The Portuguese Tax Authority (AT) will refund IMI property tax wrongly charged in 2025 to landlords with residential tenancy agreements signed before 1990.
Source: Adobe Stock
Author: Redaction
Tax Authority acknowledges errors in IMI collection
The Portuguese Tax Authority (AT) will refund IMI property tax wrongly charged in 2025 to owners with residential tenancy agreements signed before 1990. The decision follows the identification of errors in the application of the tax exemption established by law for these types of contracts.
Landlords who have already paid the full amount of the tax will receive a refund. Where payment is being made in instalments, the correction will be reflected in the following tax assessments, automatically adjusting the outstanding amounts.
Exemption remains valid without a new application
The IMI exemption for tenancy agreements signed before the New Urban Lease Regime (NRAU) came into force on 1 January 2024 and applies as long as the legal conditions continue to be met. Even so, several property owners received 2025 IMI tax assessments this year despite having already been granted the exemption the previous year.
The situation led to complaints from landlords. In some cases, the tax assessments were corrected, while in others a new exemption application was requested, although the legislation does not require annual renewal of this tax benefit.
Refunds will reach property owners
Due to the lack of clarification, many property owners chose to pay the tax within the legal deadline to avoid penalties. The Tax Authority now clarifies that anyone who applied for the exemption in 2024 does not need to submit a new application in subsequent years.
The authority confirms that the tax benefit remains valid throughout the duration of the eligible contracts, provided the legal requirements continue to be met. As a result, the amounts wrongly charged in 2025 will be refunded or offset against future tax assessments, depending on each taxpayer's situation.
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