Vila do Bispo maintains a minimum IMI tax and returns 5% of IRS to residents

This decision implies a drop in municipal revenue of approximately 200 thousand euros

The Vila do Bispo Council will maintain the minimum rate of the Municipal Property Tax (IMI) and return 5% of the Income Tax for Individuals (IRS), the municipality announced this Friday, December 3rd. 

These proposals were presented, discussed and voted in favor at the executive meeting on 25 November, now awaiting approval by the Municipal Assembly.

With regard to the Municipal Property Tax, the municipality also decided to maintain the so-called family IMI, which allows for lower amounts paid by households, depending on the number of dependents.

Families with one child benefit from a 20 euros deduction, with two dependents the reduction is 40 euros and, with three or more children, the reduction is 70 euros, and this discount is automatically deducted from IMI, for families signaled through the IRS declaration of the previous year, with tax domicile in a building intended for permanent housing in the municipality.

In 2022, «the City Council relinquishes the entire IRS revenue to which it is entitled (5%) in favor of its residents, in relation to the previous year's income, calculated on the respective net collection», says the municipality.

According to the financial regime of local authorities, the Chamber is entitled, each year, to a variable share of up to 5% in the IRS tax, the municipality of Vila do Bispo deciding to abdicate these.

This decision implies a drop in municipal revenue in an approximate amount of 200 thousand euros. The measure applies to 2022 income and will have effects on the municipal revenue for the 2023 fiscal year.