CGT: Older Properties and Unauthorised Improvements Many property owners who acquired their homes in Portugal in years gone by face a common dilemma: they bought at a time when real estate was dirt cheap. These houses were often primitive and in poor condition, requiring substantial renovations.
As a relatively new tax, it is not surprising that many have been caught unaware of their liability to pay AIMI and, more importantly, how they can avoid the disturbing consequences.
AL- Holiday Rental Licence procedure explained by afpop With the kind permission of afpop, the below information about Alojamento Local - short-term accommodation for tourists - normally is available only to afpop Members but is reproduced to show non-members the type of detailed information that is available.
New Social Security contributory scheme for independent workers The revamped Social Security contributory plan for sole traders has been passed into law. Under the new regime, the deductions applicable to the self-employed will be based on the average income of the previous trimester, rather than the preceding year. The first declaration under the new rules will take place in January 2019, based on the earnings of the last quarter of 2018. According to the diploma, until the changes take effect, the contribution base established in October 2017 will continue to apply. Keep in mind that the following rules will only start as of January 2019, not in 2018.
New ID cards – a digital revolution The Portuguese government is launching a new citizenship card for registered foreigners in Portugal, as part of the ‘Simplex + 2018’ programme. The aim is to streamline administration of all foreign citizens and reduce much of the country’s bureaucracy. The Ministry announced that the new card will be issued in the final quarter of 2019. nstead of the current ‘residency card’, by the end of 2019, all foreign nationals living in Portugal will need to have a valid Citizen’s Card (Cartão do Cidadão).
Long debated in Parliament. Finally, they have reached a verdict. The scary part that short time rentals would be restricted to 90 days was not approved
Below you will find the new law which will come into effect 60 days after being approved.
New laws passed this week by the leftist parties in Parliament has seen local councils and home owners’ associations or condominiums handed extensive powers in regulating and restricting the number apartments that can qualify for local lodging licences (Alojamento Local - AL). The decision has already been criticised by associations representing landlords, saying the move is a step in the wrong direction and will have a negative impact on tourism.
IMT – Tabelas Práticas 2018 (CONTINENTE – HABITAÇÃO PRÓPRIA E PERMANENTE)
Valor sobre que incide o IMT (€) Taxa marginal a aplicar (%) Parcela a abater (€) Até 92.407 0 0 De mais de 92.407 até 126.403 2 1.848,14 De mais de 126.403 até 172.348 5 5.640,23 De mais de 172.348 até 287.213 7 9.087,19 De mais de 287.213 até 574.323 8 11.959,32 Superior a 574.323 Taxa Única de 6% (CONTINENTE – HABITAÇÃO) Valor sobre que incide o IMT (€) Taxa marginal a aplicar (%) Parcela a abater (€) Até 92.407 1 0 De mais de 92.407 até 126.403 2 924,07 De mais de 126.403 até 172.348 5 4.716,16 De mais de 172.348 até 287.213 7 8.163,12 De mais de 287.213 até 550.836 8 11.035,25 Superior a 550.836 Taxa Única de 6%
The walls continue to close in on Offshore property holding companies in Portugal. Once a popular solution for home ownership, these structures are based in low-tax jurisdictions that allow shareholders to take advantage of certain “loopholes” to avoid paying Capital Gains tax when selling.
