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IMI Rate on Empty Homes Set to Rise Six-Fold in Areas Subject to Housing Pressure

27 March 2019 – Richard D. K. Turner

The Portuguese government recently gave municipalities the right to triple the IMI rate on buildings that have been left vacant for more than a year. A new legislative amendment, however, which was approved by the Council of Ministers, has further increased the pressure to utilise vacant homes. In cases of properties located in areas suffering from housing pressure, or a situation of excess demand, homes that have been vacant for more than two years may suffer a six-fold increase in their IMI tax rate, the Jornal Expresso reported.

Residential properties whose owners have registered as second homes with the Finance Ministry, however, will not be subject to a surcharge if the property is located in a different municipality from the owner’s permanent residence, even if it has been vacant for more than one.

Currently, the law stipulates that properties that are used “for short-term housing on beaches, the countryside, hot springs and any other such places, whether for temporary rentals lease or own use” are not considered vacant. Therefore, properties located in tourist developments or registered as local accommodation establishments and secondary dwellings will be exempt from the surcharge, though only if the owners’ permanent residence is not in the same municipality.

Original Story: Jornal Expresso