Source: Freepik Author: Redaction The National Institute of Statistics revealed this Tuesday, April 16, an increase in the tax burden, in nominal terms. This is 8.8% growth, which has set the figure at EUR 95 billion. However, the ratio fell from 36% to 35.8% of GDP, and the Portuguese economy grew more than the tax burden. The INE note reads that revenue from direct taxes increased by 10.7%, mainly reflecting the evolution of income from personal income tax (IRS), which grew by 9.4% , and adds: as for revenue from corporate income tax (IRC), this grew 13.9%, continuing to benefit from the behavior of the Portuguese economy in 2023. In this follow-up, there was an increase in direct taxes with growth of 5.5%, with greater expressiveness of VAT and PSI, with the aggravating of high inflation. On the other hand, effective social contributions grew by 11.7%, reflecting, in particular, the growth of paid employment, wage upgrades and the rise in the minimum wage. The institute also adds that the tax revenues of General Government have been set at 95 billion euros, increasing about 7.7 billion euros compared to 2022, a development that benefited from growth of 2.3% in volume, GDP and the context of high inflation. Despite the indicators, nominal fiscal and contributory revenue growth, which stands at 8.8%, was lower than GDP (9.6%) , while the ratio decreased from 36% to 35.8%, with GDP growing faster than the economy for the first time since 2019, which places Portugal as the country where the tax burden is lower than that of the European Union, which stood at 40.0%. Discover also: Portugal is the country most impacted by the ECB’s monetary policy , Insolvencies increased 19.5% in the 1st quarter of the year
Source: Freepik Author: Redaction The Tax Authority (AT) clarified last Friday, April 5, that the rents paid in s ocial housing are also included in the IRS deductions, provided that up to the limit of 586 € . Moreover, it informed that if the values do not appear automatically in the income statement, the tenant must enter them in Annex H of the model 3 declaration. Leasing contracts for urban buildings belonging to local authorities, concluded under the rent-supported regime [...] are subsumed under the legal regime established by the New Urban Lease Regime (NRAU), and, in these terms, the value of 30% of their rent, be deducted from the IRS collection of the respective tenant, up to the limit of 586 euros , indicates the TA. This clarification was passed after a request for information launched by a tenant about the possibility of inserting social housing rents in the Portal efatura, for the purpose of deducting expenses in the IRS. Thus, the amount to be deducted from the tax on expenditure on social housing rents is higher than the amount deductible with benefits outside the supported scheme. Therefore, in the normal system, tenants can deduct 15% of the rent costs from the tax payable, up to the limit of 502€, while social housing rents are deductible up to 586€, with a 30% discount. Also find out about New rate of 25% will cover all rents received in 2023 and VAT reduction for housing: APPII is happy with proposal
Source: Freepik Author: Redaction The Portuguese Tax Authority (AT) has released last years income statistics for 2022, making it possible to analyse the income earned by families that year , as well as the number of households that had to pay IRS or didnt even declare income. According to the statistics, in 2022, 5,807,704 Portuguese families submitted their annual income declarations to the IRS. Of this total, 42.4 per cent didnt have to pay IRS , which represents a universe of more than 2 million taxpayers exempt from paying the tax. The remaining 57.6 per cent had to pay 16,292 million euros , representing revenue for the state of 1,462 million euros more than in 2021, and 3,132 more than in 2020. It was also possible to conclude that, in 2022, only 70,000 households earned more than 100,000 euros gross per year . With regard to the distribution of the number of households with IRS paid, divided by income brackets, 74.2 per cent declared a gross income of between ten thousand and 40 thousand euros. But it was households with gross incomes between 13,500 euros and 50,000 euros that paid the highest percentage of the tax, which represents 7,022 million euros. The remaining revenue comes from households with incomes of more than 50,000 euros, with the tax paid in 2022 by this total of families reaching 7,789 million euros, or 48 per cent of the tax assessed and 986 million euros more than the same year last year. Number of families submitting tax returns is up According to AT data, between 2020 and 2021 the number of families who filed their tax returns increased by around 6% and, between 2021 and 2022, the growth was around 4.17%: this growth in the number of tax returns is due to the 3.35% increase in Model 3-1 tax returns [dependent work and pensions only], and the 5.78% increase in Model 3-2 tax returns [dependent work, pensions and other income], the AT states. It was also possible to conclude an increase in gross household income , with more families earning more than 100 thousand euros. In 2022, gross income rose by 9.25 per cent, the year in which the national minimum wage was increased by 40 euros. Read more: Inflation in Portugal rose 2.3 per cent in March, above the EU average , More than 400,000 personal income tax returns have already been submitted
