A ruling of the Supreme Administrative Court was published on April 3 2019, in which it was decided that, regarding the taxation under the Municipal Property Tax (IMT), each wind turbine forming part of a wind farm cannot be classified as a building.

The content of the judgment states that in order to a building be considered to exist for IMT taxation purposes, three elements – physical, legal and economic – shall simultaneously be met. Therefore, the Court considered that a wind turbine generator which does not have an economic autonomy in relation to the wind farm (not only because its normal destination is not different from the whole wind farm, but also because it is not possible to evaluate them separately), cannot be classified as a building for IMI purposes. As a result of that, the acts of officious registration by the Tax Services of the wind turbines as buildings were annulled in the present case.

Click on the link below to see the ruling:

http://www.dgsi.pt/jsta.nsf/35fbbbf22e1bb1e680256f8e003ea931/eb766c536834930d802583d700571f09?OpenDocument&ExpandSection=1#_Section1

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[Photo: Rawfilm, available at: unsplash.com]

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