Legal Property Portugal

What is the tax regime for non-habitual residents in Portugal?

The Portuguese government approved a new tax regime for non-habitual residents, as an incentive to attract foreign investors and highly skilled professionals as well as people having considerable net worth. The income of non-habitual residents may thus not be subject to taxation, if applicable, or benefit from a flat tax rate of 20%, when … Read More

Taxation of non-residents in Portugal

The income tax (Imposto sobre o Rendimento das Pessoas Singulares – IRS) falls upon the whole income of the resident taxpayer in Portugal. Earnings coming from abroad must be considered as well. According to the portuguese law, the taxation system relies on the universal principle. The earnings are grouped into categories, which are subject … Read More

Is my house in Portugal suitable for tourist accommodation?

Tourism in Portugal – particularly accommodation – has been and predictably will be one of the most important economic activities. Since 2008, Portugal has a legislation that allows a quick and efficient licensing of houses for tourism, which is a very practical solution for anyone looking to buy a house in Portugal. The decree-law n. … Read More

Which are the coefficients for calculating the taxable assessed value (VPT) in Portugal?

Here is the description of the coefficients to calculate the VPT in Portugal. VPT = Vc x A x Ca x Ci x Cq x Cv -Vc Base value of the buildings = average construction cost per m2 (currently set at € 482.40) + value of the land (25% of that cost). Currently, the Vc … Read More

The Taxable Assessed Value (VPT) for rented buildings in Portugal

The taxable assessed value (VPT) of rented buildings may not exceed 15 times the annual income. To benefit from this limit, the owners must submit the report of the last received rental income until August 31, 2012, and tax identification number of the tenant (model approved by the Ministry of Finances). This report … Read More

How to calculate the tax assessment value (VPT) of your property in Portugal?

When it comes down to paying taxes, it is always good to know how certain values have been calculated. To know the tax assessment value (VPT) of your property in Portugal you will have to take into account the following elements: – gross floor area – the exceeding area to the implantation ground … Read More

How much can the Municipal Property Tax rise in Portugal?

The taxable assessed value (VPT) of urban properties, receives a yearly update in the framework of general evaluations. This can cause a significant increase of the Municipal Property Tax (IMI) in Portugal. There is a regime, however, that limits the increase of the IMI resulting from the VPT update considering the sum of … Read More

What are the functions of a condominium administrator in Portugal?

In a condominium, the management of common parts of the building is the administrator´s and co-owners responsibility. There are a lot of functions to be carried out by the administrator of the condominium, like stated below: – convene the assembly´s meeting – calculate the annual budgets – collect fees and make payments – charge the … Read More

Which are the main warranty terms for a building in Portugal?

Isn´t the warranty term always the same in any case or situation? Discover the determining factors of the warranty term for a building. The warranty term for a building is a right given to the consumer/buyer of the good, holding the builder responsible for construction defects, built-in damage or lack of conformity with the agreed … Read More

How to Create a Condominium?

Any co-owner can start the process of creating a condominium. For this purpose it is necessary to require from the Land Registry the title deed of the whole Horizontal Property. This document must describe: – which parts of the building correspond to the individual fractions – the relative value of each fraction in relation to … Read More

Posts By: Carlos Tome