GrahamF

Thanks for the reply. Although we have never been asked/billed to pay property tax, it appears from what you say we should have been. Will have a natter with Finances on return as I don't want to receive a massive bill some years in the future.

Red Eric

Is that an actual per year or an average over time?

The property value on which IMI is calculated (the VPT) is made up of a number of elements, including age of the property. It is recalculated every 3 years, which might explain the occasional reduction. Another factor which could lead to a reduction is the other variable in the IMI calculation, which is the rate set by the municipality. This is limited but varies between 0.3 - 0.45% for dwellings.

Shanorme

It averages out about €10 a year. This year it was €11.24 less than last year.

Red Eric

Your bills will show both the elements, so you can check which has changed each year.

It's most likely to be a small reduction on the taxa %, which is set by the local authority annually and applied across all properties in their area.

Red Eric

If what's showing for 2022 in the IMI / Consultar Notas de Cobrança page off the long Services menu says "Contribuinte sem notas de cobrança no Imposto Municipal sobre Imóveis", then you're exempt for last year, based on info held by AT.

You could confirm whether you ought to be exempt by checking the conditions for exemption posted just above your question and verifying whether you fulfill them. If you don't but no bill has been issued, it's probably because AT hasn't been correctly informed of your situation.

GrahamF

Just to follow up, we visited Finances today to query why we haven't received a demand to pay property tax, during the 6 years since purchase. Only reply we could get was that records show no payment due.

1Steve

GrahamF When I purchased my property the estate agent told me that I was exempt from paying IMI for 3 years and I said that was a good little perk. He then said it used to be 10 years and then that was reduced to three so maybe when you purchased your property the 10 year rule was still in place.

Red Eric

Then I would suggest that that address is recorded with Finanças as your fiscal residence, which would not be correct if, as previously posted, you have remained resident and tax resident in the UK.

GrahamF

We are both tax resident in UK. Wife is a Portuguese citizen and the address on her citizen card is our property, I have permanent residence here at the same address. On verbal advice from Finances, we don't submit tax returns as no income or even bank interest here. We asked the question and as long as they say we have nothing to pay, that's fine with us.

Red Eric

Sure, I get that but they can only go by what their records show, presumably as per information supplied by you. And as you are getting a concession only available to tax residents, they presumably have you recorded as such, with the further combination of VPT under the qualifying threshold and no income declared(presumably) doing the rest. That would clearly be wrong if you had joint income from anywhere in the world exceeding the threshold for the exemption.

And if Finanças have you down as tax resident in PT then you also have obligations, with which they might expect or require you to comply. There's also an obligation to inform Finanças of any change in fiscal residence within a certain time limit. If you're fiscally resident in the UK, that is what should show on your Finanças records.

GrahamF

Neither of us has ever supplied or been asked to supply information by Finances during the couple of decades I've had residence or my wife's lifetime and she's in her 70s now. No intention of going looking for trouble so will just leave well alone until they ask (if ever) any questions.

Red Eric

I'd be a bit surprised if you never had to give an address when you got your NIF, and you have an obligation to update that information when it changes. I'd also be surprised if no information was supplied when you purchased any properties you have owned - and I suspect your fiscal address might have been changed as part of that process. You could always check what fiscal address you're registered at if you have online access to your finanças account (or get online access if you don't already have it).

Fair enough. If neither you nor the Finanças are much bothered about the whys and wherefores I guess it'll remain unresolved, unless Finanças wake up to it or other omissions arising from being registered as tax resident here but not complying with consequent obligations.