Municipal Property Tax ( Municipal Real Estate Tax ) (“IMI”) applies to the taxable assessed value of properties (rural, urban or mixed) in Portugal. It was created by Decree Law no. 287/2003 of 12 November, which approved the “Municipal Real Estate Tax Code”. — The tax must be paid by those, who are property owners, … Read More
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Property & Taxes
Having a property in Portugal is always a wise investment, as long as you know how to manage all implied processes to its realization. The portuguese taxation system is a very important matter to take into account as further explained in this category.
Exchange of real estate and the IMT tax
Exchange of real estate In this case, you will only pay IMT if the real estate exchanged is given different values, or if there is a difference between their assessed values. Only those handing over property of a lesser value and paying the difference in cash, or those receiving a property with a … Read More
Reduction in IMT tax rate
Residential real estate may be entitled to a reduction in IMT when the purchase price is less than €574,323 (mainland Portugal) or €717,904 (Azores and Madeira) = reduced rate. This reduction also varies according to the real estate’s purpose (permanent primary residence of buyer = lower IMT than that of property intended for rental, … Read More
Cases of Exemption from IMT tax
Exemption Residential real estate purchased in 2011 whose value is less than €92,407 (mainland Portugal) or €115,509 (Azores and Madeira) are exempt from IMT. Other cases of exemption: — real estate (houses or land) up to twice the balance of the emigrant account used in the purchase. If the property’s price is €100,000 … Read More
Property Transfer Tax (IMT) tax benefits
Some transactions may be entitled to exemption from IMT, or a reduction in the tax rate (e.g. the purchase or exchange of residential real estate, up to a given amount). Exemption Residential real estate purchased in 2011 whose value is less than €92,407 (mainland Portugal) or €115,509 (Azores and Madeira) are exempt from … Read More
Portuguese Property Transfer Tax (IMT)
The Portuguese Property Transfer Tax / Real Estate Transfer Tax (IMT) refers to the transfer of property, in the case of a counterpart (e.g. the purchase or exchange of property or property rights, such as the right of usufruct or easement). Buyers of real estate (or, in the event of an exchange, the party receiving assets … Read More