Permanent Exemption from IMI

Certain taxpayers can qualify for a permanent exemption from IMI under the following conditions:

• Low-Income Households: In 2024, households with a gross annual income of up to €16,398.17 and who own properties with a cadastral (taxable) value of up to €71,296.40 are eligible. This exemption is automatically applied without any action required from the taxpayer.

• Certain Public Organizations: A number of government organizations also qualify for permanent exemption from IMI.

• Owners of Specific Types of Properties: This includes land designated for construction and certain other types of properties as outlined in Article 11-b of the CIMI (Municipal Property Tax Code).

Temporary Exemption from IMI for 3 Years

You may also qualify for a temporary exemption from IMI for a period of three years if all the following conditions are met:

• Primary Residence: The property must be the taxpayer’s permanent residence, or the permanent residence of their family. This means it must be registered as their tax residence according to their NIF (Tax Identification Number).

• New Residence Status: The property must become the taxpayer’s permanent tax residence within six months of purchasing or completing construction, or within six months of completing any renovations that change its cadastral (taxable) value.

• Property Value: The cadastral (taxable) value of the property must not exceed €125,000.

• Income Limit: The family’s gross annual income for the previous year must not exceed €153,300.

Additional Considerations:

• Outbuildings and Garages: This exemption also applies to storage spaces and garages, even if they are physically separate from the main residence, as long as they are part of the same building or residential complex and are used exclusively by the owner, tenant, or their family members as an extension of the primary residence.

• Extension of Exemption Period: The exemption period can be extended by an additional two years at the discretion of the municipal assembly (assembleia municipal).

• Limitations: Each taxpayer or household can benefit from a maximum of two IMI exemptions. Additionally, those applying for the exemption must not have any outstanding debts related to taxes or social security.

How to Apply for IMI Exemption

Typically, property owners do not need to apply for this exemption directly through the tax office. If the tax authorities already have the necessary information to grant the exemption, it will be applied automatically during the first three years after the property is purchased. However, if the Finanças (tax authority) does not have the required information, and you wish to obtain the exemption, you can apply for it manually through your account on the Portal das Finanças.

Step-by-Step Guide to Applying for IMI Exemption

Let's go through the process of applying for the exemption for a property with a cadastral (taxable) value of €125,000 or less:

1. On the main page of the Portal das Finanças, type "Submeter Pedido Isenção IMI” into the search bar
2. From the search results, select the first option “Submeter Pedido Isenção IMI” and click “Aceder”
3. In the “Motivo Isenção” field, choose the appropriate option (in this case, select option 01)
4. Fill out the form, providing the requested information about the property owners and the property’s identification
5. Click “Submeter” to submit your application