IMT, Property Transfer Tax 2011 Portugal
Table 1
Primary fiscal residence
(not aplicable for investment or holiday home purchases !!!)
Value of Property, EUR | Tax rate % | Deduction (relief), EUR |
Up to 92'407 From 92'407 to 126'403 From 126'403 to 172'348 From 172'348 to 287'213 From 287'213 to 574'323 | 0 2 5 7 8 | 0 1'848.14 5'640.23 9'087.19 11'959.32 |
Above 574'323 | 6 | n/a |
Table 2
Residential property
(including second or/and holiday home, non-resident purchases)
Value of Property, EUR | Tax rate % | Deduction |
Up to 92'407 From 92'407 to 126'403 From 126'403 to 172'348 From 172'348 to 287'213 From 287'213 to 550'836 | 1 2 5 7 8 | 0 924.07 4'716.16 8'163.12 11'035.25 |
Above 550'836 | 6 | n/a |
Attention
All land, commercial property and non-residential property (including part or whole swimming pool in your house or condominium) is taxed at 6%.
How to work out your IMT tax using the above tables
Most holiday home buyers would need to use Table 2 to work out IMT Property Transfer tax in Portugal. Looking at corresponding table above see what tax rate is applicable to you depending on your property price and what tax relief you will be allowed.
Example:
Say, if you want to buy a property in Portugal for 140'000 EUR for holiday or investment purposes (or in case you're not resident of Portugal) then looking at Table 2 your tax rate would be 5%.
So, the tax payable is 140'000*5%=7'000 EUR. From this amount you should deduct a figure in Deduction column. This is your tax relief. So the amount you pay to Portuguese Tax Authorities will be 7'000 - 4'614.64 = 2'385.36 EUR in this case.
Do not forget
Any part of the property Deed that is not for residential purposes (swimming pool, land etc.) is taxed at a flat rate of 6% |
Tax optimization
To avoid paying IMP Property Tax in the future when you decide to sell your property, you may want to have your propety purchased initially on the name of the company offshore, say in Seychelles or British Virgin Islands. Later, when you decide to sell your holiday house or apartment you will just sell shares of your company that you have property on (do a simple "share transfer"). Because you will not actually change the owner of the property, there will be no IMT tax applicable. To learn more about Tax Optimizationa and registering of UK and Offshore companies, please, use the link below: |