As a general rule, all property owners are liable to pay IMI, however, there are some exceptions where exemption from this tax is provided for, namely:
- Temporary exemption for buildings used as permanent residences;
- Exemption for low-income taxpayers;
- Other exemption situations.
Temporary exemption for permanent dwellings
Property owners who meet the following conditions are entitled to a 3-year exemption:
- The property is intended as the taxpayer's own permanent home or that of their household. In other words, it corresponds to their fiscal domicile, within 6 months of acquiring it;
- The property's Taxable Asset Value (VPT) is less than or equal to 125,000 euros;
- The owner's annual Taxable Income cannot exceed 153,300 euros.
How do I request exemption from IMI for my first home?
As a general rule, the Tax Authority automatically applies for exemption from IMI.
However, it can be requested electronically, on the AT portal, or at the relevant Tax Office. The property must be used as a permanent home within 6 months of its acquisition. The request for exemption from IMI must be made within 60 days of these 6 months.
Since IMI is a municipal tax, this exemption can be extended for a further two years by decision of the Municipal Assembly.
- Exemption for low-income taxpayers
- Taxpayers with low incomes and low value assets may also be exempt from paying IMI.
To do so, they must meet the following conditions:
- The property corresponds to the tax residence of the owner or household;
- The household's gross annual income cannot exceed 2.3 times the value of 14 installments of the Social Support Index. In other words, the income must be less than €16,824.50;
- The Tax Asset Value of the house must not exceed €73,150.
How do I request exemption from IMI for low-income taxpayers?
This exemption is automatic, there is no need to apply to the Tax Authority. If you receive the Notice of Assessment, you must submit a Complaint to the Tax Authority.
Does the property have to be the tax address of the taxpayer or their household in order to be exempt?
As a general rule, in order to be exempt, the property must be the tax address of the taxpayer or their household. However, there are exceptions, such as:
- The taxable person lives in a nursing home;
- The taxable person lives in a health institution;
- The taxable person is living with relatives.
The taxable person must prove that the property was their tax home until they became dependent on the care of a third party.
Source: https://www.centralgestcloud.com
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