Source: Adobe Stock Author: Redaction Negotiations between the various parties regarding the State Budget for 2025 are ongoing, with different opinions being presented by the parties, and no consensus has been reached. Therefore, the Government will hold a new meeting on September 10 to discuss the various views and proposals of the different parties. The deadline for submitting the OE2025 proposal is October 10, at the Assembly of the Republic. Some of the recently approved measures will have a high cost, contributing to an increase in State Budget expenditure, amounting to 5.7 billion euros , even before it has been submitted and approved. Among the measures that increase the OE expenditure are, for example, the increase in IRS consignment to 1%, the exemption of taxes (IMT and Stamp Duty) for young people up to 35 years old buying their first home, the new tables for IRS rate reduction, the elimination of toll charges, an increase in pension values, among others. Read more about: Real estate fundraising: how to facilitate this process , Mortgage loans: new drop in Euribor rates.
Source: Adobe Stock Author: Redaction Since September 1, new IRS withholding tables have been in effect, aiming to balance and adjust the deductions made by Portuguese taxpayers, resulting in greater savings. This measure will provide relief for many families, with effects in September and October (new changes will be introduced in November and December). In practice, this change will allow many to recover the excess deductions they made since January this year. It also means that for retirees, pension amounts up to 1,202 euros gross will not be subject to IRS withholding. Therefore, those earning a salary of up to 1,175 euros gross will have 0% IRS withholding in September and October. For more details, the new tables are available for public consultation on the tax authoritys portal. Read more about: Registering land: where and when? Find out , Discover the worlds most curious constructions.
Source: Adobe Stock Author: Redaction Buying a property is one of the biggest inveastments that a person makes in life , and so, as with any other major decision, it is crucial to take the right steps when making the purchase offer. Many buyers, especially first-time buyers, who have never acquired any real estate property may feel lost in this process, but we have good news for you: is not difficult and to help you, we will guide you step by step! Write down the steps required to draw up a winning purchase proposal, increasing the likelihood of being able to buy your dream property and win good deals! 1. Assess your financial situation Before any other step, assessing your financial situation is critical to getting a clear view of your ability to purchase a home. This is where you will determine how much you can invest in a property , considering the purchase value, additional costs - such as taxes and fees - and your monthly expenses. A good starting point will be to calculate your effort fee , which you can do with a bank. By getting this calculation, you will have a sense of how much you will have to spend on the purchase, at an early stage and throughout your life, and thus understand whether it is possible or not to move forward with the acquisition. 2. Search the market Take the time to research the real estate market in the area where you want to buy a house. Analyze the prices of properties similar to the one you want to buy, as well as market trends and characteristics that influence the value of a home. This research will be fundamental to help you define a fair value to propose. However, at this stage, it is advisable to seek the services of a real estate agency that, with its own tools, can present you Comparative Market Analysis , and thus help you to achieve the right and fair selling price. 3. Visit the property It is essential to visit the property in person to have a better perception of its state, characteristics and potential. Take into account the positive and negative points of the property, and do not throw yourself head-first at the house you visit. Evaluate all your needs and expectations, and be realistic about your financial capabilities. 4. Gather documentation To formalize your proposal you will have to present some documents such as proof of identity, taxpayer number, IRS declaration and bank account statement. So, to be prepared and get a speedy process, make sure you have all the documentation in order before submitting your proposal as well as your financial evaluation. 5. Make the offer to the seller or agency The purchase proposal must contain your purchase intentions and information such as buyer and seller identification, property data, proposed value, payment method and deadlines for the completion of the purchase . The ideal is to have with you the help of a real estate broker, who will represent your interests and follow up the process with all the necessary knowledge bases. And consider that the proposal can be delivered either directly to the seller or to a real estate agent, depending on whether the person selling the property has opted for this type of services or not. And remember: be cordial, show interest and present a fair and proportionate proposal to the conditions indicated in the ad . 