Wednesday, January 24, 2007
I’m about to buy a property. How much will I pay in IMT taxes?
This must be one of the top doubts in most people minds upon buying a house. Allow me to give you a little help on that. Here’s the IMT table for 2007, for continental Portugal.
I know it looks a bit confusing at first sight (especially in Portuguese…didn’t have it in English, I apologise) but it’s really simple. Let me explain:
If you’re buying a home to live full time, you want to look at the first, top table. Other than that, refer to the second table.
Now, an example to do the math:
I’m buying a holiday apartment that cost me, let’s say, 200.000€.
I refer to the second table and to the fourth line, that covers properties from 159.800,00€ to 266.400,00€.
I use the corresponding percentage, in this case 7%, and I multiply the price of the property with it. So:
200.000,00€ X 7% = 14.000,00€
I grab this value, and subtract the number on the right of the table, in this case 7.567,01€:
14.000,00€ - 7.567,01€: = 6432,99€ …And there you go; this is the number your check to finances must carry.
Rural land will always pay straight away 5% IMT.
Any other type of property (ex; shop, warehouse, etc) will pay 6,5% of the value.
If you buying thru an ‘Off-shore', or if your residence is in a country with more favourable fiscal rules, IMT will always be 8%.
No numbers to subtract in this last three cases.
Pretty simple!
¶ 10:49 PM
This must be one of the top doubts in most people minds upon buying a house. Allow me to give you a little help on that. Here’s the IMT table for 2007, for continental Portugal.
I know it looks a bit confusing at first sight (especially in Portuguese…didn’t have it in English, I apologise) but it’s really simple. Let me explain:
If you’re buying a home to live full time, you want to look at the first, top table. Other than that, refer to the second table.
Now, an example to do the math:
I’m buying a holiday apartment that cost me, let’s say, 200.000€.
I refer to the second table and to the fourth line, that covers properties from 159.800,00€ to 266.400,00€.
I use the corresponding percentage, in this case 7%, and I multiply the price of the property with it. So:
200.000,00€ X 7% = 14.000,00€
I grab this value, and subtract the number on the right of the table, in this case 7.567,01€:
14.000,00€ - 7.567,01€: = 6432,99€ …And there you go; this is the number your check to finances must carry.
Rural land will always pay straight away 5% IMT.
Any other type of property (ex; shop, warehouse, etc) will pay 6,5% of the value.
If you buying thru an ‘Off-shore', or if your residence is in a country with more favourable fiscal rules, IMT will always be 8%.
No numbers to subtract in this last three cases.
Pretty simple!
¶ 10:49 PM
