Tavira council, led by the Socialist mayor Jorge Botelho, has agreed to reduce its rate of Council Tax (IMI) for 2016 by 2.5% and reduce the tax charge for households with children.
The 'family IMI' reduction depends on the number of dependent children at home; 10% off for those with one child, 15 % for two and 20% for three or more.
As importantly, the family IMI reduction will be applied automatically without the need for families to submit any documents and "aims to contribute to family support by reducing the financial burden of home ownership," according to the council.
Overall, the general reduction and family reduction in IMI will "reduce the difficulties of Tavira’s residents in paying their taxes by reducing the tax burden of the Tavira population," according to today’s repetitive edict.
Tavira council is not alone in offering the family tax reduction as 70% of Portugal’s councils have applied to do so for next year, 215 councils in all, according to a swift phone around by the Portuguese Association of Large Families.
The number may grow still, but the dealdline now has passed for councils that wanted to register with the Tax Authority for the scheme.
The option of reducing IMI for families was approved by the last Government in the 2015 State Budget, leaving councils to apply or not, as they saw fit. As it stands, this benefit is only available for 2016 but may be extended by the current government when its budget is released.
The Algarve councils that did not apply for, or were refused the family tax reduction are, Faro, Lagos, Olhão, Portimão and Vila Real de Santo António.
