Home News Record tax take during ‘crazy year’ for real estate

Record tax take during ‘crazy year’ for real estate

Published on August 06, 2019

property upLast year, 178,691 properties were sold in Portugal, 16.6% more than in 2017, an average of 490 homes per day.

These sales totaled €24.1 billion, 24.4% higher than in the previous year and leading to a record tax take from the Municipal Tax on Real Estate Taxes (IMT) and Municipal Property Tax (IMI).

In the case of IMT, which is calculated from the value of the deed or the Valor Patrimonial of the property, the State received €998.3 million, 20.2% more than in 2017.

This is the highest value since at least 1995, the year in which the National Statistics Institute (INE) started collecting data.

The previous peak was back in 2007, when IMT generated revenues of €972.6 million.

The income from IMI, the annual property tax paid to the Treasury, was €1.663 billion in 2018 – the highest since this tax was created in 2003 when it replaced the Municipal Tax.

“IMI recorded an increase in revenue of 6.2%, which corresponds to a nominal growth of 97.4 million euros,” reads the Statistics Institute website.