Together with the proposed 2012 Portuguese Budget is a document proposing rectification to the 2003 general property reform. The 2003 changes established a 10 year period to achieve a general revaluation for tax purposes of all property in Portugal.
In addition the Memorandum of Understanding concerning the economic assistance promised earlier this year to Portugal by the EU and IMF established a promise that the conclusion of the general revaluation should be achieved by the end of 2012. Thus the Government has made various alterations to the IMI Code (CIMI) in order to regulate the general revaluation of urban property including alteration to the body responsible for achieving this.
As from 01.01.2012 the old rules established to value existing property will be revoked and there will be a general revaluation of all properties that have not been revalued since 01.01.2004.
This general revaluation will be led by the Finance Department (DGCI) assisted by other authorities and the l conocal Câmaras who will be obliged to send property plans either electronically, or in paper format, to the Finanças to assist with valuation. It will not be obligatory for the property to be visited to be revalued and the new values obtained will come into effect on 31.12.2012 for payment of IMI in 2013.
There will be some changes to the existing formulas used to value property and the levels of those will be established by 30.11.2011.
Notification of the new values will be made electronically where possible and by registered post where not.
There will be a period of 30 days in which an appeal can be lodged and a second valuation requested at a cost to the taxpayer of not less that €204. This second valuation must be made within 60 days of original notification of the valuation.
Sovereign comment: Many properties that have been registered with the same title holder for many years including those held by companies could see a dramatic increase in the tax value. Fortunately there has been a “capping” limit written into the legislation whereby any increase in the IMI payable for the years 2012 and 2013 is limited to the greater of either €75 or 1/3rd of the difference between the IMI payable following the general valuation and that paid due for the year 2011. What happens after 2013 we wait to see!
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