IMI exemption: Find out if you are eligible

How does IMI exemption work?

The Municipal Property Tax (IMI) is a tax due by all property owners until December 31 of the previous year before payment.

However, there are two exceptions: there are those who are entitled to temporary or permanent exemption.

Those who own properties can benefit from exemption from the Municipal Property Tax (IMI). This exemption can be permanent or temporary. The exemption depends on the household income and the Tax Valuation (VPT) of the property, explained the Government's site at site.

So, in order to have access to the permanent exemption from IMI, you must meet these requirements:  

• Your household cannot have an annual gross income exceeding 2.3 times the annual value of the Indexante dos Apoios Sociais (IAS). That is, 16,824.50 euros (522.50 euros x 14 months x 2.3) in 2025.

• The house must be your permanent residence and the VPT must be less than or equal to €67,260.20.

This exemption is automatic and is assigned every year by the Tax Office.  

Temporary exemption requires the following conditions:  

• Your new property does not have an VPT greater than 125,000 euros and is your tax residence.

• The annual income of the household does not exceed 153,000 euros.  

"The temporary exemption has a maximum duration of 3 years and cannot be requested by families with debts to the State. Law No. 56/2023, of October 6, 2023, added the possibility of extending the exemption for an additional 2 years, depending on the decision of each Municipal assembly," reads on the Government's website.

In addition, this temporary exemption can only be requested twice in a lifetime by each taxpayer or household. 

Read all about this tax: Here's what you need to know about IMI: Calculations, obligations, and exemptions

Read all about taxes and current tax affairs on the channels of Poupança no Minuto.