Portugal Property Investment Taxes – An Overview

Portugal Property Investment Taxes – An Overview

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Portugal Property Investment Taxes – An Overview

The Portugal Property Market
Since May 2013 Portugal has been listed by OECD as one of the top countries in the world to buy and own property. According to them, Portuguese price-to-rent ratio makes Portugal one of the most attractive property markets in continental Europe.
The transparency, high quality, considerable presence of both foreign occupiers and international consultants, combine to secure Portugal’s reputation as a very highly-developed property market.
The laws which govern rental agreements are favourable to property owners, meaning that the eviction of tenants that do not pay can be expedited.
Most specialists predict taht the current trends of risng property prices will continue for at least 2 or 3 years.

Property Location
Lisbon, Cascais, and Sintra regions are the most lucrative property investment locations. Most schools and companies’ headquarters are located in these centres, and the Lisbon International Airport is the main hub for international flights.
Just behind the metropolitan regions is the Algarve in the south of Portugal, attracting millions of expatriates and tourists from all over the world.
The coastal nortwestern city of Porto has been attracting many international investors over the recent years, and property market there is noticably on the rise.
The interior regions of Portugal, traditionally overshadowed by the coastal areas, are now also attracting investors, fueled by the influx of tourist and new residents, drawn to the beauty of the Portuguese countryside combined with bargain asking prices.

Property Type
– Commercial property sectors offers excellent opportunities, particularly car parkings and office spaces
– Rural property is also available for sometimes exceedingly low prices
– The versatility of its use makes residential property the most popular property category still, for both private use and both short and long term rentals

Property Search
It may be done independently or by hiring an agent

Property Purchase and Taxes
Typically, a promissory contract is signed and a down payment is made, after which someone (normally your lawyer) is granted a power of attorney for to complete the exchange of final contracts and the property conveyance, once the required funds have been transferred to Portugal and all the paperwork is in order.
The stamp duty rate is 0.8%, while the transfer tax rates vary according to many factors, including the use or value of the property.

Property Management
Some examples of services provided by real estate management companies include: collecting deposits and rent, coordinating maintenance and repairs, maintaining and paying for utility and service contracts, overseeing property tax payments, negotiating rental agreements, and managing all dealings with tenants.
The property type, legal structure of the investment, the type of rental, all affect management charges. All of these factors should be negotiated once the details are defined and before the contract is signed.

Taxation of Rental Income
For non residential landlords, the tax rate for net rental income is 28%.
Short-term rental taxation is a little more complex, and it is recommended that the potential investor seeks professional advice before entrering this business.
For the resident corporate landlord, the gross rental income and all business expensess concur to the company’s profit, which is taxed at the normal corporation tax rate (21% with a municipal charge of up to 1.5%)

Taxation of Capital Gains
Full tax exemption is granted to any capital gains accrued from the sale of a property by an individual, provided that the property is their main residence, and the gains are used to pruchase another main residence in the EU.
50% of the net capital gains are either included in a resident individual’s total taxable income and taxed at progressive rates, or are included in a resident taxable profit calculation.

Investment Structure
Determine the best investment structure based on your goals
– Private direct ownership is the most practical and cost-effective solution for those seeking to simply own a property in Portugal
– For those who seek to invest a sizeable ammount in rental property market in Portugal, an EU company with a branch in Portugal is the most suitable investment structure, for the following reasons:
– While it will be taxed like a normal Portuguese company. The distribution of profits to the parent entity is not taxed.
– All business expenses will be tax deductible by the branch
– You can dispose of the parent entity rather than the property itself

A TOWER

For Sale

A TOWER

615,000€

In one of the most cosmopolitan locations in Lisbon, known for its urban and business lifestyle, the French School, Amoreiras shopping mall and its proximity to Avenida da Liberdade with luxury brands offer. Living on the top of Lisbon’s skyline, these exclusive apartments ensure extremely impressive views over the river, the city and Monsanto’s National […]

Alecrim 15

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Alecrim 15

285,000€

In between the fashionable Chiado neighbourhood and the cool river breeze, find your new apartment on a perfect combination of a pombalin traditional architecture with contemporary comfort. From a studio up to 2 bedroom apartments, Alecrim 15 comprises 19 residential units varying from 39sqm up to 101sqm. 2 bedroom apartments also offer an extra storage […]

96 m2
Santa Cruz

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Santa Cruz

245,000€

This new development is located nearby the sea in the area of Santa Cruz. This condominium features 17 villas from 3 to 4 bedrooms. Development Units Property Name Property Type Floor Parking Bedrooms Area (sq meters) Outdoor Area (sq meters) Price A TownHouse – 2 3 156,4 21 Sold B TownHouse – 3 4 153,9 […]

144 m2
Largo da Graça

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Largo da Graça

237,500€

Just nearby the Castle, the district of Graça is known for its astonishing views and vibrant life. Two of the most popular viewpoints in Lisbon are in this neighborhood. This neighborhood houses native residents and investors looking for a historical and characteristic feeling. This particular development is located in the heart of Graça and it […]

36 m2
1
Mar à Vista Residences

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Located on top of a beautiful cliff just in front of the ocean and the Nazaré Marina, Mar à Vista Residences will be a reference in Nazaré not only for its quality as permanent residence but also as an investment. Mar à Vista Residences is composed by 40 apartments organized in 6 different typologies: 1 […]