Source: Freepik Author: Redaction The official figures available show that almost half a million IRS returns were filed on the first day of the filing deadline , which opened on Monday 1 April. By 1am yesterday, 2 April, just over 24 hours before the deadline for filing the annual IRS tax return, the Finance Portal had already registered 494,066 tax returns. Of these, 408,857 were from taxpayers who, in 2023, only collected income from dependent labour, i.e. category A, or from pensions, i.e. category H. The number of returns submitted by taxpayers with other types of income, according to the Finance Portal, was around 85,000. However, in either case, the figure includes the approximately 40,000 returns previously submitted this year, which relate to replacement returns or the first instalments of income from previous years, which are excluded from the current IRS campaign. Remember that the deadline for submitting your personal income tax return is 30 June , and you have three months to do so on the Finance Portal. By 31 July, as the law dictates, assessments must be completed and refunds paid by 31 August. Explore SUPERCASA Notícias and find more topics like this one
Source: SUPERCASA Author: Redaction Buying land to build on can be an alternative to buying a house, traditionally already built and ready to move into. In this situation, youll have to realise that its a lengthy process and involves some bureaucratic procedures, but that in the end, once its done, its advantageous and even more economical. From the conception of the project to the execution of the work, building a house can be the most viable option for those who want a tailor-made house within the limits of their available budget , and the first step to achieving this is to buy a plot of land on which to build a house. In this step, you need to take into account aspects such as the feasibility of building and the characteristics of the land. First of all, you need to check whether it is possible to build on the land you are interested in and whether it is located in an Urban Area of Illegal Genesis. If its on an allotment site, you should consult the most recent allotment licence, check that everything is in order and pay attention to the characteristics of the land, namely whether its sloping or uphill. Its best to look for flat land , as other types will always involve more costs. Key points to look at before going ahead with the purchase Check the lands documentation and consult the Municipal Master Plan to validate its plans and regulations; Pay attention to the morphological characteristics of the land - check for water tables, check the characteristics of the soil and check the slopes of the land; Confirm whether or not the land is part of a subdivision (you can consult the latest version of the licence and the detailed plans); Check whether or not there is already an approved project; Analyse the location , solar orientation , whether there are any derogatory factors around the land or whether it will not serve as a passageway for others. Approved projects vs. unapproved projects It is essential that you analyse all the variants explained above, as you will obtain crucial information on whether or not you can go ahead with the construction of your property. In this case, one of the most important is to understand whether or not the land is part of a subdivision . If it isnt, it means there wont be an approved project, which means youll have to submit a licensing project to the town hall and, at a later stage, apply for a building licence. Once these documents are in place, you must apply for a housing licence for the property so that you can live in it. In the case of land without approved projects, you have to fulfil all the stipulated requirements in order to get the licence and, until the construction phase, it will take time and patience, depending on the pace of work of the town hall where your land is located. On the other hand, if you buy land with an approved project, it will most likely already have an authorised licensing project and a building permit ready to go. However, you should be aware that if you buy a plot of land with an approved project, the property has to be built exactly as it is designed in the project, so if you want any changes or rectifications, you may not be authorised to make them. What documents do I need to buy a plot of land? Habitation licence, if applicable; Building licence, if applicable; Licensing project, if part of a subdivision; Municipal Masterplan; Land registry; Land registry certificate; Municipal Fees Regulations for urban development activities and operations related to the municipality. If you have these documents together, youll have more security when you go ahead with the purchase of the land , as they are documents that can be requested at a later stage. What taxes will you pay? Although its a cheaper option, theres no escaping the taxes involved in buying a property. In the case of a plot of land, these are as follows: Municipal building taxes; Urbanisation fees and urbanisation compensation fees; Municipal transfer tax (IMT); Municipal Property Tax (IMI); Additional IMI (AIMI). Are you ready to move forward? Check out the unmissable opportunities available for sale at SUPERCASA! Land in Torres Vedras, 85.000€ Land in Alcobaça, Leiria, 110.000€ Plot in Vila Nova de Gaia, Porto, 125.000€ Building plot in Portimão, Algarve, 179.000€
