The Government has accepted proposals from the Left Bloc and the Communist Party to create a new tier in the IMI Additional Tax regime, raising the taxation rate on combined property assets above €2 million.
Of concern to only the wealthy, but yet another reason to question investing in Portuguese real estate, the current 1% rate will become 1.5% next year.
The AIMI, dubbed the ‘Mortágua tax’ will rise from 1% to 1.5% on combined property assets held by an individual, of €2 million and over.
This additional IMI rate was created in 2017 from Left Bloc proposals to sting individuals with total property assets of €600,000 or more, based on patrimonial values.
Between €600,000 and €1 million, owners pay a rate of 0.7%. Above this value the rate rises to 1%. With the approval of the new proposal, the 1% rate will be applied to real estate worth between €1 million and €2 million, and above €2 million, the rate for 2019 will be 1.5%.
