How is the Patrimonial Taxable Value of a property calculated?

IMI is calculated taking this indicator into account. H URB explains how it is determined.
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Throughout the month of May, the payment of the Municipal Property Tax (IMI) is taking place. Taxpayers are called upon to pay a value on their properties, and the amount collected is channelled to the municipalities.

Here, in the H URB Blog, we have already explained how the value of the IMI is calculated. But we have not yet explained one of the main components: the Patrimonial Taxable Value (“Valor Patrimonial Tributário”, VPT). Therefore, with the collaboration of our partners from the SUPERCASAportal, we will discover what this indicator is.

Beyond a simple value…

In a very simplistic way, the VPT is the fiscal value of a certain property. However, the calculation of this value is anything but simple: the VPT is the sum of a complex set of components and the calculation is differentiated if it refers to urban or rural buildings. In addition to being used to calculate IMI, the VPT is used, for example, to calculate stamp duty.

The components which comprise the Urban Land Transfer Value are

  • Base Value of Buildings (Vc)
    According to the Municipal Property Tax Code (CIMI), the Vc is the average cost of construction per square metre.
  • Gross Building Area (A)
    It is the sum of the gross dependent and private areas of a property applied to a formula that results in a coefficient that starts at 1.
  • Coefficient of Assignment (Ca)
    It is the form of use of the buildings, and the coefficient applied is variable, something that is established in the CIMI.
  • Coefficient ofLocation (Cl)
    It has to do with the location of the property and what type of services exist in the area, from accessibility to the existence of schools or commerce, resulting in a coefficient that ranges from 0.4 to 3.5.
  • Coefficient of quality and comfort (Cq)
    It is related to the characteristics of the property, such as having an individual garage, being in a closed condominium or not being connected to the public water supply, for example. Each characteristic corresponds to a coefficient, and the present and missing coefficients are added or subtracted, respectively, resulting in a coefficient that can go up to 1.7.
  • Vectoring Coefficient (Cv)
    It is the number of complete years since the property’s utilisation permit was issued, or since the date the building work was concluded. The coefficient begins at 1, when the property is less than two years old, and goes up to 0.40, when the property is more than sixty years old.

The TPV is then calculated by means of the following formula, which joins all the components together

VPT = Vc x A x Ca x Cl x Cq x Cv

The result obtained from this formula is then rounded up to the nearest ten euros (for example: if the result obtained is 9,992 euros, the NAV will be 10,000 euros).

Taking into account all the components, the NAV varies over the years. However, there is a simulator on the “Portal das Finanças“, which helps you calculate what the value of your property should be, by filling in all the fields.

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