Who is entitled to IPTU exemption and how to apply

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Who is eligible for the IPTU exemption (most common situations)

1. Permanent exemption for low income
Who meets these conditions:

Household with annual gross income up to 2.3 times the annual value of the Social Support Index (IAS). In 2025, this limit is approximately $16,824.50
Global VPT of household properties up to approximately 10 times the annual value of the IAS, or approximately €73,150
The house must be the household's own permanent residence (it must be the household's tax address)

2. Temporary exemption for permanent residence
Purchase or completion of construction of a permanent home, with a tax address, meeting the following conditions:

VPT of the property ≤ R$125,000.
Annual household income ≤ €153,300.
Not have any outstanding debts with the State (Finance or Social Security) at that time.
The temporary exemption lasts 3 years; it can be extended for another 2 years if the municipality adheres to the measure.
Each household can use this temporary exemption a maximum of two times.

3. Other Specific Cases
Old lease agreements ("rend as antigas," pre-1990): There is a legal exemption; to qualify, a form has been made available on the Finance Portal to identify which properties are covered.

Low-income individuals, even without new property acquisitions, if they meet the income and asset value criteria.

How to Request IPTU Exemption (What to Do in Practice)
Automatic vs. Express Request
In many cases, the permanent or temporary exemption is automatically granted by the Finance Department if the data (income, VPT, tax address, etc.) is listed in the records.
However, in other cases, especially for temporary or specific exemptions (such as old leases), it may be necessary to make a formal request (in person or online) through the Finance Portal.

Deadlines
For temporary exemptions for permanent residences, the tax address must be registered within 6 months of purchase or completion of construction.
There is also a 60-day deadline to submit a request for IPTU exemption for independent units or parts, such as storage rooms or garages that are part of the house.

Where and How to Apply
Online: Via the Tax Authority Portal, in the "Exemptions" or "Properties"/IMI section – select the applicable exemption reason.
In Person: at a Tax Authority office, especially in cases where documents or in-person certification are required.

The beneficiaries of this measure are young people up to 35 years old who do not own their own home or who have not owned one in the last three years, as long as they are acquiring their first home for permanent residence.

If, for example, they already own a property or a fraction of it, the exemption is no longer valid. In the case of a couple, if only one of the members meets the requirements, the exemption will be granted only on the part of the property corresponding to the eligible beneficiary.
What about income?

To access the benefit, the buyer must have their own income and declare it on their Income Tax, that is, they cannot be a dependent. However, the exemption is not conditional on the value of this income, as the measure does not consider the buyer's financial capacity.

Instead, the Government set limits based on property value. Therefore, only house purchases up to 316,772 euros are completely exempt from IMT, corresponding to the 4th bracket of this tax. For properties between R$316,772 and R$633,453, the exemption is only valid up to the value of R$316,772, with ITBI being charged on the excess value. For properties above R$633,453, there is no exemption.
How to get the benefit?

At the time of purchase, when filling out the IMT Model 1 declaration, simply mark that you meet the requirements for exemption. If there are two buyers, each must complete their own declaration. The computerized system will automatically process the benefit.

In addition to the ITBI exemption, beneficiaries are also exempt from IOF and registration fees, charges paid at the time of the deed and mortgage, if there is real estate financing.
Conditions and exceptions

The exemption remains as long as the property remains the buyer's permanent home for the next six years. Otherwise, the benefit will be revoked and the tax must be paid to the Tax Authorities.

However, there are exceptions. The exemption is not lost in the following cases:

Sale of property.
Changes in the household, such as the birth of a child or a divorce.
Moving the workplace to a distance greater than 100 kilometers.

In these cases, the owner may stop living in the property, but cannot leave it unoccupied. The house must continue to be used for residential purposes, for example through rental.