The distinction
There are two exemptions, not one
| Rule | Temporary | Permanent |
|---|---|---|
| Legal basis | TemporaryArticle 46 EBF | PermanentArticle 11.º-A CIMI |
| Duration | Temporary3 years, extendable by 2 | PermanentNo time limit |
| VPT ceiling | Temporary€125,000 | Permanent10 × 14 × IAS = €75,198.20 |
| Income ceiling | Temporary€153,300 (household gross) | Permanent2.3 × 14 × IAS = €17,295.59 |
| How you get it | TemporaryAutomatic on purchase; on application otherwise | PermanentAutomatic, granted by AT of its own motion |
| How many times | TemporaryTwice per taxpayer or household | PermanentAnnually, while conditions hold |
The first is for people buying or building. The second is for low-income households, regardless of when they bought.
Article 46 EBF
The temporary exemption
Article 46 n.º 1 requires, cumulatively:
- The property is the permanent own home of the taxpayer or their household.
- Household gross income in the previous year not above €153,300.
- The property is actually used for that purpose within six months of acquisition or completion.
- VPT not above €125,000 (n.º 5).
For this purpose, the property counts as a permanent own home if the taxpayer's fiscal domicile is registered there (n.º 9).
Duration: three years, extendable by two
N.º 5 sets the period at three years. The two-year extension depends on a deliberation of the municipal assembly, which must be communicated to the tax authority electronically, by 31 December, to take effect the following year.
It is each municipality's decision, and it is annual. Not every concelho adopts it. RealOS does not publish which câmaras have extended it — check with yours.
It is automatic — but only on purchase
N.º 6 distinguishes: a) automatic on onerous acquisition, based on what AT already holds; b) on application in all other cases — construction, extension, improvement — by documented request to the head of the local tax office.
Buyers need do nothing. People building or extending must apply.
The deadline almost nobody explains
If the property becomes the permanent home after the six-month period, or the application is filed late, n.º 7 provides that the exemption starts in the year of occupation or application — but ends in the year it would have ended had the deadlines been met.
Being late does not push back the end date. It shortens the exemption. A year late is a year lost.
Article 46 n.º 11
Twice in a lifetime
The exemption may only be granted twice to the same taxpayer or household. Not per property. Per person or household. Anyone who has used it twice cannot claim it again.
What else is covered
- Storage rooms, pantries and garages, even physically separate, provided they are part of the same building or housing complex and used as an adjunct to the exempt home (n.º 2).
- Emigrants can benefit, exempt from the occupation deadline (n.º 13).
- Letting: it also applies to the part let as a tenant's permanent home, counted from the first lease (n.º 3).
Excluded: property acquired by entities domiciled in jurisdictions with a clearly more favourable tax regime (n.º 10).
Article 11.º-A CIMI
The permanent exemption
This one has no time limit. It applies while the conditions hold, and AT grants it of its own motion, annually (n.º 4).
Article 11.º-A n.º 1 requires, cumulatively, household gross income not above 2.3 × 14 × IAS and combined VPT of all rural and urban property owned by the household not above 10 × 14 × IAS. The IAS for 2026 is €537.13 (Portaria n.º 480-A/2025/1, Article 2).
| Ceiling | Formula | 2026 value |
|---|---|---|
| Household income | Formula2.3 × 14 × IAS | 2026 value€17,295.59 |
| Household total VPT | Formula10 × 14 × IAS | 2026 value€75,198.20 |
Because the IAS is updated annually by portaria, these figures change every year. The income counted is that of the year before the one the exemption relates to (n.º 2).
- It does not apply to non-residents. N.º 4 expressly excludes property belonging to non-resident taxpayers.
- Missing filing obligations forfeits it. N.º 5 provides that failure to meet IRS and IMI filing obligations means the exemption is not granted.
- Care homes and family homes. Anyone who on 31 December is living in a care home, a health institution or the home of relatives up to the fourth degree can keep the exemption, on proof filed with AT by that date (n.º 9).
- Co-ownership and undivided estates have their own rules (n.ºs 7, 10 and 11).
In practice
What it is worth
IMI is a municipal tax. The published urban rate across 305 concelhos with data runs from 0.30% (Águeda) to 0.45% (Alandroal). On a property at the temporary exemption's VPT ceiling (€125,000):
| Municipal rate | Annual IMI | 3 years | 5 years (with extension) |
|---|---|---|---|
| 0.30%Águeda | Annual IMI€375.00 | 3 years€1,125.00 | 5 years (with extension)€1,875.00 |
| 0.45%Alandroal | Annual IMI€562.50 | 3 years€1,687.50 | 5 years (with extension)€2,812.50 |
Urban rates from homeos.imi_rates, 305 concelhos, year 2025. The five-year column assumes the municipal +2-year extension — an annual assembly deliberation, not an automatic right.
Compare your concelho's rateBefore you count on it
What to check
1
Register your fiscal domicile at the property within six months. That is what the law treats as occupying it as a permanent home.
2
If you bought, you do not need to apply. Check on the Portal das Finanças that it was applied.
3
If you built or extended, you must apply — within 60 days of the six-month period.
4
Check whether your municipality extended it to five years. It is an annual municipal assembly deliberation; not all do it.
5
Check how many times you have already used it. The limit is two.
Questions
Frequently asked questions
- How long does the first-home IMI exemption last?
- Three years under Article 46 n.º 5 EBF, extendable by two more where the municipal assembly has so deliberated and notified AT by 31 December.
- What is the VPT ceiling?
- €125,000 for the temporary Article 46 exemption. The permanent Article 11.º-A exemption has a different ceiling, calculated from the IAS — €75,198.20 for 2026.
- Do I have to apply for it?
- On an onerous acquisition it is automatic (Article 46 n.º 6 a)). For construction, extension or improvement you must apply.
- Can I have the exemption more than once?
- Yes, but only twice per taxpayer or household (Article 46 n.º 11).
- What happens if I apply late?
- The exemption starts in the year of the application but ends when it would have ended had the deadlines been met. The delay is lost time.
- I am a non-resident. Do I qualify?
- Not for the permanent Article 11.º-A exemption — n.º 4 expressly excludes non-residents. The temporary Article 46 exemption depends on the property being a permanent own home, which presupposes fiscal domicile in Portugal.
- Is the garage exempt too?
- Yes. Article 46 n.º 2 covers storage rooms, pantries and garages, even physically separate, provided they form part of the same building or housing complex.
Next
Compare the rate and work out the purchase
The IMI rate is set by each câmara. IMT at the deed is a separate calculation.
Sources: Article 46 of the Estatuto dos Benefícios Fiscais and Article 11.º-A of the Código do IMI, consolidated text in force. IAS value set by Portaria n.º 480-A/2025/1 of 30 December, Article 2. Municipal rates from municipal assembly deliberations (homeos.imi_rates). This guide is informational and does not constitute tax advice.
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