 600,000 euros, what a joke, this is sure one crazy country, I've got until the end of this month to make the payment any one know what it's all about. I'm on the verge of selling the place and getting out :|
RichardHenshall
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Re: New rip off!

Post by RichardHenshall »

Published on 10 April 2017:
https://www.sovereigngroup.com/portugal-newsletter/portugal-newsletter-issue-15/ wrote:
IMPORTANT INFORMATION – Additional IMI property tax (AIMI)

This year there is a new property tax (AIMI) which is in addition to the existing IMI tax.

For individual property owners this is applicable only to those whose sum of all property tax values equal or exceeds 600,000 euros. Individual property owners will pay an additional 0.7% on the amount over 600,000 euros up to 1 million euros and 1% on the amount over 1 million euros.

Properties held by Companies will pay an additional bill of 0.4% on the full property tax value. Properties held by a blacklisted jurisdiction company will continue to pay an IMI of 7.5% plus the additional AIMI of 7.5%.

IMI property tax bills are usually issued in April, July and November. The AIMI is due now in 2017 in respect of the tax value as at 1st January 2017. It is expected that the bills will be issued in July for settlement in September 2017.

If your property tax value is or exceeds 600,000 euros and you are a couple married under the joint assets regime but only one of you receives an IMI bill (although both legally own the property), you can apply to receive instead two bills. This will result in the property tax value being divided and therefore less than 600,000 euros so you should not incur the AIMI. This application must be made between April 1st and May 31st 2017.

Note that the tax value is the value allocated by the Portuguese tax department and has nothing to do with the market value of your property.
njc0607
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Re: New rip off!

Post by njc0607 »

i cannot believe this statement....
"Note that the tax value is the value allocated by the Portuguese tax department and has nothing to do with the market value of your property."

so who the hell decides that your property is worth €600,000 or more ?
dennisg
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Re: New rip off!

Post by dennisg »

pato wrote:What's this AIMI demand, they want me to pay 800 euros as an extra rate payment and they've based that on my casa being valued at 600,000 euros, what a joke, this is sure one crazy country, I've got until the end of this month to make the payment any one know what it's all about. I'm on the verge of selling the place and getting out :|
Did you, Pato?
steve
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Re: New rip off!

Post by steve »

In my experience the IMI values are well below the market value. When I sold my old house on the edge of VDM for just over 500000 it was revalued at 200000 for IMI purposes. I am amazed that a house on ADM has an IMI value of 600000. Must be a small palace hidden away there.
RichardHenshall
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Re: New rip off!

Post by RichardHenshall »

njc0607 wrote:i cannot believe this statement....
"Note that the tax value is the value allocated by the Portuguese tax department and has nothing to do with the market value of your property."

so who the hell decides that your property is worth €600,000 or more ?
The same formula is applied to every property in the country. The result is the Valor Patrimonial Tributário, on which taxes are based. Try it here. It isn't a measure of what the property is worth, that's decided by the person buying the property.
njc0607
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Re: New rip off!

Post by njc0607 »

ok... say I have purchased a villa for €350,ooo and we are renovating/extending etc, and estimated market value wil lbe circa €650-725,ooo when complete...

will I be liable for this "tax" ? as far as I am concerned it should not be.... as its was "valued" at €350 upon purchase.
RichardHenshall
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Re: New rip off!

Post by RichardHenshall »

The purchase price is of little relevance. Following a change of ownership the property will be re-assessed against the current factors for building costs, age etc and a new VPT calculated. This might take months/years to settle.

If you then (legally) materially alter/improve the property, it will/should be re-assessed again to reflect the changes. Annual IMI charges will likely increase as a result.

If that final re-assessment produces a VPT of €600,000 or above and it's owned by one person, then AIMI might be due. As previously stated, this has nothing to do with anyone's perception of market value.
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