Saving Purchase Costs

Offshore situation 2017

26 Dec 2002 in Offshores

THE SOVEREIGN PORTUGUESE PROPERTY PURCHASE PLAN Since 2002 there have been various reforms of property taxation by the Portuguese authorities, including the introduction of a penalty tax rate which increased the level of Municipal Tax (rates) payable in respect of properties held by companies included on the Portuguese Finance Ministry “blacklist”. That tax rate is now set at a flat 7.5% of the “Valor Patrimonial” (Rateable Value) making the tax payable unacceptable for most properties. The same changes also imposed a tax on a presumed rental income calculated at 1/15th of the “Valor Patrimonial” in the case of a property held by such a blacklisted company.

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