What is the IMT exemption on the resale of real estate?

What is the IMT exemption on the resale of real estate?
 
The IMT (Municipal Property Transfer Tax) is the tax paid on the purchase of property in Portugal. Normally, any acquisition implies the payment of IMT, but those who buy with the aim of reselling may be exempt, even if they are a natural person, such as a sole proprietor.
 
✅ What are the requirements to obtain this exemption?
 
To benefit from the exemption, you must meet these criteria:
 
- Purpose of resale: The property must be acquired with the clear intention of being resold.
- Resale term: The resale must happen within 3 years of the acquisition.
- Declaration in the deed: The deed of purchase must include the intention to resell and it is mandatory to inform the Tax Authority.
- Do not use it for own housing: The property cannot be used by the buyer to live or as a company's headquarters.
- For profit only: The exemption only applies if the activity is intended to make a profit from resale.
 
📌 Pay attention to these important details:
- If you do not resell within 3 years, the buyer will have to pay the IMT with compensatory interest.
- The exemption can be applied even without having a company incorporated, sole proprietors can enjoy it.
- It is valid for any type of property, as long as it is clearly framed in the resale activity.
 
💡 Practical example:
Imagine that you buy a property for €150,000 with the aim of reselling it. If you declare this in the deed and resell it within 3 years, you don't pay IMT (which could be around €4,000 to €5,000). Direct savings on investment!
 
 

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