Source: Freepik Author: Redaction This Monday, 1 April, the IRS tax return for income earned in 2023 began to be submitted on the Finance Portal. The calculation is made on the basis of withholding tax, taking into account the income that is subject to this tax, and the deductions have changed as a result of the State Budget law for 2023, by updating the taxable income brackets. As a result, the annual accounts of individual taxpayers will be adjusted, which may or may not result in a reduction in the refund , applied to salaries from employment and pensions. According to the Ministry of Finance, the average time taken for a refund last year was 19.5 days and 16 days for the automatic IRS , with the refund being paid more quickly once the tax return has been submitted, although it is advised not to submit it in the first few days. The ideal is to avoid the first and last days of the deadline, as corrections may have to be made. National Association of Accountants warns that haste is a bad counsellor The deadline for submitting the IRS tax return isnt until 30 June and, with taxpayers having to spend three months submitting the return on the Finance Portal, i ts advisable not to rush to submit it in the first few days, as there may be corrections or system errors and failures that could compromise its correct validation. The National Association of Accountants (ANC) warns that haste is a bad counsellor, so taxpayers should instead make sure they have all the information they need to fill in the declaration properly . And they add: sometimes there are things that dont pay tax, but that need to be declared, emphasises Vítor Vicente, President of the ANC. Therefore, to avoid these constraints, taxpayers should check that the data on automatic expenses, health, education, uploaded to the system throughout the year and then validated or not, is correct . If they arent, they can still be validated, but not automatically, and all the amounts will have to be uploaded one by one. The ANCs advice is that its best to let a few days pass , and only then start the process: sometimes, in some income categories, everything isnt right from the start. If you wait a few days, you wont lose anything. Other current news: National public debt fell again in February , Rental market in Portugal grows by 4.5% and Social tariff for natural gas: 3.1% discount to be maintained
Source: Freepik Author: Redaction If you have not done so, know that you have until next Sunday to donate 0.5% of your IRS collection to an entity of your choice , such as kindergartens, victim support associations, social institutions, volunteer firefighters or homes. The list, which can be consulted on the website of the Tax and Customs Authority, includes 5,037 entities. This IRS consignment takes place every year before the filing of the declaration, which begins as of next Monday, April 1, without any impact on its reimbursement. So, if you are thinking of donating this portion of your IRS, you only have to point out the NIF of the entity to which you want to make the consignment, fill out your IRS declaration 2024 in the Finance Portal and select the option Consignment of 0.5% IRS , selected, then the type of beneficiary entity and the NIF of the entity. Then, just select the IRS option. You can also pay VAT by selecting the IRS option, however, this already impacts your refund. What is the 0.5% IRS consignment? This is a mechanism that aims to help and support entities with an active and relevant role in the community in which they operate . Through this consignment, they can obtain funding for their actions, with the money donated to be removed from the tax due to the State, without any impact to the taxpayer. The consignment of VAT, on the other hand, already implies that the taxpayer abdicates part of his refund , which would eventually be paid by the tax authorities. It is important to note that this consignment should be made until March 31 for taxpayers who are covered by the automatic IRS and who wish to change or add the consignment to an entity of their choice, because if they do not do so, the provisional declaration developed by the Tax Authorities becomes definitive. And remember: the delivery of the IRS statement starts already on April 1, next Monday, having until June 30 to make the submission. The IRS refund will be paid by the State until the end of July. Keep abreast: Natural Gas Social Tariff: 3.1% discount will remain , Public Administrations achieved positive balance in 2023 and Change of time occurs next Easter Sunday
Source: Freepik Author: Redaction The formalization of the business is the most awaited moment by a seller, especially if it has been a long process to get here. To achieve a higher success rate, you should be accompanied by a real estate agency to guide you through all the bureaucracies and processes until you reach the formalization of the sale , at which stage you should proceed, with your potential buyer, for the signing of a contract-promise purchase and sale (CPCV), and establish all terms and conditions in a clear and legally binding manner. But before going into this topic, SUPERCASA Notícias gathered a set of information that may have relevance for you, the owner, who, without knowledge about this type of business, needs guidance on how to formalize the sales process. Did you know that there are services provided by the Government and legal entities to simplify the sale of the property? Discover them. 1. Home Ready Service Provided by the Ministry of Justice, the Casa Pronta service helps to formalize and treat all procedures related to the purchase, sale or donation of a house. Thus, through this service, you can handle all the bureaucracies associated with the sale, from the contract to the settlement of stamp duty, whether or not the buyer uses a home loan. 2. Simple House, Safe House Provided by notaries, this is a personalized, qualified service that aims to help with the processes and acts related to the purchase and sale of real estate, helping with the bureaucracy associated with the legal part of the transaction, namely through the signing of the deed, in the application for IMI exemption, registration, licences and other documents. In practice, when you purchase this service, you will have a notary take care of everything for you, facilitating all legal procedures. However, and because it is always simpler to use a real estate agency to mediate the sale, know exactly how the processes develop in this situation. Property