7. Negotiate with the seller After the offer is submitted, there may be some reticence on the part of the seller who, in the first instance, may even refuse it. So, you need to be prepared to negotiate with the seller if you even want to buy that property, and try to establish an agreement that is advantageous for both parties. Consider your limits and goals, and be flexible to find fair solutions for both. 8. Enter into the contract-promise of purchase and sale After reaching an agreement with the seller, it will be time to conclude the contract-promise of purchase and sale (CPCV), which formalizes the deal and defines the conditions of the purchase, as the final value of the property, the form of payment and deadlines and penalties in case of withdrawal or non-compliance with any of the clauses. 9. Complete the purchase You will reach the final stage, which means that you will have signed the CPCV and are ready to take the necessary steps to finalize the purchase. At this stage, you must perform the payment of the of the property, the public deed and the registration of ownership, always taking into account that, when accompanied by a specialized professional, everything will be simpler - not only ensures that the process is carried out legally, but it will also have a faster execution of bureaucracies. And to achieve exactly your goals, we leave you some extra tips: • Be proactive and show interest in the property when it is disclosed, contacting the advertiser to visit it; • Present yourself as a serious and reliable buyer; • Be willing to negotiate, but keep your limits in mind, no matter how much you want to buy the property; • Have the guidance of a trusted professional, such as a real estate agent. You can find the ideal real estate agency to accompany you here , ensuring that turns a somewhat complex process into a fast and rewarding experience.
Source: Adobe Stock Author: Redaction Receiving a home in inheritance is something relatively common in Portugal, at the death of parents, however, because it is a somewhat bureaucratic process, can bring with you some doubts that we are ready to help you clarify, especially because in Portugal the legislation requires some formalities. It is a process that includes not only the payment of taxes but also the presentation of essential documentation . And in the sale phase, additionally, there is the challenge of finding the right buyer and proceeding with the deed. We explain several steps to you, simplifying the process. First of all, what does the Portuguese law say? There are specific laws in Portugal for the sale of inherited real estate and therefore to start the process we identify t wo point-key that will help you better understand your rights and obligations as heir: • Inheritance If the house was inherited from a direct relative, namely parents, spouse or children, you are not subject to tax . However, if the inheritance comes from other relatives, such as uncles or cousins, it is subject to payment of the Real Property Transfer Tax, whose value will depend on the degree of kinship and the value of the property. • Capital gains If the house was sold for a higher value than that which was inherited, the heir is subject to payment of the Property Gains Tax (IMI) which is calculated on the difference between the purchase value and the sale value of the property. There are variables that are important to consider, such as the valuation of the property in the last twelve years and the devaluation of the currency, which has an impact on the IMI tax. In addition, if the inherited property was purchased before the date of January 1, 1989, or if it is a building land acquired before June 9, 1965, the capital gains will not be taxed . There are other exceptions, however, for more specific situations, the advice is to seek a lawyer or solicitor with legal knowledge to help you. What documentation is required for the sale of the inherited property? The certificate of death of the deceased and, if it exists, the testament will be required in the first place. Therefore, if the inheritance is not yet registered, you will have to do so with the Notary Public. After death, also gather the certificate of inheritance, the urban land caderneta, the energy certificate of the property, the license of use and the deed of purchase and sale of the property , if this is available. We would like to point out that, in order to sell the property, you must calculate and pay the taxes due in the distribution of finances, regularizing your contributory situation. From here, the ideal will be to hire the services of a real estate agency, so that you can be properly advised regarding the steps we have listed, necessary for the sale of the house: • Set the sale value - by determining a fair price for the property; • Advertise the property - advertise the house with the help of a professional, who will know which are the best channels to make your sale happen faster; • Negotiations and contract - negotiate with potential buyers and reach an agreement on the final price and