# Council Tax



## morro (Jul 2, 2008)

I bought a house in 2005 and had 6 years free tax, then they extended it to 8 years! However my time is up this year. Just my luck they are revaluing all houses in P.t. What is happening in Tavira? Has anyone been revalued and or received a bill?


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## canoeman (Mar 3, 2011)

If you bought a house in 2005 then it will have been revalued under new scheme, that's not to say it might not have been revalued again, but even if you've had the exemption you should still have been notified of any changes to the VPT (CIMI) that is on the bottom of your Cadeneta Predial Urbana from Financancas.

Tavira IMI for 2013 is 0.3% for VPT on new scheme and 0.6% on property land that has not been re-valued under new scheme. IMI is your VPT x %
Bills aren't sent out till March


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## jerryceltner (May 15, 2012)

Just a word of warning.
We as Morro has said had 6years free of IMI and then it was increased to 8 years. Our house was made up of 4 plots 2 being the house and garage and the other 2 being the land. Strange but true.
I received a bill from the Financias for 16 euro for IMI and thought it was a mistake so left it as I wrongly thought that the whole property was exempt. In fact it is only the house and garage that are exempt not the land.
I eventually paid it but I was late so I got a fine which I also paid.
At the beginning of December I received a letter from the Financias saying that the rest of my 8 year term had been cancelled and the following week I got a bill for 312 euro for the first 6 months and will receive one in March for another 312 euro.
So it has cost me 624 euro for not paying the land part of 16 euro which I was unaware of. Everybody out there make sure you pay on time because it can be very costly.
I have reapplied again for the portion of my 8 years which is left. Let's see if I get it.


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## canoeman (Mar 3, 2011)

Think you might be misreading it Jerry, the bill sounds like the IMI for your 2 Articles with buildings on
Exemptions according to Financas bible are charged
b) In the year next following that in which the exemption ceases;
So not quite sure why you've already received a bill, but the Article/ref number should be cleary shown in the first column

Nothing unusual in having different Article numbers for different plots within 1 ownership, each Article has a VPT value that has a IMI charge or exemption.

IMI is calculated as ownership at 31st Dec, billing is March the following year, 4 payment options
Pay total by end April
if IMI
< 250 pay by end April
250 to 500 equal payments April, November
500+ pay 1/3 equal payments April, July, November


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## anapedrosa (Mar 21, 2011)

If you register on Finanças for an online account, you can view your total financial tax situation. Though I have found learning to navigate the site a bit of a challenge, I think it's worth it.


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## jerryceltner (May 15, 2012)

Hi Canoe, I went with a Portuguese friend to the Financias that the reason I was told was the fact I was late in paying that's why the excemption was cancelled. I have lost one year but would have another 2.5 years if the application is successful. We went to the Entroncamento and the Tomar Financias and both gave the same reason.

As for being online I am but at the moment my accountant has changed the passwords to his to fill in all the returns and once he does that he changes them back.


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## canoeman (Mar 3, 2011)

Exemptions have all been scrapped from 2013, I wouldn't have thought that late payment on a non exempted IMI bill would affect anything else, but then Finanacas have a very peculiar way of dealing with and applying rulings, let alone admit they might have made a mistake


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## jerryceltner (May 15, 2012)

Hi Canoe,
This is most confusing. If the exemptions have been scrapped from 2013 then why oh why did he fill in the application form for me to reapply for the portion of the excemption left.
This was done a week before Xmas. He would have surely known this info in advance and told us no chance and not wasted his time in filling out the form........crazy......


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## canoeman (Mar 3, 2011)

Why do Financas do a lot of things they do, maybe for year you lost? but as far as I know IMI exemption for 2013 onwards are only for low income families with gross income of less than 14,630€ and a VPT value of less than 66,500€


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## anapedrosa (Mar 21, 2011)

I've seen that before, 'apply, you never know' and with the inconsisency of the way the rules are applied, it's true, you never know. Maybe you'll get lucky.

I had suggested the online site, because I thought it would list all of the assets and the tax liabilities separately. For example, I was surprise to see that my the property that I bought with my husband (he and I were common law at the time) was listed as 50% each and we each have to pay our own tax bill.


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## canoeman (Mar 3, 2011)

Each person has a separate Tax number (although IRS returns are filed as a family unit) how ownership of property, cars etc depends on how they where purchased and registered with Financas and Conservatoria, it would seem that yours has been registered as 50/50 ownership, beware it could be an expensive issue to alter Financas could well charge IS (Imposto selo/Stamp Duty) at 10% of the VPT value plus a new Escritura and registration is required at Conservatoria., unless you could show an error has been made.

Financas being who they are, pay the IMI seperatly as billed, if you paid one amount they wouldn't credit half to other person and would issue a fine for non payment


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## anapedrosa (Mar 21, 2011)

I was just assuming that we would continue to pay separately. Because I am Portuguese the succession law will apply to me, so 50/50 ownership is something we are taking into account. But once we're there and requesting the habitation license, I will seek additional advice.


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## Lieschen (Nov 5, 2012)

On this subject - does anyone knows if tenants have to pay council tax or does the home owner?


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