Ongoing Taxes After Your Property Purchase
When buying a property in Lagos, the Algarve or anywhere in the world it is important to take into account the ongoing taxes you will be required to pay, after the property becomes yours.
In Portugal the current applicable taxes are as follows:
Property Tax (IMI)
The Property Tax (IMI) is the tax to be paid to the council, also known as council tax. It is a percentage of the property value, which is decided by the council.
The tax ranges from 0.4-0.5 percent per year, depending on the council.
The tax ranges from 0.4-0.5 percent per year, depending on the council.
Rental Income Tax
When you own a property that you are renting out, you need to pay tax on the income.
For Portuguese residents, the rental income is added to the wage and together the income will altogether be taxed as usual.
For non-residents this is different. A non-resident that rents out a property longterm, pays 28% tax over the income of the property, minus costs. A non-resident that rents out a property short term (holiday let), pays 28% tax over only 35% of the income. 65% of the income is tax free.
More information
To find out more about the buying process, please click here.
For more 'personalised' information about taxes, the buying costs and/or the buying process in Portugal, please contact us on:
Email: info@propertyspecialistsalgarve.com
Phone: (+351) 912 488 155
Or leave us a message here.
Interesting Articles & Additional Information
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LEGAL ASSISTANCE:
Recommended Lawyers In Portugal -
TAX ADVANTAGES:
The NHR Scheme -
BUYING A PROPERTY:
The Process & Costs -
GOLDEN VISA SCHEME:
What You Need To Know -
SELLING PROPERTY:
A Guide To Selling In Portugal -
RETIRING TO PORTUGAL:
Things To Consider
Contact Info
Contacts
Property Specialists Algarve
Telephone +351 912 488 155
Telephone +351 914 237 926
info@propertyspecialistsalgarve.comAddress
Praca do Poder Local Lote 7, CV C, Lagos 8600-524, Algarve, Portugal
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