reservation This is the first indication given to the owner and/ or real estate agency that is mediating the process that a potential buyer is interested in moving forward with the business. At this stage, there is an interest in booking the property, with an agreement with should be made in writing and that implies the payment of a sum in cash. When formalizing this desire, as soon as the amount requested for the reservation is paid, the owner or the real estate must remove the property from the market. The amount to be paid can eventually be considered in part of the final amount to be paid to the amount that is paid , or debited when the Purchase and Sale Promise Agreement is concluded, however, if the deal does not come to fruition, it is common to have the amount returned to the potential buyer. It is important to note, in this sense, that the reservation contract has a short validity, and that it can go up to only 48 hours. However, if there is an agreement between both parties, its term may be extended. It is extremely important that all these procedures are written in a document safeguarding the rights and duties of both parties. And remember: a reservation contract does not produce the same effects as a purchase and sale Promise Contract . Contract promise purchase and sale It was not mentioned above, but we warn that the reservation of the property is optional , not being one of the mandatory steps to follow. In fact, a potential buyer can immediately jump to the conclusion of the Purchase and Sale Promise Contract, if he so wishes, and there is also a mutual agreement between buyer and seller. The contract-promise purchase and sale is optional, however, when concluded, implies the legal fulfillment of the clauses established, committing the potential buyer to the seller of the property in order to ensure compliance with the duties established until the day of the deed of the property. Before concluding the purchase and sale promise contract, it is important that you define the clauses covered , as they will define the agreements with the potential buyer. Which points should be included in the CPCV? 1. Whether or not there is a housing permit. In situations where this document does not exist, it must be requested from the City Council to be able to proceed with the conclusion of the contract-promise purchase and sale, since it is a mandatory document and essential for the realization of the deed. Thus, if you are still waiting for it, the information should be included in the contract. 2. Amount of the deposit paid by the buyer. The law does not stipulate a value for this purpose, and the sign can correspond to 10% or 20% of the value of the good to be sold, in most cases. However, for the buyer, it is important that this percentage is well reflected in the CPCV, as it will have an impact on the financing requested to the bank for the purchase of the property, and proof of payment must be issued after payment. 3. Date of writing. A limit may be set for the signing of the deed, with the agreement of a margin of security for its realization, in case of unforeseen events. All this should be reflected in the CPCV in order to safeguard the parties involved, as well as the sanctions to be applied in the event of non-compliance. The extension of the term of the deed can also be stipulated if there is a paragraph for this purpose, with the agreement of the parties, and the general rules of the Civil Code apply if sanctions for non-compliance are not stipulated. 4. Annulment of the CPCV if the potential buyer’s home loan is refused. This clause can safeguard both parties in a situation where, if there is no confirmation of financing for the purchase of the property, the deal may fall. Although a buyer must have a pre-approved credit, there may be details that may call into question the final approval of the credit, so to protect the parties, this is a clause that should be included. 5. Possibility of cancellation of the CPCV. This is a clause intended to safeguard the parties in the event of a cancellation of the contract. This is a point that defines the situations in which the cancellation of the contract may arise and the maximum period for this purpose, stipulating sanctions to the party not in compliance. In addition to these paragraphs, a purchase and sale promissory contract shall comprise: • The identification of the buyer and seller - with name, address, marital status, NIF and citizen card number • Property data - with their location, typology, property description and other parts of the property • Maximum period for the realization of the deed • Sale value and payment method • Amount of the signal paid • License to use or build Completion of the sale: deed of the property After the agreements between buyer and seller, through the signature of the CPCV, the next phase is the deed of the property, being met all the conditions for the sale of the house. The deed will legitimize and legalize the contract of sale. And only after signing this document can the buyer receive the key to the dwelling, becoming the current owner. 1st phase of writing: signature of the CPCV At this first moment, the purchase and sale promise contract is signed, in which the transaction is legally formalized. 2nd stage of the deed: mutual contract with mortgage In a second moment, if the buyer has used a home loan, it is necessary to conclude the mutual contract with the mortgage , in which the financing conditions are stipulated. It is only after the conclusion of this contract that the bank can release the amount necessary to pay the missing amount of the seller. The buyer will have at this stage several expenses at his expense, namely transaction taxes (IMT), stamp duty and notary registration expenses, however, your goal has been achieved: he sold his house! It is free of obligations and can decide at this stage what to do with the sale value. And if you want more information about the phase after the sale, we advise you to read What are the assets of the property? Know all
