Taxable property value (VPT)
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The valor patrimonial tributário (VPT) is the value the Tax Authority assigns to a property to calculate taxes, and in Tax Authority auctions it is the starting point for the base value.
The valor patrimonial tributário is printed on each property's (caderneta predial). For urban properties used for housing, commerce, industry and services, it comes from a formula in article 38 of the IMI Code, which multiplies a base construction value by the area and by coefficients for use, location, quality and comfort, and age.
The VPT is not the market value. It can be well below or, in some cases, above the price at which similar properties sell.
Example
Illustrative example: a flat has a VPT of €100,000. In a Tax Authority auction, the announced is 70% of that, i.e. €70,000. If there are no bids, the sale moves to with a base value of €50,000 (50%).
In practice, at an auction
In Tax Authority sales, the value of urban property is the VPT and the announced base value is 70% of it (CPPT articles 248 and 250). Where the market value is clearly higher, the law allows an expert valuation.
In civil enforcement, the base value is the higher of two figures: the VPT, if the assessment is less than six years old, or the market value (CPC article 812(3)).
For , the general rule is to pay on the higher of the price and the VPT. For purchases in a judicial or administrative sale, the tax is charged on the price (IMT Code, article 12(4), rule 16).