terms of sale. Formalize the agreement through a purchase and sale contract (CPCV). We again emphasize that, for concrete cases, always ask for legal support from professionals specialized in inheritance law to advise you on your rights and obligations as an heir, but also the support of real estate agencies, choosing to sell the property through this medium. A real estate professional will help you throughout the process, dealing with the property valuation and sale negotiations. If you are looking for a service of this kind, find it here . And remember: selling an inherited home can be a complex process, but still, with the proper knowledge and professional support, you will have a smooth and successful process. Also understand: Differences between Inheritance and Meação: understand them , Heranças: what is the right of redemption? and Donation in life or receive inheritance: tax implications
Source: Freepik Author: Redaction Landlords with rents prior to 1990 will be able to access the help service created by the Lisbonense Association of Owners (ALP) for the request for compensation of the Tax Asset Value. The purpose of this service is to respond to the difficulty and complexity of the process , especially for landlords who, for the most part, are over 70. The process is extremely complex and difficult and we are talking about a fringe of owners over 70 with little or no digital literacy , says Diana Ralha, Director of APL. In this situation, there are thousands of landlords without the resources or knowledge to apply alone , aggravating the difficulty of the procedures and requirements established for the process. Among the requirements is, for example, the presentation of proof of IBAN with digital signature or certified by a notary, but also the requirement of the property certificate dated December 28, when the property certificates withdrawn now in July have the date of July and not what is required . There is also the issue of small print , as Diana Ralha points out, which focus particularly on the fact that compensation has to be claimed annually, and the years of annual rent increases, under the legislation, require communication within 30 days . Other topics that may interest you: Reduced mobility: Lisbon approves measures to improve access , Rents for municipal housing in Lisbon will not rise this year and What does the law say about landlords who do not pass receipts?
Source: Freepik Author: Redaction The Municipal Property Tax (IMI) is, first of all, a mandatory tax in Portugal, paid annually by the owners of rustic and urban buildings, and its value varies according to the ceilings defined by the Municipalities where the properties are located , to which they reverse payments by financing essential public services such as garbage collection, street lighting or infrastructure maintenance. In the case of a tax, IMI is applied on the Tax Asset Value (VPT), which consists of the value assigned by the Tax and Customs Authority (AT) to a particular property, considering factors such as area, location, construction characteristics and state of conservation . Its rate varies between 0.3% and 0.45%, being defined annually by each municipality. But now that you understand what IMI consists of, understand why it is necessary. What is IMI for? IMI is one of the main municipal taxes in Portugal , which contributes to the financing of public services provided by local authorities, and therefore its revenue allows the construction and maintenance of infrastructures, the provision of social services and the promotion of local development. Each municipality has its own rate practiced, which you can consult on the Finance Portal. How is the IMI payment made? The payment of this tax can be executed in various ways, the most common being homebanking, ATM, MBWay, direct debit or through CTT Stores. And be careful, because in order to avoid penalties, it is important to note that the deadlines for the payment of this tax take place every year during the month of April. Before the deadline, a notification is sent to you by the Finance - the so-called settlement statement - with the amount payable and its ATM reference. However, the payment is divided into different maturities, depending on the amount to be paid and one chooses to amortise the total amount or pay it in instalments: • IMI up to 100€: the total payment runs until the last day of May; • IMI between 100€ and 500€: payment can be made in two phases - the 1st in May and the 2nd in November; • IMI above 500 €: payment can be made in three installments, in the months of May, August and November. What is the settlement statement and how to get? The IMI settlement declaration is a document sent annually by AT to property owners, which contains the value of the VPT of the property, its applicable IMI fee and amount payable, considering again that payment dates may vary according to the total. Is it possible to reduce the tax amount? Some taxpayers may have access to exemptions , including people with disabilities, who benefit from full or partial exemption from IMI, depending on the degree of disability; low-income families, applicable in whole or