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    Who has to pay AIMI?

    The AIMI is due by the owners of urban buildings (buildings and land for housing construction), located in Portugal on 1 January each year.

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    AIMI a New Property Tax in Portugal that applies to residential buildings and building lots.

    Discover the essential rules of this new property tax that Algarve Property Online has prepared for you

    Who should pay AIMI?

    AIMI is payable by the owners of urban buildings (residential buildings and plots), located in Portugal on 1 January of each year.


    What is the tax base?

    The taxable amount is the sum of the TPVs of the buildings that are the building blocks on behalf of each owner. However, the law provides for a deduction from the tax base.

    The sum of the total VTP is reduced by EUR 600 000. For couples opting for common taxation, the deduction is multiplied by two (EUR 1 200 000).

    Up to these amounts, owners are exempt from AIMI. That is to say that the tax is levied only on the part exceeding EUR 600 000 or EUR 1 200 000 (on common taxation).
    But attention, the one who has debts to regularize the Treasury or Social Security loses the right to deduct the AIMI.

    Note: TPVs of IMI's exempt properties in the previous year are excluded from the tax base.


    What is a building matrix?

    The construction matrix is a sort of identity card of a building, which is registered in finance. The matrix contains information on the characterization of the building, its area, its location, VPT and the owner's identification.


    What are the applicable fees?

    The addition to IMI includes two rates of 0.7% and 1%, which are applied according to the following table:

     

    Individuals

    Sum of VPTs

    Taxes

    Separate taxation

    0€ a 600 000€

    NA

    600 000€ a 1 000 000€

    0,7%

    Supérieure a 1 000 000€

    1%

    Joint Taxation

    0€ a 1 200 000€

    NA

    1 200 000€ a 2 000 000€

    0,7%

    Supérieure a 2 000 000€

    1%

    How is it calculated?

    To know the amount of AIMI payable, first add the TPVs, of the buildings that are in the name of an owner. In the case of a couple that opts for joint taxation, the VPTs of the buildings that belong to themselves (own of each element and common) are added. The next step is to subtract the deduction provided by law from the overall TPV. Finally, fees apply. Have any doubts? See two simulations:

     

    Joint or separate taxation?

    Landowners or non-single owners may be taxed jointly or separately, as mentioned above. However, if the couple does nothing, a separate tax applies.
    Warning: Married couples under the communion regime of goods that prefer separate taxation must verify ownership of buildings acquired jointly in the respective seat. There are cases where only the name of one of the spouses appears. To prevent the spouse from paying AIMI alone for a building that also belongs to the other, the couple must file a joint declaration identifying the buildings that belong to each other and which are common. This statement must be sent via the Finance Portal between 1 April and 31 May.

    As a general rule, joint taxation is more advantageous when the sum of the VPTs for buildings of one of the elements of the couple exceeds EUR 600 000 and that of the other is less than this value.

    Is AIMI deductible from the IRS collection?

    Yes, but only if landlords receive real estate income (rents) for buildings subject to addition to IMI. In this case, AIMI is deductible up to:
    part of the collection corresponding to the income of the property, to the collection obtained by applying the rate of 28% release to the income of the property, in cases where there is no collection relating to the income of category B generated by the activities of allocation or accommodation.

    When is it paid?

    The IMI supplement is calculated in June by the Tax and Customs Authority (TA) and paid in one installment in September.


    If you need Algarve Property Online,  can help you, with the solution: Tax Representation makes you rested in relation to taxation in Portugal. Contact us

    07/09/2017