Government Extends IMI Property Tax Deadline in Fire-Ravaged Areas
The Portuguese government has enacted a decree-law to provide financial relief to property owners in areas affected by this summer's devastating rural fires, officially extending the payment deadline for the second installment of the Municipal Property Tax (IMI). The measure, promulgated by the President of the Republic this past weekend, is a central component of a wider package of support initiatives aimed at mitigating the economic and social consequences of the fires. The Ministry of Finance is now tasked with issuing a formal dispatch to define the new, extended deadline for the tax payment, which was originally due at the end of August.
The legislative text specifies that the extension applies to all taxpayers, both individuals and companies, whose tax-registered address or property is located within the perimeters of the parishes officially designated as affected by the fires in a Council of Ministers' resolution dated August 21. The decree-law, numbered 98-A/2025, underscores that the primary goal is to support the recovery of affected communities. It states, "it is also necessary to establish measures of support and mitigation of their impact, on the people and companies affected." The law also ensures that taxpayers who meet the new deadline will not face any additional charges or penalties, a move designed to alleviate the financial pressure on those who have suffered losses.
This tax deferral is one of 45 distinct support measures approved by the government to address the crisis. The comprehensive aid package is designed to facilitate the reconstruction of homes, support the recovery of local economic activities, provide direct assistance to farmers, and fund the repair of damaged public infrastructure and equipment. A significant portion of the effort is also dedicated to environmental recovery, including reforestation and the restoration of biodiversity in the affected ecosystems. The legal framework was structured to allow for the rapid implementation of these measures without the prerequisite of a formal declaration of calamity, thus accelerating the delivery of aid to those in need.
The process for damage assessment will be managed at the local level, with municipal authorities conducting evaluations and reporting their findings to the respective Regional Coordination and Development Commission (CCDR). These reports, which will include cost estimates from joint inspections, will form the basis for the allocation of support funds. In a move to ensure accountability, the CCDRs will forward all damage assessments to the Public Prosecutor's Office. This step is intended to facilitate any potential civil or criminal investigations into the origin and propagation of the fires, as the decree explicitly states that the support measures do not preclude legal liability for those who may have contributed to the disaster.
A spokesperson from the Ministry of Finance stated, "This is a necessary step to ensure that families and businesses have the breathing room to focus on recovery without the immediate pressure of tax obligations. Our priority is to stand by the communities that have been so tragically impacted." The government's swift action provides a crucial, albeit temporary, financial buffer for property owners, including many foreign investors and expatriates with holdings in Portugal's rural regions. The measure reflects a coordinated response to a recurring national challenge, aiming to provide both immediate relief and a framework for long-term recovery. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.