Source: Freepik Author: Redaction Youre getting closer to the final goal: formalising the deal to sell your house. At this stage, the first thing you need to do is get all the necessary documents in order, including deeds, energy certificates, building licences and any other relevant paperwork. By organising these papers, even before the deal is formalised and the promissory contract signed, youll save time when the time comes to go ahead with the deal. This proactivity should come from you, regardless of whether or not you are being accompanied by a real estate agency. However, it is most likely that, while the publicity processes and visits to the property are taking place, the agency accompanying you will ask you to start gathering this essential documentation. But lets break it down. Do you have an interested party for your property? Well tell you what to do from here! Discuss the sale price of the house Youll need to start negotiating as soon as someone expresses an interest in the house youre selling. From the outset, and if youve followed all the steps weve explained to you in previous articles, namely Valuing the property when selling: how and why , you should have already set a final value for the sale , however, and because many buyers like to haggle, this can be a changeable figure. Even so, you shouldnt lower or raise the price just because you have to . In negotiations, you should always set a reasonable minimum target that you cant go below, and negotiate according to this. Once youve agreed on the price, make sure you have all the documents well talk about below so that you can finally proceed with formalising the deal. What documents you need to have in order to proceed with the sale If youre not familiar with the bureaucracy associated with selling a house or know little about the property market and how these procedures work, all you need to know is that, in order to go ahead with the sale, you must have in your possession a series of important documents, required by law during the sale process, to formalise the sale: - Up-to-date permanent land certificate - Caderneta predial urbana - Licence to use - Technical data sheet for the property - Energy certificate - Property description - Building plans - Deed of sale - Citizens card Well explain what each of these documents is about. Updated permanent land certificate You can obtain this document from the Land Registry Office , which basically allows you to c onsult the entire history of the property - with information about construction, inheritance or possible associated liens. Caderneta predial urbana In this document, youll have access to all the information about the property from a fiscal point of view , namely the owner of the property and its tax value, as well as its location and characteristics. This will be one of the most important documents for formalising the deal through the promissory contract of sale. Using the urban land registry you can calculate the Municipal Property Tax (IMI) and the Property Transfer Tax (IMT), so its essential to keep it up to date. Licence to use The purpose of this document is to prove that the property has been previously inspected and is in full compliance with the work carried out, projects approved by the competent authorities and the legal regulations in force , as well as to prove the suitability of the building or autonomous fraction for the intended purpose. Property technical sheet This technical sheet will give you information on the technical and functional characteristics of an urban building for residential purposes , once the construction or reconstruction work has been completed. It can be requested from the National Civil Engineering Laboratory and the Directorate-General for the Consumer, and the requirement for obtaining it is that the buildings have been built or have undergone extension, construction or reconstruction work after 30 March 2004. Energy Certificate This is a document where you can find not only an assessment of the propertys energy efficiency, on a scale from very inefficient (F) to very efficient (A+), but also information on the propertys characteristics , such as insulation, types of ventilation, air conditioning and hot water production, and their effect on energy consumption. It also includes improvement measures that suggest ways to lower energy consumption and an indication of the tax benefits and types of financing available. Property description You only need to present this document if there is a mortgage associated with the property , which is presented at the time of the public deed when the property is transferred, as it proves the cancellation of the mortgage associated with the house you are trading . It is a document issued by the bank. Property plans These drawings of the property describe its constitution, in terms of rooms, available spaces and other elements that can help with the sale of the property, as they will give you a complete view of the house and its areas . You should have this document in your possession, as i t may be requested by the bank from the property buyer when applying for a home loan, or by the buyer themselves when making their decision. Deed of sale This document is mandatory in order to proceed with the sale of a property, as it verifies the conditions of the previous transaction. Once these documents have been gathered, you will move on to the crucial stage of the process of selling the house, which is formalising the deal. You can find out all about this in the next SUPERCASA Notícias article!
