, , , , , , , , , , ,

The “VPT” of your property is not directly related to construction costs or its market value (except for the soon-to-be-overhauled Location Coefficient). The Property Evaluation System (“Valor Patrimonial Tributário or VPT”) is a mathematical formula comprised of six factors, working as follows:

VPT = Vc  x  A  x  Ca  x  Cl  x  Cq  x  Cv

Factor nº1:  “Vc” – the deemed value per m²

After several years without change, this value rises to €615.00 in 2019.

Factor nº2:  “A” – Constructed Area and Implantation

The property areas (“A”) are a function of the presumed cost base of the constructed area and implantation. From the current Area Value of €615.00, the specific values are determined as follows:

                           Type of Area Coefficient
Covered Habitation Area 1
Outbuildings 0.3
Garden and Patio areas

(up to 2x implantation)



Surrounding land 0.005

To calculate this factor, add the different areas, previously multiplied by the above coefficients, then multiply by the cost per m² (€615).

Next, this base is altered by the following coefficients.

Factor nº 3:  “Ca” – Type of Usage (0.08 – 1.2)

The next factor is Usage (residential, commercial, industrial, agricultural), each having been assigned coefficients. For Residential Usage, the coefficient is 1.0.

Factor nº 4:  “Cl” – Location   (0.3 – 3.0)

The Tax Authority has plans to recalculate the Location Coefficient (“CL”) of immovable properties. The reform targets updates at 85% of average property prices in a given area. The new localisation component should be approved by December and come into effect in January of 2020.

Factor nº 5:  “Cq” – Quality of Construction  (0.5 – 1.7)

This component works in opposing directions: attractive features, such as a swimming pool or central air conditioning, push up the value of your home. Living on a dirt track, as opposed to a tarmac road, diminishes the appraisal.


                                                          Fixed Rate Components
Increase:                                             %

Closed Condominium                 0.20

Single Garage                               0.04

Collective Garage                         0.03

Private Swimming Pool              0.06

Collective Swimming Pool         0.03

Tennis Court                                  0.03

Other Leisure Equipment           0.04

Central Air Conditioning            0.03

Elevator (< 4 stories)                    0.02


  Decrease:                                                    % 

No kitchen                                         0.10

No bathroom                                     0.10

No running water                             0.08

No electricity                                    0.10

No gas                                                0.02

No sewage system                            0.05

No paved road                                  0.03

Diminished living quarters             0.06

No elevator ( >3 stories)                 0.02

In poor repair                          up to 0.10

Variable Components:

Single Family Dwelling    (0,0 – 0.20 %)

Construction Quality          (0.0 – 0.15 %)

Exceptional Location        (0.0 – 0.10 %)


Factor nº 6:  “Cv” – Age of Construction   (0.4 – 1.0)

Finally, the last coefficient is applied according to the year of construction, ranging from 1.0 for new property and 0.4 for buildings over 80 years old.