Parliament approves end of LMI exemption for real estate funds



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Real estate investment funds will no longer be able to benefit (or claim) from an exemption from the payment of the municipal real estate transaction tax (IMT) upon the purchase of real estate, after this Tuesday, the favorable votes of the PS, BE and PCP made possible the proposal for PCP (the BE had one with the same objective) which required the deletion of articles of diplomas allowing the IFI to continue to have access to this benefit.

The state budget for 2016 had already approved the end of this tax benefit for the FII through a tax status amendment, but the funds were finally able to avoid to pay the IMT because of what was available about it by decree law of 1987.

By using this decree-law, the FII finally asked the court to return the LMI it had paid for the acquisition of the property. According to the survey conducted by the PCP, this legal breakout allowed the funds to recover three million euros. There is still business worth twenty million euros pending a court order.

The CDS / PP chose to vote against while the PSD abstained.


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