Amateur Chamber reduces IRS and keeps IMI low for families and businesses

A Amadora's Chamber will maintain the minimum rate of 0.3% in the urban buildings of the Municipal Property Tax and reduce participation in the IRS to 3.25%, in the context of tax relief for families and companies, the municipality announced.

In the proposal of the mayor, the socialist Vítor Ferreira, approved today with votes in favor of PS, PSD and Arrive and abstention of the CDU, and which will still be submitted to the Municipal Assembly of Amadora, are fixed the rates of the Municipal Property Tax (IMI) to be settled in 2027, concerning this year's collection, in 0.8% for the rustic buildings and 0.3% in the urban buildings.

According to the executive of the municipality of Lisbon, municipalities can benefit from a flat-rate reduction in the IMI, in family terms, of 30 euros for taxable persons with one dependent, 70 euros with two, and 140 euros with three or more.

In a statement, the municipality estimated that with the approval of this tax package, IMI, participation in the IRS – Tax on People's Income Singular and free to spill to small and medium-sized enterprises, “absides more than EUR 15 million of revenue for the direct benefit of households and the local business fabric”.

The adoption of the minimum rate of IMI of 0.30% and reduction according to the number of dependents, as an alternative to the maximum legal rate of 0.45% for urban buildings, represents a “low collection of about EUR 10.6 million”, refers to the proposal, which Lusa had access to.

“ Specifically, the application of fixed deduction by dependents (Family IMI) translates into a direct reduction in revenue of 528.170 euros in favor of the municipality's households ", highlighted the municipality.

As for the variable participation in the IRS, in the incomes of 2027 and to be applied in 2028, “the fruit of a political understanding between the PS (which governs the City of Amadora), the PSD and the Aquiva”, was fixed at 3.25%, with the vote against the CDU.

“The adoption of the intermediate rate of 3.25%, as an alternative to the application of the maximum rate of 5%”, represents “a lower municipal revenue of around 4.26 million euros, resulting in an estimated average tax benefit of approximately 105 euros per household that pays IRS”, the proposal points out.

The fall in the rate to 3.25%, compared to the maintenance of the 3.5% rate of the previous year, represents “a forecast reduction in municipal revenue of approximately €608,000”.

At the executive meeting it was also approved, unanimously, the release of a drop on the taxable profit subject and not exempt from IRC (Collective Persons Income Tax) for 2027.

The document provides a 1.5% drop on the profit of companies with turnover from EUR 150 000 in 2026 for this year and exemption for taxable persons not exceeding that value.

The exemption for businesses with up to EUR 150 thousand “is part of the municipal strategy to support the local business fabric, to encourage business creation and to promote employment”.

“The average tax savings for taxable persons covered by this measure are estimated at EUR 214” and the financial impact corresponds to an estimated reduction in potential revenue to pour “in the order of 5.11%, equivalent to about EUR 405,000”.

“ This trajectory of fiscal relief consolidates a strategic vision of the city that places the protection of families at the center of local decisions and stimulates the business fabric as a future engine of the municipality ", said the mayor, Vítor Ferreira, quoted in the note.

The executive of Amadora municipality is composed of four PS elected, including the president, four of the PSD/CDS-PP/PPM/MPT/RIR coalition, two of the Aquida and one of the CDU.