According to the regulation published in Diário da República, the price per square meter for IMI and property tax purposes will increase by 25 euros in 2023 to 665 euros.
We are talking about the average construction cost per square meter, which is set at 532 euros plus 25% in 2023, as defined by the Municipal Property Tax Code (CIMI).
“The average construction cost per square meter is set at 532 euros for the purposes of Article 39 of the Municipal Property Tax Code, which will come into force in 2023,” reads the decree signed by the Minister of Taxes and Duties. Nuno Santos Felix.
Thus, taking into account the CIMI formula, the value to be used in 2023 is 665 euros, which is the highest since 2003, when the IMI replaced the council tax.
The price per square meter of construction is one of the elements integrating the calculation formula of the system for assessing urban buildings and, therefore, determining their taxable value (VAT), from which the PMI rate is charged.
The price per square meter of construction is set annually by a government decree at the suggestion of the National Commission for Urban Development Appraisal (CNAPU).
Although it is one of the elements that affect the determination of a real estate VPT, this price does not apply automatically, but is reflected only in new constructions or in objects subject to modification or reconstruction, or after a new assessment, that is, it is applied to urban buildings, declarations for model 1 are submitted from January 1, 2023.
The price per square meter for the purposes of the base cost of constructed buildings was fixed at 600 euros in 2003 and 2004, rising to 612.5 euros in 2005 and 615 euros in 2006, which was maintained until 2008.
In 2009, due to the consequences of the financial and economic crisis, which have already begun to affect, it fell to 609 euros. A year later, it fell again to 603 euros, the level at which it remained frozen until 2018, rising to 615 euros in 2019, a value that remained until 2021. Last year it was set at 640 euros.