Taxes and fees generated 3.8 billion euros in municipal coffers last year. IMI is the most relevant tax, but IMT (property purchase tax) revenues soared 38% in 2021, mirroring the resumption of real estate transactions after an atypical year due to the Covid-19 pandemic. The Financial Yearbook of Portuguese Municipalities, reveals that the IMT charged by Lisbon represents 19.6% of the total revenue from this tax at the national level.
According to ECO, the total of taxes and fees charged by the municipalities increased by 10.44% compared to 2020. Tax revenue is of great importance in the total municipal revenue as it contributes, on average, to 38.4% of it, although this weight varies with the size of the municipality. “In 2021, in small-sized municipalities this average stood at 16.3% of total revenue, in medium-sized municipalities it rose to 36.2% and in large ones to 54.5%”, details the yearbook.
Direct taxes contributed to 89.7% of tax revenue (3.41 billion euros), indirect taxes only weighed 1% (36.2 million euros) and fees, fines and other penalties 9.4% ( 356 million).
Among direct taxes, the highlight goes to the Municipal Property Tax (IMI), which generated revenue of 1.48 billion euros, the most significant in fiscal terms, but which still represents a reduction of 1.1% compared to the previous year, taking into account that 85 municipalities chose to lower the rate of this tax that is levied on the taxable asset value (VPT) of rural and urban properties located in the territory. However, there were 13 municipalities that, despite having reduced the IMI rate, had an increase in the amount collected. The most significant cases were those of Grândola (+5.4% in revenue), Alcanena (+2.6%) and Penela (+2.5%).
Almost 20% of all property purchase tax generated in Lisbon
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