Who is entitled to IMI exemption?

There are two types of exemption: permanent and temporary. In both cases, the exemption depends on the household's income and the property's asset value.

IMI is levied annually and is calculated on the basis of the property's asset value as well as its location - within minimum and maximum limits, it is the City Council that sets the IMI rate to be applied.  

However, there are situations that exempt taxpayers from paying IMI. There are two types of exemption: permanent and temporary. In both cases, the exemption depends on the property's taxable value (VPT). 


Permanent exemption 

Permanent exemption from paying IMI is granted to low-income households. To benefit from this exemption, the total gross income of the household must be less than 2.3 times the annual value of the Social Support Index (IAS), i.e. the gross income of the household must not exceed 15,295 euros.

In addition, it is also a requirement that the VPT of the property does not exceed 10 times the annual value of the IAS, so the VPT of the property must not exceed 66,500 euros.  

In other words, households with a gross income of no more than 15,295 euros in the previous year and a property value of less than 66,500 euros are permanently exempt.


Temporary exemption

The temporary exemption is granted for three years to families who purchase a property for their own permanent home. However, in order to benefit from this exemption, the property's asset value must not exceed 125,000 euros.

According to the legislation, the temporary exemption from IMI is also granted to owners of properties that have been “built, extended, improved or acquired for a consideration, for their own permanent residence”. In this case too, the VPT of the property cannot exceed 125 thousand euros.


How do I apply for IMI exemption?

The IMI exemption is granted automatically as the Tax and Customs Authority bases its decision on the annual income declaration.


Source: Doutor Finanças