Portuguese fiscal numbers: What you don’t know can hurt you! This is the first in a three part series about potential problems lurking below the surface with your Portuguese Fiscal Numbers:
You may have heard already that the Portuguese Government now has taken serious measurements to ensure that taxes like I.M.I. (Rates or council tax), Mais-Valía (Capital Gains Tax) and I.M.T. (Transfer tax or Stamp duty) are really paid and collected.
For many years, the Portuguese government has been promising to reform the existing tax system in relation to private estate (Patrimonium), inheritance, and gift tax.
During the last couple of months a new tax reform was presented to Parliament and approved and part of it, the new Sisa (transfer tax) now called I.M.I. has become affective already as from 1-6-2003.
For many years the Portuguese government has been promising to reform the existing tax system in relation to properties and inheritance and gift tax, which has been subject to tax abuse for many years.
General: In another article on this web site I have tried to explain already who is considered by the Portuguese tax authorities to be tax liable in Portugal. Not being a registered resident does not exclude you for not being a possible tax payer in Portugal. Being a Resident however automatically qualifies you as being a tax resident in Portugal also.
Tax on rental income in Portugal As many of you rent out your property through our services it is maybe good to know if and what you have to declare to the Portuguese tax authorities (Finançes). It is known know that undeclared rental income is high on the list of the Finançes. All rental income either received inside or outside Portugal but related to in Portugal situated real estate is subject to either IRS (income) tax, for property owned in your own name or IRC (corporate) tax for properties owned by an offshore property company.
