Tax

Portugal Tax Guide

Take a quick crash-course in the Portuguese Tax world. This guide will help you to understand your obligations towards the Portuguese Fiscal system. Some important tax legislation regarding property and finance in Portugal:

VPT – Valor Patrimonial Tributário: a property’s tax valuation determined by the Tax Office. All properties are given a tax valuation by the Tax Office which is revised every time the property has a change of ownership and whenever the Tax Office deems necessary.

IMT – Imposto Municipal sobre as Transmissões Onerosas de Imóveis: is the tax on the transfer of ownership rights of real estate, i.e., land or property transfer tax, previously known as SISA (2004).

IMI – Imposto Municipal de Imóveis: is a tax on domestic property. Equivalent to the Council Tax or ‘rates’ in the UK, the IMI is a system of local taxation collected by the Tax Office according to, the local IMI tax rate determined by the local city council, and the property’s tax valuation determined by the Tax Office. All individuals registered on the deeds as owners of the property on the 31st of December are liable for the IMI tax regarding that full year.

IS – Imposto do selo: is the stamp duty tax which is applicable to all contracts, documents and titles, including the free transfer of property.

IRS – Imposto sobre o rendimento de pessoas singulares: is the tax return due to income received by individuals in Portugal.

IRC – Imposto sobre o rendimento de pessoas colectivas: is the tax return due to income received by collective people (companies) in Portugal.

IVA – Imposto sobre o valor acrescentado: is the equivalent to VAT, value added tax.

Note: These guidelines are intended only as a summary. Tax laws and regulations change frequently and sometimes unexpectedly.

 

Our partners, Tax Angels, can help you deal with all matters related to tax in Portugal, including the mandatory Fiscal Representation, tax filing, corporate structure setup, Non Habitual Residents, etc.

 

Please feel free to contact them directly on www.portugal-tax.com