in part according to the income of the aggregate and VPT of the property; ruined properties, which benefit from the total exemption from IMI; and real estate intended for housing, which benefit from the 30% reduction of IMI on the value of the property intended for own and permanent housing. Still, it will also be possible to verify if the VPT is correct, since this is the indicator that serves as the basis for the calculation of IMI, and that is updated by the Finance every 3 years. Therefore, for any of the situations, inquire with the Portal das Finanças and consider that, on an annual basis, is obliged to pay the tax, noting that non-payment can lead to the payment of a fine, the loss of the right to payment by instalments or, in more serious cases, a tax enforcement procedure. Stay informed about other topics like this: What is the IMT and how it is calculated? Discover and Understand what is the Matrix Article of a property
Source: Freepik Author: Redaction According to the Portuguese Tourism Confederation (CTP), the package of 60 measures presented by the government, entitled the Accelerate the Economy Programme, is very positive for tourism , since it includes strategies and measures that reinforce support for the sector, namely through the creation of credit lines that aim to support sustainable projects in the interior. We have a package of measures that strategically considers tourism, projecting it and based on its fundamental importance for the Portuguese economy, praised CTP President Francisco Calheiros. Among all the measures, the CTP highlights: the decision to go ahead with measures already proposed by the Confederation, such as the progressive reduction in corporate income tax; the review of SIFIDE II; the review of goodwill; the review of the definition of small Midcap and Midacp; the launch of a new tourism strategy; the strengthening of digitalisation in tourism; as well as an environmental and climate sustainability plan for tourism, the restructuring of the tourism training model and the programme for integrating tourism migrants. The CTP indicates that there are initiatives on which it was going to launch a proposal soon , with the government having listened to and considered the suggestions that the CTP has been making over the last few years . Even so, Francisco Calheiros warns that now, as with the new airport, in addition to the announcement of the measures, their implementation is lacking. Related topics: Accelerate the Economy programme will boost support for tourism , Government moves to gradually reduce corporate income tax from 2025 and Government believes tourism will account for 20% of GDP by 2030
Source: Freepik Author: Redaction In Portugal, an eviction action is a judicial proceeding aimed at ending a lease, forcing the tenant to vacate the property, and it is an action that can only be initiated in specific situations, provided for in the law, so it is important that you know the appropriate legal procedures and protect yourself if you are a tenant of a rented property. According to Article 1083 of the Civil Code, this situation can be carried out by landlords in the following contexts: • Because there was no rent payment; • Non-compliance with the rules of good neighborhood, quiet or hygiene, having been violated the rules of the condominium regulation; • Illegal use of the building for a purpose that undermines good customs or public order; • Use of the building for a purpose other than that for which it is intended; • Do not use the house for more than 12 months; • Total or partial, temporary or permanent and onerous or free assignment of the enjoyment of the building, when ineffective, illegal or invalid with the landlord. Thus, if a tenant is in arrears with the payment of rents, the landlord can initiate an eviction action after the 3rd month of delay, without the need for notice, but also if other clauses of the lease have been breached or violated, particularly through damages caused to the property, subletting the property without authorization of the landlord or situations that put the security of the building at risk. In the case of the termination of the lease agreement, in some situations, automatically, there is no need for judicial intervention , because it is a cession situation, however , if there is resistance on the part of the tenant to leave the property, the landlord can ask the court to order the eviction of the tenant . It is important to note that, even before resorting to the judicial route, a landlord must try the extrajudicial route, seeking a negotiated solution. How does the extrajudicial eviction process work? First, it will be necessary to execute an extrajudicial notice, which is the notification to the tenant in writing, informing him of the reason for the eviction and granting him a deadline to regularize the situation, in case of non-compliance for more than 3 months. This notification may also be through a legal representative, namely a solicitor, lawyer or execution agent, through registered letter and with acknowledgement of receipt. Once the notification is sent, the tenant has 1 month to settle the payments . However, if