IMI – Am I exempt?

As we mentioned in a previous article, IMI is a tax on real estate that affects the equity value of urban or rustic buildings located in Portugal. It is a mandatory tax for all homeowners, however there are some situations that may constitute an exemption.

Do you know if you are exempt from paying your home’s IMI? These are the three most frequent cases in which you may be entitled to exemption:

  • Low income households (up to € 15,295 per year), whose property is intended for permanent own housing and whose Tax Asset Value is less than € 66,500, are exempt.
  • Households whose income is less than € 153,300 per year and who buy a property with a Tax Asset Value of up to € 125,000 are temporarily exempt (3 years).
  • Any property intended for rehabilitation for a period between 3 to 5 years is also exempt.

If in doubt, be sure to seek clarification and make an exemption request.

As a matter of general knowledge, there are still other exceptions regarding exemptions applied to institutions:

  • Real Estate Investment Fund Properties.
  • Properties that are the headquarters of Social Participation Management Companies (SGPS).
  • Buildings of political parties, religious orders, foundations, football clubs, cultural entities, and other diverse entities to which the State attributes the status of public utility or tourist utility.
  • Properties belonging to the State, both at the level of Central Administration and Local Administration.

Regarding the payment of this tax, the collection has already started this month. Regarding the payment of this tax, the collection has already started this month. Despite the complex period we are currently experiencing and since IMI already has a flexible payment plan (possibility to pay in instalments), the payment dates have not changed. However, many municipalities have reduced the IMI rate, lowering the tax owed. Check the information, dates and payment amounts in your personal area in the Finance Portal! You can consult, request exemption, and even pay online.

Do not leave payments outstanding, avoid delays and interest that can make this tax heavier in the future!