TAX INFO

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This is a number given by the Tax Authorities that will be requested for you:

  • Buy a property
  • Buy a car
  • Rent a property for long term
  • Open a bank account
  • Arrange for a mortgage

IMI is the name for the annual property tax in Portugal and is payable by the person or company that owns the property on the last day of each fiscal year (31st of December).

IMI rates are decided by each council but minimum and maximum percentages are stipulated by the national government each year.

National rates range between:

  • 0,4% and 0,7% for property considered "Urbano" evaluated prior to 2003;
  • 0,2% and 0,4% for property considered "Urbano" evaluated after 2003;
  • 0,8% for property that is considered "Rústico".(these rates can vary significantly if the person or company is from a black-listed jurisdiction)

The amount of IMI tax due each year is calculated by multiplying the applicable rate with the assessed taxable Property Value (VPT).

IMI is usually is paid in several equal installments during the fiscal year depending on the annual amount.

Permanent residents may be entitled to an IMI exemption for a specified number of years, depending on the Taxable Property Value.

 

IMI is the name for the annual property tax in Portugal and is payable by the person or company that owns the property on the last day of each fiscal year (31st of December).

IMI rates are decided by each council but minimum and maximum percentages are stipulated by the national government each year.

National rates range between:

  • 0,4% and 0,7% for property considered "Urbano" evaluated prior to 2003;
  • 0,2% and 0,4% for property considered "Urbano" evaluated after 2003;
  • 0,8% for property that is considered "Rústico".(these rates can vary significantly if the person or company is from a black-listed jurisdiction)

The amount of IMI tax due each year is calculated by multiplying the applicable rate with the assessed taxable Property Value (VPT).

IMI is usually is paid in several equal installments during the fiscal year depending on the annual amount.

Permanent residents may be entitled to an IMI exemption for a specified number of years, depending on the Taxable Property Value.

 

IMI - The Portuguese Council Tax

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Remember to keep your wording friendly, approachable and easy to understand… you are writing this for lots of different types of people to read and you want to appeal to them all.

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What is the Fiscal Number for?

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Any income generated from the property through lettings or sub-lettings is considered rental income.

Whether as IRS (as an individual) or IRC (as a company), rental income is taxed at a flat rate of 15% for non-residents with certain deductions allowed (2).

(2) other rates may apply to certain non-resident companies.

The rental income tax calculation for non-residents is as follows:

Gross Annual Rental Income - Specific deductions (expenses)  

= Taxable Rental Income x 15%  

= Annual Income Tax - Withholding Tax (if applicable)

= Tax to be paid or refunded

RENTAL INCOME

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CAPITAL GAINS

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All transmissions of property in Portugal must be reported to the tax office regardless of whether the transmission is exempt from tax or not.

The capital gain resulting from the sale of a property is subject to a flat rate of 25% for non-residents in Portugal.

The capital gain tax calculation for non-residents is as follows:

Selling Price - Purchase Price x Coefficient for Monetary Devaluation -

- Expenses with Purchase (lawyer, taxes, fees, etc...) - Expenses with Sale (lawyer, taxes, fees, etc...) -  Expenses with Improvements (in last 5 years)

= Capital Gain x 25%

= Tax to be Paid

STAMP DUTY

  • 0,8% over Purchase Price

and

  • 0,6% over Mortgage Amount if applicable;

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IMT - Ownership Transfer Tax

The rates are variable depending on:

  • Type of property: "Urbano" or "Rustic";
  • Nature: Permanent Residency address or Holiday Home
  • Value: Purchase Price or assessed Taxable Property Value (Valor Patrimonial) which is highest.

 

RATES:

  • Land considered "Rustico" pay 5%;
  • Land considered "Urbano" pay 6,5%;
  • Villas or Apartments pay a variable rate which is explained  here

The rates are variable depending on:

  • Type of property: "Urbano" or "Rustic";
  • Nature: Permanent Residency address or Holiday Home
  • Value: Purchase Price or assessed Taxable Property Value (Valor Patrimonial) which is highest.

 

RATES:

  • Land considered "Rustico" pay 5%;
  • Land considered "Urbano" pay 6,5%;
  • Villas or Apartments pay a variable rate which is explained  here

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Q

Add your question here?

Remember to keep your wording friendly, approachable and easy to understand… you are writing this for lots of different types of people to read and you want to appeal to them all.

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