On the 1st of January 2023, following the approval of the State Budget for 2023, a number of relevant modifications to the tax regime applicable to the purchase and resale of immovable property came into force. We highlight the definition of normal and habitual exercise of the activity of purchaser of property for resale, set forth in article 7(3) of the IMT Code (Municipal Property Transfer Tax).
The referred alteration limits the access to the IMT exemption for those who normally and habitually exercise the activity of buying immovable property for resale.
Until now, to benefit from this tax exemption, taxpayers would have to prove that, in the previous year, purchased at least one property with the intention of reselling. From now on, taxpayers will have to prove that they have sold one property they purchased with the intention of reselling, in each of the two previous years.
The new regime changes two essential requirements to access the tax benefit: on the one hand, the taxpayer must have sold property which had previously been purchased for resale and it is not sufficient to have purchased it for resale; on the other hand, this fact must have occurred in each of the two previous years and not only in the previous year.
António Maria Pimenta | Maria Cabral
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