the default is maintained or the values are not refunded, the lease is automatically terminated, and the tenant has to return the property to the landlord . If still refuse to do so, the tenant can be evicted, putting into action the special eviction procedure . What is a special eviction action? In this situation, the eviction is carried out through a procedural means for the realization of the termination of the lease, applicable when the tenant refuses to leave the property on the date provided for by law or as a result of the agreement between the parties. In Portugal, the special eviction action takes place, first, through the communication of the termination of the contract, based on the non-payment of rent for more than 3 months or for a delay of more than 8 days in the payment of the amounts, for more than four times, followed or interpolated, in the period of 1 year, being made the revocation of the contract, which ends up expiring by the term. It may also expire, as opposed to renewal, or by denunciation for housing of the landlord or family members of the landlord, by free denunciation, profound works or even by denunciation of the tenant. To perform a special eviction action, the landlord can resort to the Tenant and Landlord’s Desk (BAS) before going to the courts, but can only be used if stamp duty has been settled and rents have been declared by the landlord . The steps of the dump shall be: • Notification to the tenant, either electronically from the BAS or on paper, by completing a form. Alternatively, notification may be made by a legal representative; • Inquilino has 15 days to vacate the property or, if applicable, to pay the rent due; • If there is opposition from the tenant to the eviction, this power requires the deferral of the occupation of the property . From here, there are two alternatives 1. If there is no opposition on the part of the tenant , the title of eviction of the property is issued and the landlord can effect the eviction immediately, giving the tenant 30 days to remove all his property. If this period is exceeded, the goods will be considered abandoned. On the other hand, if the tenant refuses to leave, the landlord will have to appeal to the court through a court order. 2. If the tenant objects to the eviction on grounds of unfounded, a judge must intervene through special and urgent judicial proceedings. In this case, and for the opposition to move forward, it is mandatory that the payments of the security deposit, justice fee and deposit of the past due rents are ensured. Can there be no eviction? The answer depends on whether, in addition to the opposition, the deferral of the vacancy has been submitted, for compelling social reasons. In this situation, deferral is decided in court, taking into account the arguments provided by the tenant and the landlord, in particular whether or not the tenant has other housing, the number of persons constituting the household to live in the rented property, their age, state of health and, in general, the economic situation of all parties. If you are facing an eviction action, it is important to seek expert help. And remember that the Portuguese legislation on urban rental is complex and may change, so we recommend reading all the documentation provided by the competent bodies and consulting a specialized professional for advice and updated information appropriate to your specific situation. Inquire about other topics: What is the exchange of a house? Understand this concept , What is the gift in fulfillment? Discover this concept and What is personal insolvency and how to order?
Source: Freepik Author: Redaction The Economic Acceleration Plan , with more than 60 proposals to foster economic growth in Portugal, was approved this Thursday , July 4, in the Council of Ministers, and with it, new measures that will advance, in particular the new regime for non-habitual residents which, in addition to involving scientists and researchers, will also cover other qualified professions. The ordinance of this measure will be published in Diário da República in the coming weeks, however, the Minister of Finance, Joaquim Miranda Sarmento, has already been able to say that this new regime will operate with a rate of 20% on the income of these non-habitual residents, foreigners or Portuguese immigrants who have not lived in Portugal for at least five years. The previous Government in the State Budget for 2024 (OE2024) created a standard in the Statute of Tax Benefits, we will regulate through ordinance this standard, covering exclusively the income category A and B, which will have a rate of 20% , indicated the Minister of Finance, during the conference where the plan was presented. Thus, according to the explanation provided by the Executive , the regime will apply to non-residents who will reside in Portugal and who have not lived in Portugal in the last five years, without having previously benefited from the regime of non-habitual residents (RNH). Read more topics like this in SUPERCASA Notícias to stay abreast of everything that happens in the country
