IMI (Municipal Property Tax) exemption in Portugal can be granted under certain conditions, both permanently and temporarily. Here are the main criteria to benefit from this exemption:
Permanent Exemption
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Household Income:
The gross annual income of the household must be less than 2.3 times the annual value of the Social Support Index (IAS). For 2024, this value is approximately 16,422 euros.
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Taxable Patrimonial Value (VPT):
The global VPT of the household’s properties cannot exceed 10 times the annual IAS value. For 2024, this equals approximately 71,400 euros.
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Property Use:
The property must be intended for own and permanent residence, i.e., it must be the owner’s tax residence.
Temporary Exemption
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Acquisition of Own Residence:
Temporary exemption is granted for three years to new owners who acquire a property for own and permanent residence. The property’s VPT must be equal to or less than 125,000 euros, and the household’s taxable income cannot exceed 153,300 euros per year.
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Urban Rehabilitation:
Properties located in urban areas that need rehabilitation may also benefit from temporary exemption, provided they are recognized by the municipality.
Procedures
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Automatic Assignment:
Permanent exemption is generally automatically assigned based on available tax data. If the conditions are met and the taxpayer still receives an IMI charge, they must file a complaint.
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Exemption Request:
In cases where exemption is not automatically assigned, the request can be made through the Tax Portal or at a local Tax Service.
These criteria aim to support families with low income and reduced assets, promoting access to own housing and encouraging urban rehabilitation.