Old Property Transmission Tax (Sisa)

Modified by D.L. n.º 287/2003 for Property Transmission Tax (IMT).

Property Transmission Tax (IMT).

Payable before the title od deeds act, and is due accordingly to the largest of the following values:

the value mentioned in the act or the contract or the tributary patrimonial value.

In case of no exemption of this tax, its payment can be done in any Service of Finances, before the realization of the title of purchase and sale.

It will have to keep the supporting document of the payment issued by Finance Department, therefore this will be asked to it when the title deeds act is appointed.

Table for calculation of this tax for the year of 2007, FOR PERMANENT RESIDENCE'S PROPERTIES' applicable to Continental Portugal:
   

Value for calculation of the Transmissions Tax (IMT) (*)	Tax	Amount to deduct
up 85.500 euros	0%	0 euros
from 85.501 up 117.200 euros	2%	1.710 euros
from 117.201 up 159.800 euros	5%	5.226 euros
from 159.801 up 266.400 euros	7%	8.422 euros
from 266.401 up 532.700 euros	8%	11.086 euros
from of 532.701 euros	6%	0 euros

Table for calculation of this tax for the year of 2007, FOR SECOND RESIDENCE'S PROPERTIES applicable to Continental Portugal:
   

Value for calculation of the Transmissions Tax (IMT) (*)	Tax	Amount to deduct
up 85.500 euros	0%	0 euros
from 85.501 up 117.200 euros	2%	855 euros
from 117.201 up 159.800 euros	5%	4.371 euros
from 159.801 up 266.400 euros	7%	7.567 euros
from 266.401 up 532.700 euros	8%	10.231 euros
from of 532.701 euros	6%	0 euros

(*) From January 2004, the liquidation of the Council Tax on Transmissions of Properties (IMT) is provisional and refers to largest of the following values: the value of the act or the contract or the tributary patrimonial value.

Liquidation can be corrected later on by the Tax authorities, if the value which will result from the evaluation carried out from the new Code of the Tax on Properties (CIMI) is higher than the value which was considered in the title of purchase and sale.

The declaration for effects of payment of the tax can be presented at any Service of Finances.

The Properties already registered in the matrix will be object of general evaluation on the basis of criterion defined in the new Code of the Tax on Properties (CIMI),during the next 10 years.

Priority in the evaluation is given to the Properties transmitted as from January 1, 2004. As envisaged in D.L. n.º 287/2003, of November 12, which created the new Code of the Tax on Properties (CIMI), the patrimonial value tributary of the urban Properties was corrected automatically on December 31, 2003 to take effect since 2004. The urban Properties that are not rented, the update were carried out on basis the coefficients of depreciation of the currency, published through Porterait n.º1 337/2003, of December 5.

In the case of rented Properties up December 31, 2001 and that they were maintained in this situation in September 2003, the correction was made on the basis of multiplication of the annual income by factor 12, prevailing this lower value that will have been sought like preceding subparagraph.

Pursuant to the CIMI, the patrimonial value of the urban Properties is updated triennalement on the basis of factor corresponding to 75% of the coefficients of depreciation of the currency fixed annually by would carry of the Minister for Finance for effects of income tax.

Table for calculation of this tax for the Properties without exemption or reduction of IMT for the year of 2005 :

Value for calculation of the Transmissions Tax (IMT)	Tax
Grounds for construction, commercial spaces, or urban Properties	6,5%
Rustic Properties	5%
Others (*)	15%

(*) For unspecified Properties, since they are acquired by entities resident in certaian territories (off-shores), approved by the Ministry for Finances.

IMT also is due on the celebration of the promissory Contract of Buying and sale (CPCV), in which is envisaged in the contract that the promising purchaser can yield his position to third party, and on the transfer of contractual position envisaged to CPCV. In this case IMT is not due again. Specific standards exists for their liquidation (which must be carried out before the celebration of CPCV or transfer).

In the case of exchange of Properties, the taxable amount is the declared difference in values or the difference between the patrimonial values of the Properties exchanged, if this one is higher than that.

It is referred in spite of the realization of the title of deeds, by lower value than the true value of the business, in addition to constitute a tax infringement, will give to the State (through public self-government or other entities) the right to acquire the building under the conditions described in the title, i.e., acquiring the building with its recent purchaser, by the price which consists in the title. This right already was exerted by some Ciy Councils.

Tributary Patrimonial Value

Value allotted to the property and that is register in the urban property matrix. Is recorded in the Matrix Document by the Service of Finances and is used as a basis calculate the Council Tax on Properties (IMI).