Source: Freepik Author: Redaction As announced on Thursday, July 4, the Minister of Finance, Joaquim Miranda Sarmento, the gradual reduction of corporate income tax (IRC) will advance , as foreseen by the electoral program of the Democratic Alliance (AD). The announcement was made at the end of the Council of Ministers, and the measure is integrated in the package of 60 proposals that aim to accelerate the economy , already approved by the Executive. Thus, the IRC will fall from 21% to 19% already from 2025, and the goal is that the tax will reach 15% in 2027 : in 2026, the rate will decrease to 17% and, in 2027, to 15% , according to Minister Miranda Sarmento. The impact of the measure is estimated at around EUR 500 million per year in terms of the level of revenue loss and will have an overall cost of EUR 1.5 billion. The decrease of 2 percentage points (p.p.) means about 500 million euros per year of right effect, but we did not account for the indirect effects of increased IRC revenue through increased growth and other taxes through job creation and better wages, he stressed. The Prime Minister, Luís Montenegro, concluded: In order to have more capitalized companies, we will proceed to comply with the Government’s program of reducing the IRC rate up to 15% by 2027. To have companies with more scale, more prepared to invest . Therefore, in this sense, the objective of the Executive is to ensure that the growth of companies does not imply loss of support due to the factor of becoming larger , with Montenegro stressing that there are small and medium-sized enterprises that, in becoming large, lose almost all support instruments at once . He explained: this Council of Ministers prevents this from happening. We want micro to be small and medium can be large and big to internationalize more . Other topics that may be related: Consumer confidence indicator increased in June , Indicator of economic activity accelerated in April
Source: Freepik Author: Redaction The exemption of IMT and Stamp Duty (IS) in the purchase of home by young people up to 35 years can generate tax losses , already from August, when the measure comes into force, since last year, compared to the same period, losses were recorded in both taxes, according to the tax authorities. In a note published in early June, the Tax Authority (AT) indicated: in 2023, the Municipal Real Estate Transfer Tax (IMT) corresponded to 1,751 million euros, obtaining, in relation to the previous year, a decrease of 0.7% . However, the revenue from the IMT distributed by the municipalities increased by 1.1% compared to 2022, to 1,675 million euros. Regarding the number of IMT collection notes issued in 2023, which amounted to approximately 288 thousand, there was a decrease of 10% compared to 2022, adds the Treasury. On the Stamp Duty, AT explains that it stands out, negatively, the revenue related to the purchase of real estate, with a decrease of 10% compared to the same period . Thus, approximately 330 million euros were collected in Stamp Duty from the purchase of real estate, while in the lease and sublease the IS amounted to only 19.8 million euros, adding 20.4% compared to 2022. Thus, by contemplating the Government measure that provides for the exemption of IMT and Stamp Duty, municipalities will feel a decrease in revenues from these two taxes, although the executive has already guaranteed that municipalities will be fully compensated . Continue reading: Bastonários foresees intensification of deferrals of deeds , Exemption from IMT and Stamp Duty: measure divides Portuguese and Tax exemption in house purchase allows access to over 35
Source: Freepik Author: Redaction Regarding its visit to Portugal for another evaluation under Article IV, the International Monetary Fund (IMF) has left some warnings for Government measures, namely the IRS Jovem, which may create a dent in public accounts. According to the IMF, the Young IRS may cause considerable losses of tax revenue, and does not guarantee the retention of young people in the country, being therefore uncertain . As indicated: age-based preferential rates of personal income tax (IRS) will lead to considerable loss of income, although their effectiveness in limiting youth emigration is uncertain . Since this is a measure that will cost around EUR 1 billion in revenue, which will no longer enter the state coffers, the IMF does not believe that it would generate positive revenue, and this measure provides for a maximum tax rate of 15% on taxable income, for young people up to 35 years. With regard, on the other hand, to the IRC and the Government’s proposal to progressively reduce this tax, the IMF clarifies that it can help align the average rate with the Eurozone average, while encouraging business growth. In this way, the international fund indicates that a comprehensive tax reform could reduce distortions and increase revenues, through a simplification of the system that reduces exemptions. In this way, it would give scope to compensate the losses resulting from the desired reductions in the tax increases the income of individuals and collectives. Follow also: IMF praises macroprudential measure of Banco de Portugal
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