The price per square meter for the purposes of the IMI (Municipal Property Tax) and the fiscal evaluation of properties will increase by 25 euros this year, reaching 665 euros. This is the highest value since 2003, when the IMI replaced the Local Authority Contribution.
The average construction value per square meter in 2023 is set at 532 euros, to which a 25% increase is applied, as defined by the Municipal Property Tax Code (CIMI).
“The average construction value per square meter is set at 532 euros, for the purposes of article 39 of the Municipal Property Tax Code, in effect in the year 2023,” reads the decree signed by the State Secretary for Fiscal Affairs, Nuno Santos Felix.
Therefore, based on the CIMI formula, the value to be used in 2023 is 665 euros, the highest value since 2003, when the IMI replaced the Local Authority Contribution.
The construction value per square meter is one of the elements that makes up the formula for calculating the assessment system for urban properties and, consequently, the determination of their taxable property value (VTP), on which the IMI rate is applied.
The construction value per square meter is set annually by a decree of the Government, based on a proposal from the National Commission for the Assessment of Urban Properties (CNAPU).
Although it is one of the elements that determines the VPT of properties, this price is not automatically applicable and is only reflected in new constructions or properties that have been modified or reconstructed, or as a result of a new evaluation, that is, it applies to urban properties whose Model 1 declarations are submitted from January 1, 2023.
The price per square meter for the purposes of the base value of built properties was set at 600 euros in 2003 and 2004, rising to 612.5 euros in 2005 and 615 euros in 2006, a value that remained until 2008.
In 2009, due to the effects of the financial and economic crisis that were already beginning to be felt, it fell to 609 euros. A year later, there was a new decrease, to 603 euros, a level that remained frozen until 2018, then rising to 615 euros in 2019, a value that remained until 2021. Last year it was set at 640 euros.
About the Author
Jacob Manning lives in the beautiful Algarve in Portugal and helps foreigners relocate to Portugal via BuyProperty.com
