The Municipal Property Tax (IMI) is an annual obligation that falls on the shoulders of homeowners in Portugal. But there's a glimmer of hope: not everyone has to fork out this amount. Who, after all, is entitled to IMI exemption? And when buying a house, is this tax inevitable?
Let's get straight to the point: if you recently bought a new apartment for 155,000 euros, you're surely curious about IMI exemption. What are the current rules?
First, let's remember that IMI is an annual tax calculated based on the Taxable Asset Value (VPT) of properties held in the previous year. This means that the amount to be paid in 2024 refers to the properties you owned on December 31, 2023.
IMI is calculated by applying a rate to the VPT of properties, whether they are rustic or urban. These rates vary annually according to each municipality, ranging between 0.3% and 0.45% for urban properties and 0.8% for rustic properties.
As for your question about IMI exemption, here's what you need to know: urban properties intended for permanent residence and serving as the owner's tax domicile are exempt from IMI for three years, extendable for an additional two years, provided that the VPT does not exceed 125,000 euros and the household income does not exceed 153,300 euros.
Additionally, there are other cases of exemption worth mentioning:
Permanent exemption for families in economic vulnerability, with a gross income of up to 16,398.17 euros and a total VPT of properties not exceeding 71,296.40 euros;
Properties rented under the Rental Support Program (PAA);
Land or properties awaiting authorization for use works;
Touristic utility buildings;
Buildings undergoing urban rehabilitation.
