In Portugal there are exemptions for properties classified as national monuments or of public interest, municipal value or cultural heritage. This exemption is automatic with notification of the classification as a national monument, or the individual classification as property of public or municipal interest, to be made by the Archaeological and Architectural Heritage Management Institute (Instituto de Gestão do Património Arquitetónico e Arqueológico, I. P.), or by the municipalities; it shall remain effective so long as the properties are classified as such, even after their transfer.
The exemption ceases in the year that the properties are declassified.
There are also exemptions for urban properties subject to urban renewal, for a period of 2 years from that of issue of the respective city permit.
Urban renewal:
— process of transforming urban land (works involving construction, reconstruction, modification, expansion, demolition and conservation of buildings) to improve usability, while preserving its essential character;
—combination of urban planning, land parcelling and urban works aimed at recovering historical zones and critical urban reconversion and recovery areas, certified by the National Urban Renewal and Housing Institute (IHRU) or by the municipality.
This exemption depends on the municipality’s recognition of the properties’ status after the works are complete and certification is issued.
The exemption cannot be combined with other identical tax benefits, notwithstanding, however, the ability to choose another more favourable benefit.
Urban properties to be rehabilitated may also be exempt from IMI for 5 years from their completion.
There is exemption for properties belonging to tourism developments, for a period of 7 years from the date of their classification as having tourism utility.
This includes properties previously classified as such, provided that they have met the deadline established for their opening or reopening to the public, or for the completion of works.
Exemption is recognized by the property’s local Tax Office Head, in a documented request, to be submitted by the taxpayer within 60 days of the publication of the order of designation of tourism utility.
If the request is submitted after this time, the exemption shall begin in the year immediately following that of submission, but ending in the same year (as if the deadline in question had been met).
Properties belonging to real estate investment funds, pensions or retirement savings are also exempt, in the case of open-end or closed-end properties for public subscription, in pension funds or retirement savings, established and operating in accordance with national legislation.
Underground parking lots have exemption for 25 years, when declared as having municipal utility by decision of the local municipality.
Exemption is recognized by the property’s local Tax Office Head, in a duly justified and documented request with a declaration of municipal utility, to be submitted by taxpayers within 90 days of the completion of work.
If the exemption request is submitted after this time, the exemption shall begin in the year immediately following that of submission, but ending in the same year (as if the deadline in question had been met).
