Lisbon, Cascais, Sintra and Oporto councils are among 20 municipalities following the lead set by Olhão as each is to raise local property rates bills by 300% for unoccupied or derelict buildings in their areas.
The 300% IMI rise is the maximum allowable under new laws and these councils are working with local Finanças offices to send out rates notices showing the higher figures.
Homes that lie in ruins or simply have been empty for more than a year can fall into the latest tax trap that is expected to be used widely as councils see the opportunity to raise more funds.
Councils only now are in a position to apply the eye-watering increases as it is only recently that they been able to get hold of a list of properties that are not connected to water, electricity or gas supplies.
Low utility bills indicate that properties are not being lived in but for those properties that do in fact house people, the council rates increase letters can be returned with an explanation.
Menezes Leitão, president of the Lisbon Association of Landlords, commented that he has members who already have had to pay this 300% increase because they have been unable to rent out their properties.
Rates notices already have been sent out to all traceable owners of derelict properties in Olhão where the recent collapse of a abandoned and unmaintained property (see picture) caused local concern that this and other buildings in the historic centre are being allowed to fall down as the land they are on, if it can be used for development, is worth more than an 'old house' – however important the old building may be to the heritage of the city.
