Municipal property tax in Portugal for the year 2018
IMI exemption for buildings or parts of buildings attached to stores with history
Buildings or parts of buildings belonging to stores with a history, recognized by the municipality as establishments of historical, cultural or social interest, and which integrate the national inventory of establishments and entities of historical, cultural and social interest, are now exempt from IMI.
This automatic exemption begins in the year in which recognition by the municipality and the integration in the national inventory of the establishments and entities of historical and cultural or social interest of the locality are verified, ceasing in case of declassification of the buildings or when these are considered vacant in accordance with the IMI Code.
In addition, charges for maintenance and maintenance of these buildings are deductible for IRC or IRS collection in 110% of the respective amount when they are borne by IRC or IRS taxpayers in the scope of business or professional activity not covered by the scheme simplified method of determining the taxable income.
Rehabilitation urban buildings
Urban buildings or fractions completed more than 30 years ago or located in areas of urban rehabilitation that are cumulatively subject to interventions under the Urban Rehabilitation Law and, as a consequence, their conservation status is two levels above the above and has at least a good level, and if the energy efficiency and thermal quality requirements are met, the following tax benefits apply:
Exemption from IMI for a period of three years, and may be renewed for another 5 years in the case of real estate related to the rental for permanent housing;
Exemption of IMT in the acquisition of real estate for rehabilitation interventions, provided that the works start within 3 years;
IMT exemption in the first transmission, subsequent to the rehabilitation intervention, of immovable property to affect the rent for permanent housing or, if located in an urban rehabilitation area, also own and permanent housing;
Taxation at an autonomous rate of 5% of the capital gains earned by taxpayers resident in Portugal, arising from the first sale of property located in an urban rehabilitation area;
Reduction of fees due for the evaluation of the state of conservation of real estate.
The tax benefits under IMI and IMT do not prejudice the settlement and collection of the corresponding taxes, and the settlements are canceled and returned within a maximum period of 15 days after the notification to the Tax and Customs Authority of the recognition of the rehabilitation intervention by the city council .
IMI exemption from low-value buildings of low-income taxable persons
The IMI exemption applicable to low-value buildings of low-income taxpayers is extended to properties owned by housing and construction cooperatives or residents’ associations when they are assigned to their members on a horizontal ownership basis, provided that they affect housing own and permanent.
This exemption depends on a request to be submitted to the Tax and Customs Authority by the owner entities in January of each year, and must identify the cooperators or associates to whom the buildings were assigned on December 31 of the previous year.
Additional to IMI
Housing and construction cooperatives, even if they exclusively own, usufruct or surface of buildings for the construction of social housing or at controlled costs, become subject to Additional Tax to IMI.
Taxable amount of the Additional to IMI
Buildings that are exclusively for the construction of social housing or controlled costs whose owners are housing and construction cooperatives or residents’ associations, as well as the buildings owned by these entities whose tax value of each building or part of a building does not exceed 20 times the value of the IAS will be excluded from the base of the incidence of the Additional to IMI.
Real Estate Matrix Information
The information on buildings registered in the building matrix on behalf of taxable persons. will be made available on the Finance Portal. If there are inaccuracies in the matrix relating to the ownership of buildings of taxable persons married in a regime of communion of assets, it is up to them to identify the common buildings until February 15.
The updating of the matrix of the buildings will be carried out by the Tax Authority with effect from January 1 of this year.