57
57

Municipalities Can Grant IMI Tax Benefits for Leased Buildings

8 November 2017

The benefit must be approved in the Municipal Assembly by the end of the year.

Municipalities are free to set their Municipal Property Tax (IMI) rate within a range of 0.3% to 0.45% and may also grant discounts up to a limit of 20% for urban buildings placed in the housing rental market. This benefit may be limited to certain zones or parishes and must be approved by the Municipal Assembly by the end of the year.

Unlike the IMI discount for households with children, which is another benefit controlled by the municipalities, which when approved is automatically applied by the Finance Ministry, the discount for leased buildings will have to be requested by the owners from the local authorities.

The deadline for municipalities to communicate any information to the Finance Ministry regarding the IMI rate and the approved rebates was extended until December 31 (from November 30).

Proof that the property is allocated to rental housing can be provided using a copy of the model 2 (Stamp Tax – communication of lease contracts) downloaded from the Tax and Customs Authority portal, or a copy of the lease, registered in the local Tax District and in force in the year of the intended benefit. A copy of the last rent receipt is also required.

Any discount, relative to 2017, will be applied to the IMI payable in 2018.

The proposed 2018 State Budget will include tax changes for leased and rehabilitated buildings, which are still under negotiation, but which do not overlap discounts for leased buildings outlined in the Municipal Property Tax Code. But even if it were to overlap, the State Budget will come into force in 2018, applying to IMI payments in 2019.

Original Story: Público – Rosa Soares

Photo: Paulo Pimenta

Translation: Richard Turner