The issue of increasing IMI on vacant buildings has returned to the political agenda with the proposal approved by the Porto City Council. The executive argues that the current process is too complex and demands that the Government carry out an evaluation leading to the simplification and strengthening of this fiscal measure. The goal is clear: to penalize vacant properties, bring life back to the urban fabric, and contribute to the population’s quality of life.

Why the increase in IMI is important

The Municipal Property Tax (IMI) is paid annually by all property owners, but when it comes to vacant properties, vacant properties in areas of urban pressure, or those considered to be in a state of degradation, the law allows municipalities to apply increased rates. The increase in IMI on vacant buildings is precisely intended to combat speculation and encourage rehabilitation, preventing urban centers from being filled with abandoned properties.

However, the practical experience of municipalities shows that applying this measure faces significant obstacles. Many processes are prolonged due to legal exceptions, inspection difficulties, and the possibility of legal challenges from property owners.

Problems identified by municipalities

The Porto City Council, like other municipalities, highlights several procedural difficulties. Among the main ones:

  • The difficulty in proving unequivocally that a property is vacant;

  • Legal exceptions that allow owners to avoid the increase by providing various justifications;

  • The excessive time required to apply the penalty;

  • The absence of digital mechanisms for cross-referencing information between public entities.

These obstacles slow down municipal action and reduce the impact of the measure, even in situations where the existence of abandoned buildings in the city center is evident.

Effectiveness in degraded buildings

Despite the difficulties, the municipality emphasizes that applying the IMI increase to vacant buildings has been more effective in the case of degraded properties. In these, there is a direct link between the state of the building and the risks to public health and safety. In addition, neighbors and tenants of adjacent buildings often report situations, increasing the likelihood of inspections and the effectiveness of penalties.

For this reason, the proposal approved in Porto stresses the importance of reinforcing this strategy by increasing penalties on degraded properties. Besides combating the inaction of some owners, the measure also acts as a pressure tool to ensure regular maintenance and rehabilitation works are carried out.

A national problem

The discussion is not limited to Porto. Municipalities across the country have expressed similar concerns about the difficulty in implementing the IMI increase on vacant buildings. Mayors from different political parties stress that the law has existed for two decades and, paradoxically, the application process has become increasingly complicated.

This complexity creates frustration not only for municipalities but also for the population. The presence of abandoned buildings in the heart of cities undermines urban attractiveness, increases insecurity, and deteriorates the image of public spaces.

Repercussions on housing policy

The issue is especially relevant at a time when Portugal is experiencing a housing crisis marked by a lack of available homes and rising prices. Increasing IMI on vacant buildings could, if applied systematically, release thousands of currently unused properties onto the market. This fiscal pressure has the potential to encourage owners to rehabilitate or rent out properties, contributing to increased housing supply.

The Porto City Council wants the Government to take a more active role by simplifying regulations, creating uniform criteria nationwide, and ensuring mechanisms that allow penalties to be applied quickly and effectively.

Future perspectives

The proposal approved in Porto received unanimous support from political parties, showing political consensus on the need to review this process. The next step will depend on the national debate and the central government’s ability to respond to local demands.

The future of increasing IMI on vacant buildings lies in finding a balance that punishes speculation and encourages urban recovery, without creating endless bureaucracy or excessive exceptions that nullify the impact of this fiscal measure.

On the horizon is the possibility of a simpler, more effective, and fairer legal framework for all, where municipalities can act swiftly, and taxpayers have clear rules. For the city of Porto, and for many others in Portugal, this transformation could make all the difference in the fight for urban rehabilitation and against the abandonment of historic centers.