93 m2
1
ALEGRIA 350 GOLDEN VISA

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The Principe Real neighborhood was named after Queen D. Maria II’s firstborn son and is nowadays of the most elegant and calm neighborhoods in Lisbon. It’s one of the most vibrant and elegant areas of Lisbon filled with residences, trendy shops, stunning gardens and a couple of the city’s most tranquil squares to enjoy. When […]

122 m2
1
Benformoso Lux

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Benformoso Lux

370,000€

Placed in one of Lisbon’s coolest neighborhoods, Benformoso Lux stands on 4 floors and is comprised by 14 apartments from T1 to T4 Duplex, with areas ranging between 35 and 150 sqm. With a refurbished look, Intendente is one of Lisbon’s coolest neighborhoods in terms of culture and innovation. Its recent makeover is bringing new […]

102 m2
1
New renovated 2 bed in Lisbon with Ground floor only 240,000 EURO

Featured

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New renovated 2 bed (This unit is not GV compliant) Others are Streams is a dynamic and multifaceted place in the heart of the city of Lisbon that houses about 92 nationalities. This building is in the extinct parish of Angels. It is a zone of intense cultural activity. In the last 5 years, the […]

68 m2
2
2 Bed Apartment for sale in Lisboa, Portugal

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The city center is booming with great investments and return of income. This area is very popular for short-term renting and it is the most central area of Lisbon. Shops, Restaurants, traditional Portuguese cafes with an amazing variety of pasteis de nata, Baixa-Chiado is the place to be. Not only that, but you are two […]

53 m2
2
2
3 Bed Apartment for sale in Lisbon, Portugal

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This is an incredible 3 bedroom apartment in Oeiras, which is 10 min away from Lisbon, and 10 min away from Cascais. Oeiras is one the most famous councils in the greater Lisbon area, due to its excellent schools and universities, it’s business park centres Tagus Park and Lagoas Park with companies like Google, Cisco, […]

143 m2
3
2
1 Bed Apartment for sale in Lisbon, Portugal

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Find this cozy bright apartment in one of the most beautiful neighbourhoods in Lisbon historical centre – Janelas Verdes Fully refurbished and equipped, this apartment comprises one spacious living room with equipped kitchen, one bedroom on suite with closet and one toilette. All features were kept as shown in the pictures and all materials were […]

61 m2
1
2
1 Bed Apartment for sale in Lisbon, Portugal

For Sale

Graça is a former parish in the municipality of Lisbon, Portugal. At the administrative reorganization of Lisbon on 2012 it became part of the parish São Vicente. In the highest of the seven hills lies the historical district of Graça. Here you can feel the genuine atmosphere of Lisbon and its people, who live in […]

48 m2
1
1
2 Bed Apartment for sale in Lisbon, Portugal

For Sale

Graça is a former parish in the municipality of Lisbon, Portugal. At the administrative reorganization of Lisbon in 2012 it became part of the parish São Vicente. In the highest of the seven hills lies the historical district of Graça. Here you can feel the genuine atmosphere of Lisbon and its people, who live in […]

51 m2
2
1
2 Bed Apartment for sale in Lisbon, Portugal

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Bright 2 bedroom apartment in Baixa on a recently refurbished building. Spacious living room with 40 sqm, one bedroom on suite (16 sqm), another bedroom with 14sqm, fully equipped kitchen with 12 sqm . All areas with AC, double glazed windows, wood shutters, pinewood flooring, high ceilings and elevator. Enjoy Lisbon’s lifestyle from the heart […]

115 m2
2
2
2 Bed Apartment for sale in Lisbon, Portugal

For Sale

Graça is a former parish in the municipality of Lisbon, Portugal. At the administrative reorganization of Lisbon on 2012 it became part of the parish of São Vicente. In the highest of the seven hills lies the historical district of Graça. Here you can feel the genuine atmosphere of Lisbon and its people, who live […]

51 m2
2
1
Building Property for sale in Lisbon, Portugal

For Sale

The genesis of the neighborhood of Graça relates to the foundation of Convento dos Agostinhos, which took place in the thirteenth century, under the name of Santo Agostinho. In 1305 this became the Convento da Nossa Senhora da Graça, which later gave the name to the neighborhood itself. The Graça neighborhood, which in these times […]

1
A. R. 246

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A. R. 246

422,000€

The neighborhood located in the upper area of Almirante Reis Boulevard is a quite residential yet filled with small traditional shops. This traditional part of Lisbon is filled with constructions form the fifties and sixties and is a lively neighborhood. The A.R. 246 development fits in the original design of this neighborhood. The refurbishment of this […]

133 m2
3
Adega Lagos

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Adega Lagos

from 225,000€

This beautiful brand new property nearby the Marina will be finished by the beginning of 2021. This new development will feature an outdoor pool, children’s pool, indoor heated pool with a fantastic jacuzzi and also a gym. The entire project will also have gardens, storage room, underground parking and terraces with traditional tiles. The two […]

140 m2
3

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Portugal Property Investment Taxes – An Overview
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Portugal Property Investment Taxes – An Overview
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Portugal Property Investment Taxes – An Overview The Portugal Property Market Since May 2013 Portugal has been listed by OECD as one of the top countries in the world to buy and own property. According to them, Portuguese price-to-rent ratio makes Portugal one of the most attractive property markets in
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