IMI PROPERTY TAX RATE REDUCTION IN FUNCHAL, MADEIRA 2017

The average IMI property tax rate in the 11 Municipalities in Madeira and Porto Santo has been 0.307%.

None of the municipalities have opted to apply the maximum rate for 2016 year, 8 have opted for the minimum, Funchal being the most populated, presently charges 0.32%.

Camara de Lobos charges the highest rate. Funchal’s municipality president has recently announced a reduction from 0.32% to 0.30% in 2017.

The calculation formula for property IMI TAX in Madeira is complex.  Although there has been improvement of the legislation on a yearly basis, much work is still needed for improvement on transparency and equality.

Property owners of ruins and property in need of major renovation will find that their new IMI Tax rate will be higher than the present property market value.  We have also researched some luxury resorts built on sectional title and their condominium units are carrying a much higher IMI Tax value than their present property market value.

Sellers of some luxury condo units will find that the current  IMI TAX value is higher than the present market value;  they would be wise in applying for a reduction.  For buyers – be aware!.

Should you be on the market or planning to buy or sell in Madeira, I would love to hear from you.

 

About Author: Tony Nobrega

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