Rates - or IMI tax

[wolfie]

Following on from a previous thread - what do folk pay on average for a villa worth say 500 000 euros for local tax
Just ball park figures to give me a rough idea - thanks

[James Faro]

Hey Wolfie. From what I have been told in Carvoeiro, the charge is 0.4% so a house worth €500,000 would attract a charge of €2,000.00

Of course I don't have a property yet and have being doing expenses calculations.

Anyone living in Carvoeiro can give their rates costs? It would help us both!

I am also looking to see if there is a ceiling on the most that can be paid and whether there are allowances or thresholds.

Thanks - James

[wolfie]

Thanks for that James - any other feedback would be appreciated .

[Mike Banks]

I don't know whether there are different rates, depending on the type of property, but our apartment is on Rocha Brava, and our annual IMI is about 0.18% of the price we paid for it in 2003.

[steve]

The rates payable are based on the valor patrimonial assessed by the Financas on each property. These used to be very low and a property which was built in the 1980s and which would currently sell for around 50000 euros might have a valor patrimonial of 40000 euros and rates of perhaps 300 euros a year.

When houses are sold and when new houses are registered the Financas revalue them for IMI purposes. The formula for new houses I am told produces IMI values at something near the market value but I do not know if the same formula is applied to resales.

0.4% is applied to the value for modern houses but it may be different for older properties.

[wolfie]

thanks Steve , for a very comprehensive reply - it all makes sense now ! I have been viewing several properties with the same valuations but very different rates payable. The newer ones obviously have up to date valuations .There are some old villas paying very little .