In the area of taxation, keep in mind the relevant information about property taxes

In the area of taxation, keep in mind the relevant information about property taxes

First of all, you should know that, in Portugal, the concept of property covers "full ownership", which is based on the full and exclusive right of use, enjoyment and disposal of the property. This right gives an important competitive advantage to the Portuguese real estate system.


In the area of taxation, keep in mind the relevant information on the taxes, fees and tax benefits applicable to the estate.
The Municipal Property Transfer Tax and the Stamp Duty are subject to the acquisition of real estate.

 

What is the Municipal Tax on Onerous Transfers of Real Estate?


It is a tax that is levied on the transfers, for consideration, of the right of ownership over immovable property or partial figures of this right (use and habitation, surface right, usufruct, among others).
What does this tax apply to?
It is levied on the value of the purchase and sale contract or on the taxable patrimonial value of the properties, whichever is greater.

The tax results from the application of variable rates which, in the case of properties intended exclusively for housing, can vary between 0 and 6%. If located in the Autonomous Regions of the Azores and Madeira, they benefit from a reduction in fees.


What is Stamp Duty?


It is a tax that applies to all acts, contracts, documents, titles, papers and other facts or legal situations, including the free transfer of goods. In the case of real estate acquisitions, it is levied on the value of the purchase and sale contract or on the taxable patrimonial value of the properties, whichever is greater, and results from the application of the rate of 0.8%.


What is the Taxable Asset Value?


It is the value recorded in the land registry on the date of settlement. This matrix contains the characterization of the property, the location, its taxable patrimonial value and the identity of the owners. The matrices are updated annually with reference to December 31st.


Who is responsible for the assessment of taxes?


To the interested party who buys the property.
When should these taxes be paid?
They must be paid before the execution of the deed of purchase and sale of the property. If the transfer takes place abroad, the tax must be paid during the following month.


How should you proceed to settle taxes?


You should go to any Tax Office, through the Finance Portal or at a Casa Pronta Branch.


THE INFORMATION PROVIDED DOES NOT EXEMPT YOU FROM CONSULTING THE APPLICABLE LEGISLATION

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