O IMI (Imposto Municipal sobre Imóveis – Municipal Property Tax) is a tax that is levied on the taxable value of rural and urban properties located in Portugal. The IMI came into force in 2003, replacing the Municipal Contribution, and reverts to the respective municipalities.
To the tax value (value registered in the building matrix) of the national real estate the following rates are applicable:
- Real Estate – 0.8%
- Urban real estate – between 0.3% and 0.5% (defined each year by each municipality)
- Real estate with tax domicile in “offshore” – 7.5% (regardless of the type of property).
Exempt from the municipal property tax:
* real estate for own and permanent housing whose tax value of the building is up to 157 500 euros (6 years)
* real estate for own and permanent housing whose tax value of the building exceeds 157 500 and less than 236 250 euros (3 years)
Note: The benefit must be requested up to 60 days after the six months destined for the assignment of the building to the respective ends.
The settlement of this tax is due to whoever owns the property on 31 December of the year to which the Tax relates.
Stamp duty, as the name implies, is a tax levied on acts and contracts. This tax must be paid in the deed of purchase and sale, and in the case of contracting housing loans (stamp duty on the deed of Mútuo with Mortgage).
Stamp duty is levied on the transaction value of the property or on the tax asset value. The higher of these two rates shall apply to the following rates:
Deed of Purchase and Sale – 0.8%
The settlement of this tax must be made by the buyers and carried out before the acquisition of the property in any finance office together with the IMT.
CPCV is a written agreement between seller and buyer that formalizes the commitment to transfer property, also establishing the terms and conditions of the business. This agreement, which must be notarized, legally binds the intervening parties.
C.P.C.V. includes the following information:
- Identification of the parties (buyer and seller);
- Identification of the property to be transacted;
- The maximum period for signing the deed and the counterparts;
- Transaction price, a form of payment, signal value and Payment phases;
- What is included in the purchase, for example, furniture, in the form of an attached inventory list;
- An explicit indication that the good will be sold free of any charges and charges.
The deed of purchase and sale is the official document where the transaction of the property is formalized, the contracting and credit conditions and the constitution of the mortgage. After signing the deed, the property will be registered in the name of the buyer at the Land Registry, as well as all public service contracts of the previous owner (s). The endorsement of the acquisition in the Finance Department (Tax and Customs Authority) is now done automatically by the notary.
For more information and clarifications, please contact us.