The Municipal Council of Castelo Branco approved a 20 percent reduction in the Municipal Property Tax aimed at urban buildings with active housing rental contracts. The deliberation was made during an extraordinary meeting of the municipal executive and provides for practical application in assessments to be charged to owners in 2027, pending final approval from the Municipal Assembly. The SEMPRE por todos coalition, which brings together PSD and CDS-PP in the municipality, highlighted that it had presented a similar proposal about a year ago, during municipal tax discussions for 2026, when the relief did not receive favorable reception from the majority.
Owners who wish to benefit from the IMI reduction will have strict administrative deadlines to meet. Interested parties must submit a formal application to the municipal services by November 15, providing documentary proof of the property's rental status. The application process requires submission of the updated urban property registry, a complete copy of the current rental contract, and proof of the last six rent payments made. The executive intends to cross-reference data with the tax administration to ensure the incentive covers exclusively properly declared dwellings placed on the formal housing market.
The opposition coalition councilor, José Augusto Alves, considered the deliberation timely, although late given the local housing reality. The councilor stated that the opposition had proposed this measure a year ago and regretted that it had not advanced at that time, welcoming however that it is now approved. The extraordinary session also served to set the municipality's variable IRS participation rate at 0.5 percent for fiscal year 2027, maintaining the guideline of a gradual decrease throughout the municipal term.
The center-right opposition sought to accelerate the relief and advocated for immediate setting of the rate at zero percent to ensure full return of the five percent to local taxpayers. The proposal was ultimately rejected, lacking support from the PS majority or the Liberal Initiative representation. José Augusto Alves criticized the adopted phasing, arguing that the municipality's budgetary situation would allow for faster revenue renunciation given the current cost of living. Both fiscal instruments unfold within a framework of progressive relief of municipal revenue, with direct impact on private accounts starting in 2027.
