New tax on rental properties?

[e-richard]

Thanks Biffa.

We are not sure what happens in 2014 in respect of the year 2013. Perhaps all capping will be lost which could mean some very large increases!

I guess the very worst case scenario for 2014 is that the IMI bill will be exactly trebled



p.s. For the pedants out there: Should that be tripled or trebled ??

[joeysoap]

As I purchased in 2009 this will probably not affect me but if the value is increased then should the .7% be reduced to the rate paid by 'newbies' , I think my rate last year was .38%

(only a matter of time of course until they increase this rate and for all I know it increases annually anyway. I think it's set by the local Camera in Lagoa)

[biffa]

A very good point Joey. I was being too simplistic in my reply to e-richard as once a property has been revalued under the present valuation scheme (called CIMI) the tax rates available to each council change as follows:

Rustic Land : 0.8%
Urban Property : from 0.2% to 0.4%

Thus whilst a property may be taxed at my assumed 0.7% for the year 2011 (payable in 2012) once it is revalued during 2012 it can only be taxed at a maximum of 0.4% for 2012.

Maybe someone has the time to do he math on that!

The IMI shouldn't change yearly (unless there was a revaluation during the year) but I think it is adjusted for inflation every 3 years.

[sam]

Some of us bought years ago and looks like we can look forward to a large increase, even with capping and a drop in % charged. Mind you it is about time they got round to this. Perhaps it will get some of the councils out of debt, or at least improve their finances substantially.

[jonboy]

How then does this affect properties in the so called whitelisted jurisdictions such as Malta , Delaware mentioned by Graham who seems to have a very large IMI bill way outside the capping limitations...>

Any ideas..?

JB