By presenting the Draft State Budget for 2017, the Portuguese government showed how significant will be the impact on the real state sector. What is this “new tax over property”? Read it out
What is the Additional to Property Tax?
This is a “new tax over property”, of 0,3%, levied on the value of the property (VP) of the urban properties located within the Portuguese territory, concerning the part where that overall property goes beyond 600 thousand euros.
Who is not affected by this measure?
The owners of urban properties classified as “industrials”, as well as of urban properties with touristic ends (well identified), are not contemplated in this “new property tax”.
When does it come into effect?
This is one of the measures integrating the proposes for State Budget for 2017, meaning that it is possible to be reinterpreted and evaluated again. In case of being approved, it comes into effect from the 1st January 2017.
What are the direct consequences?
The additional property tax is going to replace the Stamp Tax of 1% that used to be levied to properties with values over one million euros, so this tax (ST) will no longer exist.
Who takes advantages form this?
Owners with properties valuing over one million euros are taking advantage of the fact that, by not paying the Stamp Tax anymore, they end by paying less taxes than in the previous year.
Who will suffer the most with it?
The ratepayers with tax liabilities with values of property under one million euros are subject to pay twice of the property tax value paid the year before.
How can I get further information on this?
The General Direction for the Budget State provide all the information on draft budget state 2017. However, this document is written in Portuguese, what means you should have a Portuguese native or a dictionary next to you.