Am I liable for income tax in Portugal?
If you let your property in Portugal, as a non resident, you will have a liability to file an income tax return to the Portuguese Revenue.
What is the deadline date for Portuguese tax returns?
The deadline date for Portuguese tax returns is the 30th April each year.
What is the income tax rate in Portugal?
There is a flat rate of 15% applied to Portuguese income tax returns for any income arising from letting a property, after deducting allowable expenses.
What are classed as allowable expenses in Portugal?
The allowable expenses for tax returns in Portugal are:
Local rates – waste disposal, common area maintenance, IMI tax paid to the Town Hall each year, and any further maintenance expenses incurred.
Is mortgage interest relief available in Portugal?
For non residents filing tax Portuguese tax returns, mortgage interest relief is not allowable as a tax deduction on your Portuguese tax return.
What is the current rate of Portuguese Capital Gains Tax?
Non residents incur a flat rate of 25% CGT in Portugal. Most will also incur CGT in their home country also, and the amount paid in Portugal would be deducted to arrive at the net figure. The CGT has to be declared by the 25th May of the following year.
What are the penalties for late filing of my Portuguese tax returns?
A standard late filing fee of €50 will be applied to your Portuguese tax
return, for any underpayment, a monthly interest rate of 1% will be applied.
What is the tax year in Portugal?
The tax year in Portugal runs in line with the calendar year – 1st January – 31st December.
Do I need to apply for a tax ID number in Portugal?
In Portugal, it is not possible to carry out any legally binding act without a tax i.d number, such as buy property, or open a bank account with out first applying for a Numer De Identificacao (NIF). This unique code is needed also to file Portuguese tax returns.
What local taxes will I pay as a non resident?
IMI tax, is a property tax which must be paid each year. It is
calculated on the registered value of your property. There are set rates
applicable, depending on the municipality of your property, rustic areas incur
a rate of 0.8%, urban arrears incur a
rate of 0.4 – 0.8% and urban areas that are evaluated under the new propert tax
legislation will incur a rate of 0.2 – 0.5% IMI tax.
What is Property Transfer Tax?
Property Transfer Tax – Imposto Municipal Sobre Transmissions (IMT) is
payable on the transfer of immovable property in Portugal. The IMT applied depends
on the value of the property and the area, urban/rustic. For urban area, you
can expect to pay 6.5% IMT and for rustic areas, you can expect to pay 5% IMT.
What is a Fiscal Representative ?
A fiscal representative must be a Portuguese national , holder of a Portuguese permit or a Portuguesse company. The fiscal reprsentative will receive all correspondance from the Local Tax Office relating to Tax and will liase with the client as the need arises.
Do I need a fiscal Representative ?
Any non resident in Portugal that wishs to buy any asset e.g Car , property or even open a Bank account must appoint a fiscal representative . The representative will also arrange your first tax number (needed for property purchase) and will manage any tax questions that you may have in portugal on an ongoing basis.
Property Tax International can provide both fiscal representative & income tax filing services in Portugal.
Why is there a need for a Fiscal representative ?
The law states that any non-resident or company owning or selling a property in Portugal must appoint a Fiscal Representative and this appointment must be registered in the Local tax office. The Fiscal representative will ensure that you submit your annual tax returns in a timley manner.