What is Municipal Property Tax (IMI)
Individuals responsible for properties are subject to the Municipal Property Tax (IMI). This tax's rate is determined by the municipalities where the properties are located. It is payable annually and can be settled in a lump sum or, depending on the amount, in up to three installments.
Deadline for IMI Exemption Application
The request can only be made after the address has been updated on the tax portal. It must be submitted within a maximum period of 60 days after the acquisition.
Calculation of IMI
IMI = Taxable Asset Value (VPT) x Applicable Rate
Payment Options:
In full (if the tax is €100 or less);
In 2 installments, in May and November (if the tax is between €100 and €500);
In 3 installments, in May, August, and November (whenever the tax exceeds €500).
Types of IMI Exemption
There are two types of IMI exemption: permanent and temporary, with the latter being more common. Both are calculated based on the household and the property's VPT.
TEMPORARY EXEMPTION
IMI exemption is granted for a period of 3 years, extendable for an additional 2 years (the latter possible only after the implementation of the "More Housing Program"). Families are eligible for this exemption if they:
Acquire a property for own or permanent residence;
The VPT is not higher than €125,000;
Their gross annual income does not exceed €153,000.
Each property owner or household can only benefit from this type of exemption twice.
PERMANENT EXEMPTION
To benefit from this type of exemption, certain conditions must be met, such as:
The property is for own or permanent residence;
The household's gross income does not exceed €16,398.17 (value for IMI 2024), meaning it does not exceed 2.3 times 14 IAS (Index of Social Support);
The total VPT of family properties does not exceed €71,296.4 (10 times 14 IAS).
How to Apply for IMI Exemption
For permanent exemption, everything is automatic, as the tax and customs authority (AT) already has all the necessary data.
For temporary exemption, you can apply online or in person. If applying online, you simply need to visit the tax portal and select the option "submit IMI exemption request
