The Tax and Customs Authority will review the Municipal Property Tax (CL) Location Coefficient (IMI) until the end of August to come into force in January 2020.
This factor contributes most to the worsening of IMI, and the tax authorities want to equate the tax value of the houses, on which the IMI calculates, to 85% of the average market price of the properties in each zone , said Correio da Manhã on Monday, pointing out that this review will force owners to pay more IMI.
The greatest impact of this review will be felt in the greater Lisbon, the greater Porto and the Algarve, precisely in regions where real estate prices have risen markedly since 2015.
IMI is the main source of revenue for municipalities, and generated € 423 million in 2017 alone, out of a total of 8.2 million urban properties that pay IMI.
The real estate experts who are going to make this update are currently in training and are going to the field in the month of May.