Tax Guide 2022 | Property Tax and Additional to Property Tax

• Rural property in forest areas included in the forest intervention areas;
• Rural properties used forestry activity included in a forest management plan;
• Properties regarded as eligible investment under the Tax Regime for Investment Support (RFAI);
• Urban properties built, expanded, improved or acquired for a consideration, intended for residential purposes, with a registered value up to € 125,000, owned by taxpayers which total gross income of the household does not exceed € 153,300;
• Historical stores;
• Rural and urban property with low tax registration value held by taxpayers with low income;
• Properties which use is granted by construction and housing cooperatives and residents' associations to their associates;
• Urban property subject to urban rehabilitation, located in urban rehabilitation areas or urban properties built more than 30 years ago.

• Buildings or apartments vacant for over 2 years, and land for construction allowing residential use under the municipal structure plan, if located in urban pressure zones;
• Urban property totally or partially vacant for over 1 year;
• Buildings in ruins.

•  Amount lower or equal to € 100 – 1 instalment in May;
• Amount from € 100 to € 500 – 2 instalments in May and November;
• Amount over € 500 – 3 instalments in May, August and November.

• Individuals and undivided inheritances - deduction of € 600,000 to the taxable basis;
• Taxpayers that are married or living in non-marital status and opt to submit a joint tax return – deduction of € 1,200,000 to the sum of the TRV of all the relevant urban properties.

^{(1) In case of individuals, (i) a marginal rate of 1% applies to the taxable amount of more than € 1,000,000 and equal or lower than € 2,000,000 (or twice that amount in case of taxpayer that are married or living in non-marital status), and (ii) a marginal rate of 1.5% to the taxable amount that exceeds € 2,000,000 (or twice that amount for taxpayers that are married or living in non-marital status).
(2) In case of urban properties owned by corporations that are allocated to the personal use of the shareholders, board members or members of any administration management or supervisory bodies, the rates applicable to individuals also apply.}

• Assessment: made by the Portuguese Tax Authorities in June each year;
• Payment: during the month of September.

PIT 

• Option to include in the tax return: deduction to the fraction of the tax corresponding to the net income generated by properties subject to AIMI;
• Flat tax rate of 28% / Category B (lease or accommodation activities): tax deduction.
   

CIT

• Lease or accommodation activities: taxpayers have the option to deduct the AIMI paid, capped at the portion of the tax assessed that corresponds to the income generated by properties subject to AIMI; this option prevents the deduction of AIMI for the purposes of assessment of the taxable income subject to CIT.