If, for the purposes of determining the tax registration value of properties classified as “others”, the method of the additional cost of the plot of land’s value is applicable, the plot of land to be considered is the one that corresponds to the area occupied by the property.
In case of non-fenced urban or rural properties located in more than one parish, it is clarified that the respective registration is made in the parish where it is located the largest area or the largest number of constructions.
Municipalities should identify and report to the Portuguese Tax Authorities, until 31 December, degraded and vacant buildings or legal units, as well as land for construction intended for residential purposes, when located in urban pressure areas.
The increase of the IMI rate applicable to vacant buildings located in urban pressure areas is extended to degraded buildings and land for construction intended for residential purposes, when located in such areas.
Under such increase, the IMI rate can be increased six times. An additional increase of 10%, in each of the following years, is also foreseen, capped at twelve times the IMI rate applicable.
The IMI exemption for buildings classified as of national monuments and buildings individually classified as of public or municipal interest is revoked.
The IMT exemption applicable to the acquisition of real estate by credit institutions and commercial companies under their control, under, among others, enforcement proceedings, bankruptcy, insolvency or transfer in lieu of payment ceases to apply if the real estate is sold to related entities, even if the sale occurs within the 5 years period.
A new tax rate of 7.5% is introduced for the acquisition of urban properties intended for residential purposes, whose taxable base (as a rule, the acquisition price or the tax registration value, whichever higher) exceeds EUR 1 million.
Formerly, a maximum rate of 6% is foreseen for the acquisition of urban properties intended for residential purposes, whose taxable base exceeds EUR 574,323 (in case of permanent place of residence) or EUR 550,836 (in case of residential properties not intended for permanent abode).
Rental income obtained under “Municipal Programs for affordable housing” (“Programas Municipais de oferta para arrendamento habitacional a custos acessíveis”) is exempt from PIT and CIT, provided that the income is obtained under lease or sublease agreements established for a minimum period of, at least, 5 years, whose rents do not exceed the limits foreseen in Ordinance no. 176/2019, of 6 June.
The above-mentioned exemption is dependent of approval from the Minister of Finance.
“Buildings classified as national monuments and of public or municipal interest are no longer exempt from annual property tax.”
Tax Lead Partner | Entrepreneurial & Private Business Leader | Member of the Executive Committee, PwC Portugal
Tel: Tel: +351 225 433 101
Marketing & Business Development, Senior Manager, PwC Portugal
Tel: +351 213 599 651