The Municipal Tax on Term on Real Estate Transmissions (IMT) is one of the most relevant expenses associated with home purchase in Portugal. However, there are situations provided for in the law where this tax can be totally or partially dismissed. From the purchase for its own housing to the acquisition for resale, there are several possible exceptions.
According to the website, IMT exemption cases cover different situations, which depend on the type of property, their value, the purpose of the purchase and even the age of the buyer.
Permanent own housing with value up to 92 thousand euros
According to the same source, taxpayers who acquire their own permanent housing may benefit from exemption from IMT if the value of the house does not exceed 92,407 euros in the continental territory or the 115,508 euros in the autonomous regions.
In these cases, the exemption applies automatically, provided that the property is effectively intended for the usual residence of the buyer and that the amount declared in the deed or the tax asset value does not exceed the legal limits.
First house for young people up to 35 years
They are also exempt from IMT, as well as the seal tax, the permanent first housing purchases made by people aged 35 or less. This measure comes into force from August 1, 2024 and is valid only if the buyer has no other home, even partial.
Explains the government’s website that, in order to access this exemption, the property must be purchased to the limit of 316,772 euros. If the purchase value is between 316,772 and 633,453 euros, the exemption applies only to the first limit. Above this amount, there is no way for any exemption.
In the case of two buyers together, if one is over 35 years old or already has another housing, the exemption will only be 50%.
Exemption for housing lease
The tax benefit also extends to the purchase of properties intended for lease for permanent housing. This exemption applies when the property is acquired by entities such as the State, authorities, autonomous regions or public bodies without business activity.
According to the same source, the objective is to stimulate the public or social supply of housing, allowing these entities to acquire real estate without the charge of the tax.
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Urban rehabilitation with deadlines to comply with
IMT exemption can also be granted to those who buy a property with the purpose of rehabilitating it. To this end, the works must start within six months after the deed. In addition, it is necessary that the intervention complies with the criteria defined in the Statute of Tax Benefits, namely Article 45.
This regime aims to support the recovery of the building in urban areas or in properties over 30 years old, encouraging the renewal of housing heritage.
Purchase for resale within three years
Taxpayers who buy properties to resale can benefit from exemption from IMT, provided that the sale occurs up to three years after the acquisition. Exemption may be requested in advance at the time of deed, or requested as a refund after resale.
It refers to the same source that, to ensure the benefit, the buyer must comply with all legal requirements and maintain the resale operation within the established deadline. Otherwise, the exemption may expire.
Properties in forest zones and protected heritage
IMT can also be dismissed in the acquisition of properties located in forest intervention zones. This measure aims to promote sustainable management of these areas and is applicable to rustic or mixed buildings located in areas classified for this purpose.
Additionally, properties classified as public interest or national interest may be exempt from tax, both in purchases made by public and private entities.
Credit institutions in judicial proceedings
IMT exemption can also be granted when the purchase of the property is made by a financial institution in the context of execution, insolvency or bankruptcy processes. The regime provides for this exception to allow the regularization and management of assets recovered in court.
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