IMT is levied on the transfer for consideration of real estate located in the Portuguese territory. Such transfers may also be subject to Stamp Tax. IMT is due by the purchaser and levied on the purchase price or on the property tax value, whichever is higher.
How much tax do you pay when buying a house in Portugal?
Ranging from 1% to 8%, rates depend on purchase price, its ultimate use and whether it is your main or second home. An additional stamp duty (Imposto de Selo) of 0.8% is payable on purchase. Although new developments attract a higher rate in the form of 23% VAT, this is usually included in the property price.
What is stamp duty Portugal?
You are required to pay stamp duty when purchasing a property in Portugal – unlike other countries the stamp duty is one of the lowest priced taxes you will pay. The rate of stamp duty is calculated at 0.8% of the purchase price. Stamp duty must be paid at the local tax office prior to signing the final deeds.
What taxes do you pay in Portugal?
How You’re Taxed in Portugal
- Income tax of up to 48%
- A ‘solidarity tax’ of 2.5% or 5% for higher incomes.
- 28% on interest income.
- Tax on capital gains when selling property and investments.
- Annual wealth tax of up to 1% on property interests worth over €600,000.
How is IMT calculated?
How to calculate IMT ?
- Choose the IMT table, corresponding to the property location and its use.
- Identify what range is the home’s value in (the used value shall be the higher of these two values: the acquisition value, and asset value)
- Multiply this range with the applicable rate.
Do you pay property tax in Portugal?
As an owner of property in Portugal you will have to pay property tax (Immovable Property Tax, IMI). … The Tax rates range from 0.3% to 0.45%. Property in rural areas are be taxed at 0.8%, whereas property in more urban areas will fall in the stated range.
Do you pay road tax in Portugal?
If you own a vehicle registered in Portugal you must pay every year the Unique Tax on Traffic (Imposto Único Circulação) IUC. … It is a mandatory tax for everyone who own a vehicle in Portugal.
How much is IMI tax in Portugal?
Currently, IMI tax rates fall within the following range, under the terms of article 112 of the IMI Code: Between 0.3% and 0.45% for urban buildings – this rate may, in the specific circumstances of paragraph 18 of that article, go up to 0.5%; Up to 0,8% for rural properties.
How much does a house cost in Portugal?
Data released by INE show that between January and March 2020, the median price of new-build properties in the country was 1,209 euros/m2, a figure slightly higher than that for existing housing: 1,102 euros/m2.
Are taxes low in Portugal?
Aside from the flat rate 20% income tax, there is a reduced or deferred tax rate on dividends or other income from investments – and in some cases the income may be exempt from tax. There is also no inheritance tax, gift tax or wealth tax in Portugal for non-habitual residents.
Is there a wealth tax in Portugal?
Portuguese Wealth Tax
Portugal’s version of wealth tax affects those whose ownership of Portuguese property is worth over €600,000, regardless of where they are resident. Rates are 0.4% for properties held by companies, 0.7% for individuals and 1% for those whose share in Portuguese property goes over €1 million.
How much money do I need to retire in Portugal?
How much money do you need to retire in Portugal? Portugal offers arguably the lowest cost of living in Western Europe. a couple can live comfortably in Portugal’s interior from about $1,700 a month. The budget for larger cities such as Lisbon is about $2,100 or $2,200 a month.
Are Portuguese taxes high?
Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2021.
Do I have to pay tax in Portugal?
Income tax rates in Portugal
Portuguese residents must pay personal income tax on their earnings. Most workers are taxed automatically through their payslips, but everyone must still complete an annual tax return. Married couples in Portugal must submit a joint return.