Are you thinking about buying a property?
Within the scope of the housing crisis experienced in Portugal, several measures were implemented through the More Housing Program to generate more homes.
In this article, you can discover the main changes that More Housing brought to IMT and to IMI and how you can benefit when purchasing your next property.
MORE HOUSING:
Main Changes at IMT and IMI
Lounge Real Estate
july 2024
Source: 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.
The More Housing Program began in October 2023 to facilitate access to housing and, therefore, brought some changes in terms of taxes.
When purchasing a property, you must pay the Real Estate Transfer Tax on the deed. The amount to pay is calculated based on the highest value between the Deed Value and the Tax Value of the Property. The rate applied, which can vary between 0% and 8%, will depend on the destination, location, and destination of the property.
After purchasing the property, you must pay the Urban Property and Territorial Tax annually. The amount is calculated based on the Property Tax Value of the property. The rate to be applied is 0.8% for rural properties. The rate for urban properties can vary between 0.3% and 0.45%, depending on the municipality.
Changes to Tax on Onerous Property Transfers
Changes to Tax on Onerous Property Transfers
Changes to Tax on Onerous Property Transfers
With the entry into force of More Housing, were implemented changes regarding properties that may be exempt from IMT:
Exemption Building Plots and Housing Properties
When prior control has already started but has not yet received a response, land for construction and housing properties are exempt from Property Tax
Changes to Municipal Property Tax
Changes to Municipal Property Tax
Changes to Municipal Property Tax
The entry into force of More Housing implemented some changes regarding discounts, fees, and exemptions applied to the Municipal Property Tax:
Exemption Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be on the rental market through this Program are exempt from Property tax. This exemption occurs for three years but can be renovated for another five years.
To this end, the rental contract has to happen within six months following the acquisition of the property. Additionally, the property must stay in the Program for at least five years. If you want to obtain the renovation to benefit from the exemption for another five years, the property has to stay in the program for ten years.
New Family Discounts
Families with dependents can benefit from a discount, depending on the number of dependents, on the Property Tax applied to the property intended for permanent housing:
- €40 discount when you have 1 dependent
- €70 discount when you have 2 dependents
- Discount of €140 when you have 3 or more dependents
Tax on Abandoned Rural Buildings
The basic rate to apply to rustic buildings with forestry areas abandoned is now 2.4%, and the amount of tax cannot be less than €20.
Tax on Vacant Properties and Plots to be Built
Properties that have been unoccupied for more than one year or in ruins and construction plots located on urban land and can be used for housing are subject to an increase in the Property Tax rate.
The rate to apply varies between 3% and 4.5%. There is also an annual fine of 20%, which cannot be higher than 6% and 9%, respectively.
Additional to Municipal Property Tax
The Additional to Property Tax applies when the Tax Asset Value of all properties and plots an individual or company owns is greater than €600.000. The applied rate can vary between 0.7% and 1.5% for individuals and between 0.4% and 1% for companies.
With the implementation of the More Housing Program, urban properties intended for housing linked to the Rental Support Program are exempt from paying the Additional Property Tax.
On the other hand, anyone who owns buildings that have been unoccupied for more than a year, partially unoccupied buildings, or buildings in ruins will not be able to deduct €600.000 from the Additional to Property Tax calculation.
Are you thinking about buying a property?
Within the scope of the housing crisis experienced in Portugal, several measures were implemented through the More Housing Program to generate more homes.
In this article, you can discover the main changes that More Housing brought to IMT and to IMI and how you can benefit when purchasing your next property.
Are you thinking about buying a property?
Within the scope of the housing crisis experienced in Portugal, several measures were implemented through the More Housing Program to generate more homes.
In this article, you can discover the main changes that More Housing brought to IMT and to IMI and how you can benefit when purchasing your next property.
MORE HOUSING:
MORE HOUSING:
Main Changes at IMT and IMI
Lounge Real Estate
july 2024
Lounge Real Estate
july 2024
Source: Doutor Finanças
Source: 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.
The More Housing Program began in October 2023 to facilitate access to housing and, therefore, brought some changes in terms of taxes.
When purchasing a property, you must pay the Real Estate Transfer Tax on the deed. The amount to pay is calculated based on the highest value between the Deed Value and the Tax Value of the Property. The rate applied, which can vary between 0% and 8%, will depend on the destination, location, and destination of the property.
After purchasing the property, you must pay the Urban Property and Territorial Tax annually. The amount is calculated based on the Property Tax Value of the property. The rate to be applied is 0.8% for rural properties. The rate for urban properties can vary between 0.3% and 0.45%, depending on the municipality.
The More Housing Program began in October 2023 to facilitate access to housing and, therefore, brought some changes in terms of taxes.
When purchasing a property, you must pay the Real Estate Transfer Tax on the deed. The amount to pay is calculated based on the highest value between the Deed Value and the Tax Value of the Property. The rate applied, which can vary between 0% and 8%, will depend on the destination, location, and destination of the property.
