Does your property have a tax value (as seen on the IMI property tax bills) of €1,000,000 or more? The Portuguese tax department will be issuing additional stamp duty demands in respect of all properties where the tax value on the 31st October 2012 was 1 million euros or over.
It is understood that these tax demands will be issued by the tax department by the 30th November 2012 for settlement by the 20th December 2012. This new additional tax will be 0.5% of the tax value which means that for a property with a tax value of 1 million euros the bill will be €5,000. A nice Christmas present!
Next year properties whose value remains in the plus 1 million euro bracket, will continue to be charged under this new tax and an additional stamp duty bill at the tax rate of 1%, will be issued along with the normal IMI bills in April & September. This means for example that a property in Vilamoura will be paying €4,000 IMI and €10,000 additional IMT tax for 2012.
It may be possible to avoid this!
By asking the tax department for a revaluation of the property tax value.
Sovereign – Consultoria Lda in Lagoa, Algarve have successfully submitted requests to the local tax departments to reduce the tax values of their clients’ properties thereby saving many of them the additional stamp duty.
Even properties with lower tax values can have these updated downwards to save on the IMI property tax bills next year. If your property was revalued under the new CIMI system between 2004 and 2009 and there have not been any alterations to the property since that revaluation, it may be worth asking for a new assessment from the tax department. Because the base value for buildings established annually by the government has decreased and the coefficient for the aging of the property has increased most valuations are expected to be lower. To take effect next year, the assessment must be completed during 2012.
Sovereign are happy to offer this service to anyone, even if they are not existing clients so contact them now.
Sovereign - Consultoria Lda
Parque Empresarial Algarve
8400-431 Lagoa
Algarve
T: +351 282 340480
F: +351 282 342259
E: icosta@SovereignGroup.com
W: www.SovereignGroup.com
If your tax value reduces below €1,000,000 this year as a result of our submission, then you will not be charged the extra tax next year!
As in the case of all taxes, if the demand is not paid on time it will incur interest and penalty payments, and can lead to a charge being placed on the property for debt recovery.
