5
May
2023

IMT and IMI: New rules that cannot be ignored

5
May
2023

The State Budget for 2023 (Law n.º 24-D/2022) brought significant changes to the Portuguese tax framework, with special incidence on the regime of purchase of real estate for resale.

Learn more about the impact of the changes to the Municipal Property Tansfer Tax (IMT) and the Municipal Property Tax (IMI)

IMT

Taxpayers engaged in the purchase of resale of real estate will be subject to new rules, in order to be recognized as exempt from IMT.

The IMT exemption within the scope of the resale of real estate will only operate in relation to taxable persons who normally and usually exercise the activity, a new concept having been introduced for this purpose.

Thus, according to the new wording of article 7 of the CIMT it will only be possible to prove this requirement by means of a certificate, issued by the tax office, which states that, in each of the two previous years, properties previously acquired for this purpose were resold.

Additionally, the exemption on the purchase for resale expires if the acquired buildings are not resold within one year, whereas previously it only expired withing three years.

 

IMI

Regarding the IMI, this tax will no longer be due from the third year following that in which the building has been included in the inventory of a company whose purpose is to sell it, and from now on it will be taxed immediately at the beginning.

Nevertheless, the new Law provides for an IMI exemption applicable to land for residential construction while the licensing and authorization procedures for residential use are pending at the Municipal Councils.

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