Portugal is fashion. As described in my blog post Portugal’s New Popularity, 2017 was a record year in both property sales and tourist arrivals, contributing to the fastest economic growth in this century, quicker than the European Union average. An estimate by Statistics Portugal (INE) revealed that Portugal’s gross domestic product (GDP) increased from 1.5% in 2016 to 2.7% last year. Continue reading
Some weeks ago, the intermunicipal community of the Algarve (AMAL – Comunidade Intermunicipal do Algarve) agreed on the introduction of a region-wide tourist tax, although details have not yet been decided.
As it seems, out of the 16 councils, only Silves voted against the introduction of a tourist tax in the Algarve. Continue reading
Everyone who recently visited Portugal must have felt it’s new vibe. It’s almost as if it awoke from a long rejuvenating sleep, presenting itself to the world in a more attractive shape since the end of the recession in 2013.
Hidden behind the big neighbour Spain for decades, Portugal suddenly overcame its unfamiliarity and became a hotspot for both visitors and investors. For its inhabitants this certainly did not come as a surprise as we have been asking ourselves for a long time why its varied natural beauty, superb gastronomy, welcoming people and rich cultural heritage have not been enough to convince many people to explore this country. Continue reading
It is now official: 2017 was the best year ever in terms of property sales, at least since 2009 when this sort of data was collected and registered for the first time.
It certainly does not come as a surprise that the Portuguese property market has seen a massive recovery since 2014, after a heavy 5 year recession period but probably hardly anyone anticipated such a fast recovery. A recovery which has become a new boom. Continue reading
After the heavily criticised proposal of the State Budget for 2018, presented on the 13th of October 2017, which aimed to drastically change the Simplified Tax Regime (Regime Simplificado), the government has now presented a milder version.
Nevertheless, the new rules will affect most of the self-employed professionals such as lawyers, architects, doctors, journalists and owners of holiday rental properties, with an annual invoiced income over 27,360€. Continue reading
With the State Budget 2018, changes may be introduced to the current Non Habitual Residency (NHR) status.
With this tax regime, created in 2009, pensions from foreigners, who change their residence to Portugal, become exempt from tax during a period of 10 years. Continue reading
With the state budget 2017 a new “wealth tax” in the form of an additional tax on higher-value properties, called AIMI (Adicional Imposto Municipal sobre Imóveis) has been created, replacing the existing Stamp Duty (Imposto de Selo) which used to be charged on residential properties or building plots with a fiscal value (VPT – Valor Patrimonial Tributável) above 1,000,000€. Continue reading
Although Decree Law no. 80/2017 from the 30th of June primarily refers to tourist accommodation establishments, it also introduces some changes and updates to the AL legislation. Continue reading
As described in my blog post CGT in Portugal, the sale of a property may cause CGT liabilities when, in simple terms, the sales price (valor de realização) is higher than the purchase price (valor de aquisição).
Owners of AL properties have been caught by surprise when they heard about potential CGT liabilities associated to the business activity of renting out their property to holidaymakers (CAE 55201 and 55204). Continue reading