Properties classified as Heritage
The acquisition of properties considered national interest, public or municipal, may benefit from IMT exemption.
Are you thinking about buying a property?
When buying a property, whether for housing or investment, you must consider all the costs you will have to bear throughout the purchasing process to find the one that best suits your needs and possibilities.
In this article, you can find out what taxes you will pay when purchasing a property and how to reduce your burden!
PURCHASE OF PROPERTY:
What Taxes will you have to Pay?
Lounge Real Estate
july 2024
Source: ePortugal and Doutor Finanças
Properties for Rehabilitation
You can benefit from IMT exemption when dealing with properties over 30 years old or in Urban Rehabilitation Areas acquired for rehabilitation works.
To this end, the rehabilitation work must begin within six months of acquisition.
Properties for Resale
Properties for Resale
Properties for Resale
The purchase of properties within the scope of the resale economic activity is exempt from IMT if resold within one year after their acquisition.
In addition, you must meet some requirements:
- The property, when resold, cannot be resold again
- No works or changes must have been carried out that modify the Tax Asset Value of the property
- When purchasing the property, you must prove that you practice resale activity and have resold properties in the previous two years
Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
In this context, all properties purchased, rehabilitated, or built to be placed on the rental market through the Rent Support Program are exempt from IMT.
Land acquired to build residential properties is also exempt. To this end, the prior control procedure must begin within two years following the acquisition, and 700/1000 of the buildings in horizontal ownership, or all buildings in total ownership or autonomous fractions should be allocated to the Rent Support Program.
Properties for Own and Permanent Housing
Properties intended for personal and permanent housing up to €101,917 in Continental Portugal and up to €127,396.25 in the Autonomous Regions are exempt from paying IMT.
Buying a property implies paying taxes on its value, representing many of the costs supported when making this investment. However, there are situations in which you can benefit from tax exemptions, which will help you optimize the investment.
At the moment of the deed, there are two taxes to pay: Municipal Tax on Onerous Property Transfers and Stamp Tax. Additionally, owning a property implies the annual payment of Municipal Property Tax.
Municipal Tax on Onerous Property Transfers
Stamp Tax
Municipal Tax on Onerous Property Transfers
The amount to pay in Tax is determined considering the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply varies between 1% and 10% depending on the purpose (own, permanent, or secondary housing), nature (urban or rustic), location (Mainland Portugal or Autonomous Regions), and value of the property.
However, some properties can benefit from tax exemption:
Stamp Tax
Property Tax
Stamp Tax
The amount to pay in Tax considers the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply is 0.8%.
Additionally, if you had to resort to bank financing to purchase the property, be aware that the financing amount is subject to the payment of stamp tax at a rate of 0.6%.
Property Tax
Municipal Tax on Onerous Property Transfers
Property Tax
This tax is paid annually by the property owner and considers its Property Tax Value. The rate to apply to rural properties is 0.8%, and for urban properties it can vary between 0.3% and 0.45%.
However, some properties can benefit from tax exemption:
Permanent Exemption
If the property is for permanent housing, it may be exempt from paying property tax. Therefore:
- The household's Gross Annual Income must be less than 2,3 x IAS, that is, €16.398 for 2024
- The Tax Asset Value of the properties owned by the household must be less than 10 x 14 IAS, that is, €71.296,40 for 2024
Temporary Exemption
If the property is for permanent housing, it may be temporarily exempt from paying property tax. This exemption lasts three years and can be extended for two years. Therefore:
- The household's Gross Annual Income must be less than €153.300
- The Tax Asset Value of the property is less than €125.000
Properties for Rehabilitation
When dealing with properties over 30 years old or in Urban Rehabilitation Areas, they can benefit from a temporary exemption from property tax. This exemption lasts three years but can be extended for two years.
Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be placed on the rental market through the Program are exempt from tax for three years, which can be extended for another five years.
To this end, the property must be rented within six months after its acquisition and allocated to the Programme for 5 to 10 years.
Other Exempt Properties
In addition to the properties mentioned, the following are also exempt from tax:
- Urban properties focused on energy production through renewable sources. However, the exemption is only 50%
- Garages, storage rooms, and utility rooms as long as they are part of the same building or housing complex in which the main residence is exempt. These are to be used only by their owner and respective household
- Land for the construction of residential properties that have not previously enjoyed exemption
- Properties considered national heritage, that is, when they are national monuments or of public or municipal interest;
- Properties that have stores with history and that are recognized by the municipality
- Rustic buildings aimed at forestry exploration and with a forestry exploration plan
Properties classified as Heritage
Properties classified as Heritage
The acquisition of properties considered national interest, public or municipal, may benefit from IMT exemption.
