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IMI Above 100 Euros May Be Paid in Three Instalments

28 September 2018

The amendments to the Municipal Property Tax Code (IMI) are aimed at reducing the risk of defaults and tax foreclosure proceedings.

Taxpayers who pay more than 100 euros in municipal property taxes (IMI) will be able to split the payment into three instalments, starting next year. The idea is to allow families to spread the cost of the payment throughout the year, the Jornal de Notícias reported.

Until now, contributors could only pay the IMI in instalments when the charge amounted to more than 250 euros. The government lowered the threshold to relieve the pressure on families, thus reducing the risk of default and tax enforcement proceedings.

The payment dates were also altered, ending payments close to the Easter holiday. With these changes to the tax code, contributors will only have to make the first payment in May, not April, the second in August and final instalment in November.

The Portuguese government hopes that the changes will help families deal with their tax burden through subsidies associated with holidays and Christmas.

The National Association of Portuguese Municipalities (ANMP) argued that the payment should only be split into two instalments, in May and November. The association alerted that: “dividing the tax into three instalments will likely cause the municipal councils to suffer problems with cash flows.”

Original Story: Economia Online

Translation: Richard Turner