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Landlords have until 31 December to request reduction of IMI

12 December 2017

Property owners who place their houses or flats on the rental market have until the end of the month to apply for a reduction in their Municipal Property Tax (IMI). In the case of Lisbon, the discount can reach 20%. The tax benefit is provided for by law but is not automatic. Owners must submit a request to the relevant municipality. Owners in Lisbon have until 31 December to do so.

According to the Jornal de Negócios, Lisbon will not be the only municipality that will concede a discount on IMI tax bills, and the decision to grant the tax benefit is in the hands of the municipalities themselves. They must then notify the Finance Ministry of their choice, after which the Treasury will proceed with the correct tax charges.

This year, however, the deadline for municipalities to communicate their option to the Finance Ministry has been extended from November 30 to December 31. The town councils must inform the Treasury regarding the IMI rate they wish to charge in 2018, but relating to 2017, the newspaper reported.

Landlords who have houses on the rental market must inform their local town councils of the allocation. Property owners who do not do so will not receive any benefits.

What is the procedure in Lisbon?

In addition to completing a form that is available on the Lisbon City Hall’s website, landlords must provide certain documents, such as a copy of the certificate issued by the Land Registry Office (issued less than a year before), a copy of the land register and copies of the rental contract and the last receipt for rents, together with a copy of the registration of the rental with the Finance Ministry.

To benefit from a discount on IMI, the rental agreements must be registered with the Finance Ministry, and it should be noted that the lease is exclusively for housing purposes.

In case the property has more than one owner, only one must make the request, since the tax benefit is attributed to the fraction.

Original Story: Idealista

Translation: Richard Turner