Communities offering family IMI discounts increase by 8% | Taxes

The number of municipalities that have decided to join the family IMI this year and that have given families with dependents a reduction in municipal property tax rose by 8% to 253, according to the Ministry of Finance.

It is a tax advantage that was first applied in practice in 2016 and is reflected in a tax rebate for families residing in municipalities that notify the tax and customs authorities (AT) of their intention to apply the measure.

According to an official source from the Treasury Department, 253 municipalities have indicated for the 2020 tax (payable starting next May) that they intend to include families with this discount.

The figure represents an increase of 7.7% over the 235 municipalities that joined the family IMI last year (for the 2019 tax).

In the municipalities where the family IMI is used, families with one dependent are granted a deduction of € 20, € 40 with two dependents and € 70 with three or more dependents.

The haircut is applied after the value of the IMI has been calculated, i.e. the amount resulting from applying the IMI rate in force in the municipality to the tax equity value of the property.

A family with two dependents who own a property (that they use as their own permanent home) with an equity value of 80,000 euros in a municipality that has chosen to apply a rate of 0.3% pays IMI 200 euros instead the 240 euros you would pay without a tax break.

The family IMI was first used in 2016 (for the 2015 tax). At this point, a percentage discount was granted depending on the number of dependents. This year only 130 municipalities applied the discount.

The following year the model was changed and replaced with a fixed discount per dependent.

According to the applicable regulations, it is incumbent on the municipalities, by resolution of the municipal assembly “to reduce the municipal property tax rate applicable in the year to which the tax relates to the building or part of a municipal building in which the taxpayer or his family have their own and should have permanent housing, and which is effectively assigned to this purpose. “

This decision must be communicated to AT by December 31 of the year to which the tax relates. Before that, by September 15, AT sends the number of households with one, two and three or more dependent persons to the municipalities that “have a tax residence in their territory in a building or part of a building designated for their own permanent residence ”.