#find #entitled #payment #exemption
Municipal Property Tax (IMI) rates are set annually by the Municipalities in the area where the buildings are located. Payment of IMI can be made in full or in installments. Find out if you are entitled to request payment exemption.
IMI: exemption is automatically granted
In Portugal, IMI replaced the “local authority contribution” on December 1, 2003. This tax is levied on the tax asset value (VPT) of properties, including a single rate of 0.8% in the case of rustic buildings (land). and a rate that varies between 0.3% and 0.45% on urban buildings (constructions and land for construction).
This tax is calculated and charged by the Tax and Customs Authority (AT), but it is the local authorities that decide, every year, what rate they intend to apply in their municipality, within the aforementioned ranges.
According to Deco, some properties are exempt from paying municipal property tax (IMI), but there are taxpayers whose low income also entitles them to exemption.
Some taxpayers are entitled to an IMI exemption for three years. To do so, the property must meet all of these requirements:
- allocate to own and permanent housing of the taxpayer or his household (this must be his tax residence); it must become permanent housing within six months of acquisition or completion of works, if applicable;
- have one tax asset value equal to or less than 125 thousand euros;
- the owner must have annual income subject to tax (taxable income) up to 153,300 euros.
The exemption is automatically granted by the Tax Authorities, within the first three years after acquiring the property.
A Deco also states that a household with gross annual income up to 15,469.85 euros (16,398.17 euros for the 2024 IMI, to be charged in 2025) and who owns properties (rustic or urban) with a taxable asset value of up to 67,260 euros (71,296.40 euros for the 2024 IMI) does not have to pay IMI.
