Portugal Property Services

THE SOVEREIGN PORTUGUESE PROPERTY PURCHASE PLAN

Since 2002 there have been various reforms of property taxation by the Portuguese authorities, including the introduction of a penalty tax rate which increased the level of Municipal Tax (rates) payable in respect of properties held by companies included on the Portuguese Finance Ministry “blacklist”. That tax rate is now set at a flat 7.5% of the “Valor Patrimonial” (Rateable Value) making the tax payable unacceptable for most properties.

Notwithstanding the above, there are still many advantages to be achieved by holding Portuguese property in the name of a suitable non “black listed” company.

For details of this concept please contact, in the first instance, port@sovereigngroup.com


MUNICIPAL PROPERTY TAX PAYMENTS (IMI)

As a clients’ fiscal representative Sovereign will receive and deal with the Municipal property tax bills (IMI). It is very important that these are dealt with in a timely manner as interest and fines can be very quickly applied. In severe cases the Tax Department may force a sale by auction of a property which is delinquent for non-payment of Municipal Tax. Never take chance on this and for more information on our services contact Marina Hardy on mhardy@sovereigngroup.com


PROPERTY TRANSFER TAX (IMT)

Property Transfer Tax is a tax levied on the transfer for consideration of real estate located in the Portuguese territory. The acquisition of more than 75% of the share capital of a Portuguese company, which owns real estate located in Portugal, is also subject to IMT.

Whilst IMT for the purchase of property is usually settled by clients’ lawyers at the time of purchase, Sovereign can assist with payments.

For details of tax rates and compliance contact Marina Dutra on mdutra@sovereigngroup.com


PROPERTY HEALTH CHECK UP

A very popular service provided by Sovereign in Portugal is the Property Health Check whereby a thorough search of the title to your property is undertaken to establish it is good order or discover in advance any defects that could be a bar to a successful sale and put them right. The Property Health Check service includes providing you with a complete dossier of the documents you will need to produce for either a real estate agent or a buyer’s lawyer when you come to sell

Contact Sovereign to save time later! Do not be caught out at sale time by putting your property registrations in order now! Ask for details of this cost effective service and have peace of mind that your property is in “good health”.

For further information on this service please contact Isobel Costa on icosta@sovereigngroup.com


NON HABITUAL RESIDENCY STATUS

A special tax regime was unveiled in September 2009 as part of a general plan to stimulate growth and aiming to attract high level professionals and investors.

The principal effect is that an individual may benefit from the new regime for 10 consecutive years if he or she qualifies as a tax resident in Portugal and has not been taxed as a Portuguese tax resident in any of the 5 years preceding the year in which residence is established.

Under these circumstances any Portuguese source salary or self-employed income would be subject to a final flat rate tax of 20%.

In addition, and dependent on the terms of a double tax treaty between Portugal and the paying country, pension income may well be exempt from taxation for the 10 year period.
Sovereign has successfully applied for NHR status for many clients who now enjoy tax free pension income!

For more information contact Sónia Duarte on sduarte@sovereigngroup.com


GOLDEN RESIDENCY

The Golden Residency scheme is a fast track, investment based opportunity for non – EU citizens to gain residency of Portugal when that might have otherwise proved a complex and lengthy process.

The residency once granted gives the right to a Schengen Visa thus permitting free movement between the 26 European countries of the Schengen zone.
Sovereign is able to fully assist potential applicants for the Golden Residence Permit.

For more information contact Sónia Duarte on sduarte@sovereigngroup.com


DECLARATION OF TOURIST RENTAL INCOME

A new law on tourism rentals makes it mandatory for any individual letting property to register with the Tax Department as a business activity.

This new law became operative as from 27th November 2014 and includes some alterations to the Alojamento Local (AL) registration regime which requires any property owner who intends to let for short term tourist letting to register with the local council.

This is a complex area and if you intend letting your Portuguese property expert advice should be taken prior to doing so.

For more information contact Andreia Vieira on avieira@sovereigngroup.com


ALOJAMENTO LOCAL – TOURIST LETTING REGISTRATION

Linking in with the change in the law concerning tourism rental income mentioned above, is the necessity to register the letting activity with the local council.

Sovereign can assist with this arduous process and for more information contact Sónia Duarte on sduarte@sovereigngroup.com


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Tel: +350 200 76173