Portuguese Government Extends IMI Property Tax Deadline in Fire-Ravaged Areas
The Portuguese Government has officially approved an extension for the payment deadline of the Municipal Property Tax (IMI) for property owners located in the zones affected by this summer's rural fires. The announcement was made via a decree-law published in the Diário da República this past Sunday, which outlines a series of support measures. The second installment of the IMI, which was originally due by the end of August for liabilities over €500, will now have a new, later deadline to be determined by a forthcoming dispatch from the Ministry of Finance.
This legislative action is a direct response to the widespread damage caused by the fires. The decree-lei explicitly states that the compliance deadlines for tax and social security obligations can be exceptionally extended by the government. The measure is designed to provide financial relief to families and businesses grappling with the aftermath of the destruction. The specific geographic areas that will benefit from this extension are to be formally delimited in a subsequent resolution by the Council of Ministers, and the relief will apply to any taxpayer with a registered residence or tax domicile in the designated parishes.
The IMI payment extension is a central part of a comprehensive 45-point aid package announced by the Prime Minister last week. This package aims to provide a multi-faceted response to the crisis, which has resulted in fatalities, injuries, and the significant loss of residential properties, agricultural businesses, and forest land. The government's swift action, with the decree being promulgated by the President of the Republic on Saturday and published the following day, underscores the urgency of the situation.
Beyond the tax deferral, the government has also instituted a simplified lay-off regime. This allows companies in the affected regions that are facing an economic crisis to reduce working hours or suspend employment contracts, thereby preserving jobs while managing financial distress. This measure is similar to one implemented in response to the fires of the previous year, indicating a developed government strategy for handling such events. Workers under this regime are guaranteed at least two-thirds of their gross salary.
The broader support package also includes provisions for psychosocial support for affected populations, free dispensation of necessary medications through the national health service (SNS), financial aid for the reconstruction of both primary and secondary homes, and partial or total exemption from social security contributions for impacted companies. These measures collectively aim to provide a robust safety net for those who have lost homes, livelihoods, and assets in the fires.
For property owners and real estate investors in Portugal, this decree provides important, albeit temporary, financial relief. The Ministry of Finance is expected to provide clarity on the new payment date and the full list of covered localities shortly. The government's response demonstrates a clear policy of intervention to support property owners during times of natural disaster.
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