Autarkical Contribution

Modified by D.L. n.º287/2003 for Council tax on Properties (IMI).

Council tax on Properties (IMI).

It is a rate paid to the Council entities of the area where the property is located and which is calculated on the basis of percentage of the value mentioned in the matrix document. This value may not coincide with the current value of the property, therefore this register normally is only updated when a public title dedds act is taken place. Payment is carried out in the Finance Department of the arear where the property is located.

Annual Council tax, is calculated accordingly the patrimonial value tributary of the property. The property can be exempted of this tax by one period from 3 to 6 years, according to its tributary patrimonial value within 6 month after the title deeds act.. For this purpose, the owner will have to require this exemption in the Service of Finances of the area of the property, no later then 60 days.

Type d'Immeubles	Tax
Rustic Property	0,8%
Urban Property	0,4% a 0,8%
Urban property evaluated by the rules of the IMI	0,2% a 0,5%

How to apply for exemption of the Council Tax on Properties (IMI).

The houses for permanent dwelling of the familiar aggregate and what are intended o reant, can benefit of exemption of this autarkical tax, by one period from 3 to 6 years, according to the patrimonial value tributary of the building.

The new owner has a 60 days deadline, after the realization of the title act, to apply, in the Service of Finances of the area of the property, the Council Tax on Properties (IMI).

In the table are indicated the periods of exemption of tax on Properties, according to the patrimonial values of Properties urban or their independent fractions, built, widened, improved or acquired, intended permanent dwelling of their owner or familiar aggregate.

The period of acquisition it is counted starting from the date of acquisition or emission of the licence of use.

Council tax on Properties (IMI) D.L. n.º 287/2003 from November 12
Tributary Patrimonial Value(*)	Period of Exemption (Years) Dwelling of residence
up 150.000 euros	6
up 225.000 euros	3

(*)Value recorded at the Matrix Document by the Service of Finances which will be object of correction 
                                    automatic in December 31, 2003.

The Matrix Document will have to be revalidated in the service of Finances in order to record the new Tributary Patrimonial Value.

Construction, acquisition or improvement in building or their fractions independent for ends of dwelling, under cover of the Emigrating Economy System.

In this case, the owner benefits of one period of exemption during a 10 years.

IRS - More Values

They are taxed on IRS (Category G: Patrimonial increment) the profits obtained with the sale of a property. The tax must be paid by the vendor, after the celebration of the title of purchase and sale.

As established by the artº 10 of the Code of IRS, "more values" or "less values" will have to be included in the context of the liquid income received in terms of Income tax of Singular People (IRS) in the Category G of IRS in "Patrimonial Increment" (drafting of the Law of Budget for 2001). For effects of calculation of the income, "more Values"/"less values" only are considered in 50%, still affected by a monetary coefficient of correction, established by Law and by the supervision.

1. The product of the sale of the propery, during 2 years the maximum time, can be reinvested in the purchase of the new property of the same kind;

2. Acquired new property during 12 months the previous time as from the date of the sale of the current property;

3. If The building is rustic, affected to a commerce/agriculture/industrial activity, and was acquired before 01/01/1989.

Official Stamp Tax

Tax due by the purchaser at the time of the title act, referring to the value of acquisition/title deeds of the property (8/1000) and on the value of the loan by the Bank. In this last case, its value varies according to the time of the operation. Thus, for the operations from 3 to 5 years (exclusively), the value to be paid are 5/1000 and for the operations equal or higher than 5 years the value are 6/1000.

When has change of Institution of Credit, the purchaser is exempted tax on the value of the inherent loan in a new trust deed, up to the sum of the capital in debt.

The Mode of the Official Stamp Tax envisages the taxation by the value of the granted credit and according to the duration planned for the refunding of the credit: according to the credit time lower than one year, one to five years, or more than five years. With regard to the credit used in the form of currant account, or any other form in which the time of use whose credit it is not given or determinable, the Official Stamp Tax will be calculated on the monthly average obtained through the addition of the balances they were actually used, during the month, sought daily, divided by 30. The model of taxation holds account, not only thus the maximum sum of the granted credit, but also the period of its use.

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Note: The information contained in this document is of general nature and does not apply to any entity or particular situation. In spite of defaire of all the possible ones to provide information precise and current, we cannot guarantee that such information is precise in the date where is reçu/connue or who will continue to be precise in the future. Nobody must not act in accordance with this information without nonsuitable professional councils for each situation specifies. The detail contained in this summary is only useful eats guide of general orientation.