2017 – What a Year!

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

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Local Lodging and the Simplified Tax Regime in 2018

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

Additional IMI Tax (AIMI)

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

Alojamento Local: CGT and Asset Allocation

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