After purchasing the property, you must pay the Urban Property and Territorial Tax annually. The amount is calculated based on the Property Tax Value of the property. The rate to be applied is 0.8% for rural properties. The rate for urban properties can vary between 0.3% and 0.45%, depending on the municipality.
Changes to Tax on Onerous Property Transfers
Changes to Tax on Onerous Property Transfers
Changes to Tax on Onerous Property Transfers
With the entry into force of More Housing, were implemented changes regarding properties that may be exempt from IMT:
With the entry into force of More Housing, were implemented changes regarding properties that may be exempt from IMT:
Exemption Building Plots and Housing Properties
Exemption Building Plots and Housing Properties
When prior control has already started but has not yet received a response, land for construction and housing properties are exempt from Property Tax
When prior control has already started but has not yet received a response, land for construction and housing properties are exempt from Property Tax
Changes to Municipal Property Tax
Changes to Municipal Property Tax
Changes to Municipal Property Tax
The entry into force of More Housing implemented some changes regarding discounts, fees, and exemptions applied to the Municipal Property Tax:
The entry into force of More Housing implemented some changes regarding discounts, fees, and exemptions applied to the Municipal Property Tax:
Exemption Properties and Plots linked to the Lease Support Program
Exemption Properties and Plots linked to the Lease Support Program
The Rent Support Program promotes access to affordable housing compatible with family income.
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be on the rental market through this Program are exempt from Property tax. This exemption occurs for three years but can be renovated for another five years.
To this end, the rental contract has to happen within six months following the acquisition of the property. Additionally, the property must stay in the Program for at least five years. If you want to obtain the renovation to benefit from the exemption for another five years, the property has to stay in the program for ten years.
The Rent Support Program promotes access to affordable housing compatible with family income.
The Rent Support Program promotes access to affordable housing compatible with family income.
In this sense, all properties purchased, rehabilitated, or built to be on the rental market through this Program are exempt from Property tax. This exemption occurs for three years but can be renovated for another five years.
To this end, the rental contract has to happen within six months following the acquisition of the property. Additionally, the property must stay in the Program for at least five years. If you want to obtain the renovation to benefit from the exemption for another five years, the property has to stay in the program for ten years.
New Family Discounts
New Family Discounts
Families with dependents can benefit from a discount, depending on the number of dependents, on the Property Tax applied to the property intended for permanent housing:
- €40 discount when you have 1 dependent
- €70 discount when you have 2 dependents
- Discount of €140 when you have 3 or more dependents
Families with dependents can benefit from a discount, depending on the number of dependents, on the Property Tax applied to the property intended for permanent housing:
- €40 discount when you have 1 dependent
- €70 discount when you have 2 dependents
- Discount of €140 when you have 3 or more dependents
Tax on Abandoned Rural Buildings
Tax on Abandoned Rural Buildings
The basic rate to apply to rustic buildings with forestry areas abandoned is now 2.4%, and the amount of tax cannot be less than €20.
The basic rate to apply to rustic buildings with forestry areas abandoned is now 2.4%, and the amount of tax cannot be less than €20.
Tax on Vacant Properties and Plots to be Built
Tax on Vacant Properties and Plots to be Built
Properties that have been unoccupied for more than one year or in ruins and construction plots located on urban land and can be used for housing are subject to an increase in the Property Tax rate.
The rate to apply varies between 3% and 4.5%. There is also an annual fine of 20%, which cannot be higher than 6% and 9%, respectively.
Properties that have been unoccupied for more than one year or in ruins and construction plots located on urban land and can be used for housing are subject to an increase in the Property Tax rate.
The rate to apply varies between 3% and 4.5%. There is also an annual fine of 20%, which cannot be higher than 6% and 9%, respectively.
Additional to Municipal Property Tax
Additional to Municipal Property Tax
The Additional to Property Tax applies when the Tax Asset Value of all properties and plots an individual or company owns is greater than €600.000. The applied rate can vary between 0.7% and 1.5% for individuals and between 0.4% and 1% for companies.
With the implementation of the More Housing Program, urban properties intended for housing linked to the Rental Support Program are exempt from paying the Additional Property Tax.
On the other hand, anyone who owns buildings that have been unoccupied for more than a year, partially unoccupied buildings, or buildings in ruins will not be able to deduct €600.000 from the Additional to Property Tax calculation.
The Additional to Property Tax applies when the Tax Asset Value of all properties and plots an individual or company owns is greater than €600.000. The applied rate can vary between 0.7% and 1.5% for individuals and between 0.4% and 1% for companies.
With the implementation of the More Housing Program, urban properties intended for housing linked to the Rental Support Program are exempt from paying the Additional Property Tax.
On the other hand, anyone who owns buildings that have been unoccupied for more than a year, partially unoccupied buildings, or buildings in ruins will not be able to deduct €600.000 from the Additional to Property Tax calculation.
