Buying an apartment in Portugal (also known as “Apartamentos em Portugal” in Portuguese) offers so many promises like playing golf all year, eating freshly caught fish while watching the sunset over the Atlantic Ocean.
Its climate, beautiful coast and friendly communities make Portugal an attractive place. It’s a beautiful country and also the government keeping it that way with strict planning regulations to maintain the value makes Portugal an ideal destination to buy an apartment. Enjoy its long beaches, countryside and wonderful pine forests free.
Portugal has one of the lowest populations in Europe. With excellent Tax advantages as well as Non-habitual tax regime, there is no inheritance or gift tax and no wealth tax in Portugal.
Apartment buyers may have to pay several taxes related to the purchase such as legal fees, agent’s fees, notary costs and registration costs.
1) Payment of municipal property transfer tax (IMT) on completion. It is variable and depends on the sale price (or the taxable value of the property), the use to which the property is put and the location.
2) Payment of Stamp Duty.
3) Following completion, payment of annual taxes which include Municipal Property tax (IMI), assessed on the property’s taxable value (and any additional IMI tax if applicable).
4) Additional costs may include condominium fees, insurance and utility costs, and also villa management costs if you choose such a service.
Any income related to your property must be reported to the tax authorities in your annual tax returns. Non-residents can normally obtain double taxation relief through a foreign tax credit in their home jurisdiction.
Several requirements need to be met and a detailed tax analysis of your specific situation is required if you choose to rent out your property for tourism purposes.
Looking to buy T2, T3 and T4 Apartments in Portugal (also known as “Apartamentos em Portugal” in Portuguese)? Visit fortera.pt