IMI Exemption

What Is It?

IMI Exemption (Isenção de IMI — Imposto Municipal sobre Imóveis) is a tax benefit that allows a property owner to be exempt from paying annual municipal property tax for a defined period (temporary exemption) or indefinitely (permanent exemption), provided specific income and property criteria are met.

Types of Exemption and Requirements

Temporary Exemption (Purchase or Construction)

Duration:
Up to 3 years

Who qualifies:
Owners who purchase or build a property intended as their Primary Residence (Habitação Própria e Permanente — HPP)

Eligibility limits:

• Property Tax Value (VPT — Valor Patrimonial Tributário) below €125,000

• Household annual gross income below €153,300

Important:
This exemption may only be granted twice during a taxpayer’s lifetime, at different moments.

Permanent Exemption (Low-Income Households)

Who qualifies:
Households with limited financial resources.

Eligibility limits:

• Annual gross household income up to €15,450

• Combined VPT of all properties owned by the household not exceeding €67,260

How and Where to Apply?

Automatic Attribution
In most situations — particularly when purchasing an HPP or qualifying under low-income criteria — the Portuguese Tax Authority (Autoridade Tributária e Aduaneira — Finanças) grants the exemption automatically based on existing tax records.

Manual Request
If not granted automatically, the request can be submitted through the Portal das Finanças or at a local tax office.

Deadline:
Within 60 days after purchase or completion of construction works.

What Does It Cost?

€0 — Free
This is a legal tax benefit claimed with the Tax Authority.

What Can Cancel the Exemption?

• Change of Property Use
  If the property stops being your primary residence (for example, if rented out), the exemption ends immediately.

• Outstanding Public Debts
  Unsettled tax or Social Security debts may lead to suspension or denial of the exemption.

Young Buyers (Special Measure 2024–2025)

Buyers aged up to 35 years old purchasing their first home may benefit from more favourable exemption rules at acquisition, often combined with IMT exemption, depending on the property value.