Incorrect fiscal value

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Kate11
Posts: 32
Joined: Sat Apr 02, 2016 8:23 am
Location: Portugal

Incorrect fiscal value

Post by Kate11 »

We've just discovered that our property in Portugal has a higher fiscal value than it should have. The authorities have accepted it's a mistake and are apparently quite prepared to correct it (normally this takes up to 30 days but we expect it could be longer because of Christmas etc) Obviously the IMI for several years has been based on its fiscal value so we assume we must have been overpaying for quite some time.
Does anyone have experience of this or know whether or not there's any kind of process to claim back the overpayment?
Thanks.
RichardHenshall
Posts: 414
Joined: Sat Sep 05, 2009 4:06 pm
Location: Luz, Algarve

Post by RichardHenshall »

We applied for a routine revaluation of our property in mid-November last year (as I understood that the value at 31st December is what determines the IMI to be paid during the next year). We received the re-assessment in early-December which contained a mistake (on their part) which initially went unnoticed by us. When their mistake was pointed out to them on our next trip to Portugal in February, they accepted that it was their fault and re-re-assessed, producing a further reduced value in March. Although it was too late for the first IMI instalment due in April, we have ended 2016 as if the March 2016 value had applied at 31st December 2015.

You don't say whether the mistake was their mistake or yours, as I doubt that you will get a refund if it's your mistake.

I'm sure the answer to your question will lurk in the Código do Imposto Municipal sobre Imóveis which starts here. If it's their mistake then Artigo 115.º - Revisão oficiosa da liquidação e anulação might give you some hope.
Kate11
Posts: 32
Joined: Sat Apr 02, 2016 8:23 am
Location: Portugal

Post by Kate11 »

Thanks Richard - that's great.
It was their mistake and only came up by chance but so far they've seemed surprisingly prepared to accept it. But I've sent the link to our property manager in Portugal as they've been dealing with this on our behalf and might find it useful.
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Rogthedodge
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Location: Praia da Luz, Algarve
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Post by Rogthedodge »

I think this is the same subject, the UK terminology being rates?

Just heard from my PM in the Algarve. He was concerned he had not had any notifications as to a rate demand for me, he contacted the powers that be and they said, his age (65, just) and lack of income in Portugal his rate demand is Nil...
What do you think of that, never heard the like??
Deary me am I real.

www.holiday-rentals.com/52179
RichardHenshall
Posts: 414
Joined: Sat Sep 05, 2009 4:06 pm
Location: Luz, Algarve

Post by RichardHenshall »

There have been exemptions (to IMI on primary residences) for years for reasons such as low income but until 2016 the taxpayer had to apply for the exemption. This year in an unfortunate attempt to use joined-up thinking the tax authorities decided to award the exemption automatically to those whom their records indicated were deserving. A side effect seems to be that many people (such as retired immigrants) who have foreign sources of income may have received exemption because of the way their income is declared/taxed in Portugal (or not, as may be :wink: ), rather than because they were genuinely low income. If, when you bought your property, you were incorrectly declared as PT resident (I was in 2004 but later corrected this), then you may have got this exemption.

I haven't seen a definite statement whether those who should have paid IMI will have to pay the 'arrears' when this gets straightened out.
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Rogthedodge
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Post by Rogthedodge »

Thank you Richard, sums it up as I see it. However, I am not a poor resident and feel that I should pay my way. Just noticed the resident bit, that was evident, so I may have to alter that as I as yet am not.
Deary me am I real.

www.holiday-rentals.com/52179
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