The acquisition of properties considered national interest, public or municipal, may benefit from IMT exemption.
Are you thinking about buying a property?
When buying a property, whether for housing or investment, you must consider all the costs you will have to bear throughout the purchasing process to find the one that best suits your needs and possibilities.
In this article, you can find out what taxes you will pay when purchasing a property and how to reduce your burden!
Are you thinking about buying a property?
When buying a property, whether for housing or investment, you must consider all the costs you will have to bear throughout the purchasing process to find the one that best suits your needs and possibilities.
In this article, you can find out what taxes you will pay when purchasing a property and how to reduce your burden!
PURCHASE OF PROPERTY:
PURCHASE OF PROPERTY:
What Taxes will you have to Pay?
Lounge Real Estate
july 2024
Lounge Real Estate
july 2024
Source: ePortugal and Doutor Finanças
Source: ePortugal and Doutor Finanças
Properties for Rehabilitation
Properties for Rehabilitation
You can benefit from IMT exemption when dealing with properties over 30 years old or in Urban Rehabilitation Areas acquired for rehabilitation works.
To this end, the rehabilitation work must begin within six months of acquisition.
You can benefit from IMT exemption when dealing with properties over 30 years old or in Urban Rehabilitation Areas acquired for rehabilitation works.
To this end, the rehabilitation work must begin within six months of acquisition.
Properties for Resale
Properties for Resale
Properties for Resale
Properties for Resale
Properties for Resale
Properties for Resale
The purchase of properties within the scope of the resale economic activity is exempt from IMT if resold within one year after their acquisition.
In addition, you must meet some requirements:
- The property, when resold, cannot be resold again
- No works or changes must have been carried out that modify the Tax Asset Value of the property
- When purchasing the property, you must prove that you practice resale activity and have resold properties in the previous two years
The purchase of properties within the scope of the resale economic activity is exempt from IMT if resold within one year after their acquisition.
In addition, you must meet some requirements:
- The property, when resold, cannot be resold again
- No works or changes must have been carried out that modify the Tax Asset Value of the property
- When purchasing the property, you must prove that you practice resale activity and have resold properties in the previous two years
Properties and Plots linked to the Lease Support Program
Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
In this context, all properties purchased, rehabilitated, or built to be placed on the rental market through the Rent Support Program are exempt from IMT.
Land acquired to build residential properties is also exempt. To this end, the prior control procedure must begin within two years following the acquisition, and 700/1000 of the buildings in horizontal ownership, or all buildings in total ownership or autonomous fractions should be allocated to the Rent Support Program.
The Rent Support Program promotes access to affordable housing compatible with family income.
In this context, all properties purchased, rehabilitated, or built to be placed on the rental market through the Rent Support Program are exempt from IMT.
Land acquired to build residential properties is also exempt. To this end, the prior control procedure must begin within two years following the acquisition, and 700/1000 of the buildings in horizontal ownership, or all buildings in total ownership or autonomous fractions should be allocated to the Rent Support Program.
Properties for Own and Permanent Housing
Properties for Own and Permanent Housing
Properties intended for personal and permanent housing up to €101,917 in Continental Portugal and up to €127,396.25 in the Autonomous Regions are exempt from paying IMT.
Properties intended for personal and permanent housing up to €101,917 in Continental Portugal and up to €127,396.25 in the Autonomous Regions are exempt from paying IMT.
Buying a property implies paying taxes on its value, representing many of the costs supported when making this investment. However, there are situations in which you can benefit from tax exemptions, which will help you optimize the investment.
At the moment of the deed, there are two taxes to pay: Municipal Tax on Onerous Property Transfers and Stamp Tax. Additionally, owning a property implies the annual payment of Municipal Property Tax.
Buying a property implies paying taxes on its value, representing many of the costs supported when making this investment. However, there are situations in which you can benefit from tax exemptions, which will help you optimize the investment.
At the moment of the deed, there are two taxes to pay: Municipal Tax on Onerous Property Transfers and Stamp Tax. Additionally, owning a property implies the annual payment of Municipal Property Tax.
Municipal Tax on Onerous Property Transfers
Stamp Tax
Municipal Tax on Onerous Property Transfers
The amount to pay in Tax is determined considering the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply varies between 1% and 10% depending on the purpose (own, permanent, or secondary housing), nature (urban or rustic), location (Mainland Portugal or Autonomous Regions), and value of the property.
