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When buying a property in Portugal you have to pay purchase taxes for
properties over 90,418. These are calculated on a per cent basis, which
are on a sliding scale relating to the value of the property you wish to
purchase. These rates are usually amended each year inline with
inflation and although new rates and a new system was introduced in
April 2010, these proved too complex to calculate. Therefore amended
rates with precise deductions have been now calculated (May 2010).
Resale properties - including ruins, land, old houses - are subject to
Imposto Municipal Sobre as Transmissυes (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.
If the property is your sole residence then the taxes are levied as
follows: |
|
Primary Residence |
| |
under
90,418 |
0% |
| |
90,418 - 123,682 |
2% minus 1,808.36 |
| |
123,682 - 168,638 |
5% minus 5,518.82 |
| |
168,638 -
281,030 |
7% minus 8,891.58 |
| |
281,030 -
561,960 |
8% minus 11,701.88 |
| |
Over 561,960
|
6% |
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If the property you are purchasing is a
second property such as a holiday home then the taxes are calculated as
follows: |
|
Second (Holiday) Home |
| |
under
90,418 |
1% |
| |
90,418 - 123,682 |
2% minus
904.18 |
| |
123,682 - 168,638 |
5% minus 4,614.64 |
| |
168,638 -
281,030 |
7% minus 7,987.40 |
| |
281,030 -
538,978 |
8% minus
10,797.70 |
| |
Over 538,978
= 6% |
Agricultural
(rustico) is charged at the flat rate of 5%, whereas Urban land (urbano)
is charged at a rate of 6.5%. |
If you are unsure how much the IVA or IMT will be, it is advisable to check with the local
Finanηas before you enter into a Promessa Contract. |
| *The above figures were current as of
May 2010. |
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