Monday’s headlines claim this year’s rates demands “could see increases of as much as 500%”. But before we instil panic among our readership, we should stress this is only “worst case scenarios”. More likely, says the Portuguese order of chartered accounts, are rises of between 35%-40%.
The reason for the shock is that a safeguard put on houses that have been re-valued has now been lifted.
The safeguard pegged any increases to below €75.
Now that it has been removed, homeowners face increasing uncertainty, however.
Domingos Azevedo, president of the order of chartered accounts, told Dinheiro Vivo and Diário de Notícias, that “after revaluation, the average rates increases round out at 350-400%”.
“Properties purchased since 2000 face the most significant increases,” he added.
Elsewhere, the association of Lisbon property owners has fanned the controversy by suggesting some increases could increase 8000%.
Luís Menezes Leitão claims he knows of cases where “rateable value has increased 1000% and 8000% – rises that will “now be reflected in the cost of IMI (rates)”.
This has prompted the association of real estate agents to wade into the furore, declaring “Portuguese families are not ready for these increases”.
“Property cannot be see as a way of reaping easy money”, Luís Lima of APEMIP told Diário de Notícias.
But it could all be a storm in a teacup. The bottom line is only 30% of Portuguese are going to suffer increases, suggests DN – while the State is due to rake in 10% more in rates payments this year than last. A ball-park figure of €1.63 billion.
To find out whether your home is one of those affected by the increases, watch your postbox. Rates demands have already started being sent out and are payable next month.
natasha.donn@algarveresident.com