However, some properties can benefit from tax exemption:
The amount to pay in Tax is determined considering the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply varies between 1% and 10% depending on the purpose (own, permanent, or secondary housing), nature (urban or rustic), location (Mainland Portugal or Autonomous Regions), and value of the property.
However, some properties can benefit from tax exemption:
Stamp Tax
Property Tax
Stamp Tax
The amount to pay in Tax considers the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply is 0.8%.
Additionally, if you had to resort to bank financing to purchase the property, be aware that the financing amount is subject to the payment of stamp tax at a rate of 0.6%.
The amount to pay in Tax considers the highest value between the Deed Value and the Tax Asset Value of the property. The rate to apply is 0.8%.
Additionally, if you had to resort to bank financing to purchase the property, be aware that the financing amount is subject to the payment of stamp tax at a rate of 0.6%.
Property Tax
Municipal Tax on Onerous Property Transfers
Property Tax
This tax is paid annually by the property owner and considers its Property Tax Value. The rate to apply to rural properties is 0.8%, and for urban properties it can vary between 0.3% and 0.45%.
However, some properties can benefit from tax exemption:
This tax is paid annually by the property owner and considers its Property Tax Value. The rate to apply to rural properties is 0.8%, and for urban properties it can vary between 0.3% and 0.45%.
However, some properties can benefit from tax exemption:
Permanent Exemption
Permanent Exemption
If the property is for permanent housing, it may be exempt from paying property tax. Therefore:
- The household's Gross Annual Income must be less than 2,3 x IAS, that is, €16.398 for 2024
- The Tax Asset Value of the properties owned by the household must be less than 10 x 14 IAS, that is, €71.296,40 for 2024
If the property is for permanent housing, it may be exempt from paying property tax. Therefore:
- The household's Gross Annual Income must be less than 2,3 x IAS, that is, €16.398 for 2024
- The Tax Asset Value of the properties owned by the household must be less than 10 x 14 IAS, that is, €71.296,40 for 2024
Temporary Exemption
Temporary Exemption
If the property is for permanent housing, it may be temporarily exempt from paying property tax. This exemption lasts three years and can be extended for two years. Therefore:
- The household's Gross Annual Income must be less than €153.300
- The Tax Asset Value of the property is less than €125.000
If the property is for permanent housing, it may be temporarily exempt from paying property tax. This exemption lasts three years and can be extended for two years. Therefore:
- The household's Gross Annual Income must be less than €153.300
- The Tax Asset Value of the property is less than €125.000
Properties for Rehabilitation
Properties for Rehabilitation
When dealing with properties over 30 years old or in Urban Rehabilitation Areas, they can benefit from a temporary exemption from property tax. This exemption lasts three years but can be extended for two years.
When dealing with properties over 30 years old or in Urban Rehabilitation Areas, they can benefit from a temporary exemption from property tax. This exemption lasts three years but can be extended for two years.
Properties and Plots linked to the Lease Support Program
Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be placed on the rental market through the Program are exempt from tax for three years, which can be extended for another five years.
To this end, the property must be rented within six months after its acquisition and allocated to the Programme for 5 to 10 years.
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be placed on the rental market through the Program are exempt from tax for three years, which can be extended for another five years.
To this end, the property must be rented within six months after its acquisition and allocated to the Programme for 5 to 10 years.
Other Exempt Properties
Other Exempt Properties
In addition to the properties mentioned, the following are also exempt from tax:
- Urban properties focused on energy production through renewable sources. However, the exemption is only 50%
- Garages, storage rooms, and utility rooms as long as they are part of the same building or housing complex in which the main residence is exempt. These are to be used only by their owner and respective household
- Land for the construction of residential properties that have not previously enjoyed exemption
- Properties considered national heritage, that is, when they are national monuments or of public or municipal interest;
- Properties that have stores with history and that are recognized by the municipality
- Rustic buildings aimed at forestry exploration and with a forestry exploration plan
In addition to the properties mentioned, the following are also exempt from tax:
- Urban properties focused on energy production through renewable sources. However, the exemption is only 50%
- Garages, storage rooms, and utility rooms as long as they are part of the same building or housing complex in which the main residence is exempt. These are to be used only by their owner and respective household
- Land for the construction of residential properties that have not previously enjoyed exemption
- Properties considered national heritage, that is, when they are national monuments or of public or municipal interest;
- Properties that have stores with history and that are recognized by the municipality
- Rustic buildings aimed at forestry exploration and with a forestry exploration plan
