Portuguese urban residential properties that are rented out are exempt for 3 years: properties (or portions thereof) that are rebuilt, expanded, improved or purchased for consideration, if it is the first transfer, for the portion intended for residential renting, if rented within 6 months of the purchase or completion of work. The exemption begins when the first rental agreement is signed.
Also in improved or expanded properties: the exemption will only apply to the taxable assessed value of the increase from the improvements or expansions, bearing in mind the property’s total taxable assessed value after these changes.
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 signing of the rental agreement.
This recognition may be done (for the same taxpayer) per each property or independent unit intended for residential rental.