In 2025, the Tax Authority will apply the legal rules for exemption from Municipal Property Tax (IMI), with the new limits calculated based on IAS 2025. The right to exemption depends on specific criteria of income and asset value, in accordance with the IMI Code (art. 11.º-A) and the Tax Benefits Statute (art. 46.º).
Who can benefit from the exemption
Regime 1: low income (art. 11-A of CIMI): applies to properties intended for the household’s own permanent housing (HPP). In 2025, the household’s annual gross income cannot exceed €16,824.50 and the global VPT of all the household’s properties cannot exceed €73,150. These two criteria are cumulative. The exemption is officially recognized by the AT and is reassessed annually, in accordance with .
Regime 2: acquisition/construction/expansion/improvements (art. 46 of the EBF): grants a temporary 3-year exemption for HPP when the VPT of the property does not exceed €125,000 and the household’s annual gross income is ≤ €153,300. It can be extended for another 2 years upon resolution of the municipal assembly communicated to the AT by December 31st to come into effect the following year.
Legal basis of the measure
The exemption for low incomes is provided for in art. 11.º-A of CIMI. The temporary exemption for acquisition/construction is set out in art. 46th of the EBF. In both cases, the property must be allocated to HPP.
How the 2025 update works
The limits of the low income regime are updated with the IAS. In 2025, the IAS is €522.50, so the income ceiling is €16,824.50 and the global VPT €73,150.
How to request an exemption
For low income (11th-A): there is no need to ask, the AT recognizes it ex officio if the requirements are met, based on the IRS/IMI declarations and tax residence.
Due to acquisition/construction (46th EBF): exemption is automatic for acquisitions. In other cases (construction, expansion, improvements) it is upon request from the finance service/Finance Portal. The request must be submitted within 60 days after the 6-month period to allocate the property to HPP; if it is after the deadline, the exemption begins in the year of the request and ends in the year in which it would have ended if the deadlines had been met.
Cases in which the exemption may be lost
If the property ceases to be an HPP, if the income or global VPT exceeds the limits (11.º-A), or if the assumptions of art. 46th, the exemption ceases.
Surveillance and automation
In the low income regime (11th-A), AT automatically recognizes exemptions annually (non-residents excluded).
What if the exemption is refused?
The taxpayer may submit a complaint (objectionary means provided for in article 68 of the CPPT) within the legal deadlines, in person or through the Finance Portal.
The importance of housing in the lives of retirees
For many pensioners, the house is the main asset, the IMI exemption has social relevance by alleviating fixed costs in a context of stable income.
Rules vary between municipalities
The law is national, however, there are municipal differences in IMI rates, in Family IMI (deduction for dependents) and in the possible extension for 2 years of the exemption in art. 46th, which depends on deliberation by the municipal assembly (communication to AT by December 31st). If in doubt, you should confirm it on the Finance Portal and with the municipality.
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