Source: Freepik Author: Redaction Moving forward with works at home requires, from the outset, a good available budget and some patience , and it can be a complex process and with some associated concern, since unforeseen events can always appear that force you to spend more money. However, you do not need to be apprehensive, because there are tax benefits for certain properties that are subject to rehabilitation , and which we are making known today. If you are reading this article because you are selling your home and would like to improve it in order to increase its sale value and attract potential buyers , we suggest reading the article 4 essential valuation strategies in selling a house . And if you are in fact planning to move forward with works or renovations , you will find here all the necessary information about the expenses you can count on, charges and possible tax benefits. Get to know it! What is the first step before the work? Before hiring a team or construction company, we advise you to ask for different budgets . This is step number one when it comes to contractors, whether in your home or any other building that needs interventions. Any person responsible for the property, should start by asking for different budgets, contacting different professionals, and ask them for a complete evaluation of the specifications: how long the work will take, how much it will cost, what materials will be needed and what is the feasibility of the intervention. Based on the various scenarios, when analyzing the proposed budgets, you will have an initial perception of how much money you should have available for the renovations you want to perform in your home, preparing also for potential unforeseen and acquiring knowledge of the prices that are practiced in the market, for a better decision about which company is ideal to perform the work . It is important that you only consider budgets that already include VAT, because without this tax the value will be higher in the end, and may surprise you at the time of payment. When considering VAT, you get a real sense of the final value, being able to make adjustments to the materials contemplated according to the limit you have in your budget. A few points to remember: • You should not accept a budget just because yes , however, if you exceed the deadline that determines the period in which the conditions presented to you are valid, there may be changes and adjustments that were not contemplated. • To formalize the acceptance of the service ask for a written agreement to safeguard your rights - you can, in this case, sign the budget document, asking for the signature of the entity that will do the works, and this officialization makes the document a contract. • After all completed - contract, payment - an invoice must be issued . What fees are associated with construction costs? It is normal that the rates vary according to the type of goods or services provided, however, the Value Added Tax will be one of the taxes that will always have contemplated, varying its value. • In the case of a labour service, the 6% VAT rate will be applied; • Building materials are covered by a standard VAT rate of 23% (excluding value less than or equal to 20% of the total cost of the work; • For other complementary services, namely cleaning, maintenance of green spaces or other maintenance, the applicable VAT rate is 23%. It is most likely that different VAT rates appear on your invoice, and products and/or services in this situation should be identified separately. Note that the invoice must include the identification of the company providing the service , the identification of the customer , the detail of the goods and services invoiced, the dates on which the goods and/or services were delivered and the dates on which the payments were made, prior to the completion of the operations, if the date is not the same as the issue of the tax document. Know the tax benefits associated with the remodeling of a property Probably did not know, but the truth is that the rehabilitation of real estate can be associated with several tax benefits , namely through the reduction or exemption of VAT, IMI, IMT and IRS, generally applicable to properties located in Urban Rehabilitation Areas (ARU). With each benefit, there are criteria that we explain: VAT The lowest tax rate, of 6%, can be applied, according to the VAT Code, to contracts in real estate located in areas classified as ARU and to contracts carried out in real estate related to housing. IMI In the case of the Municipal Real Estate Tax, the exemption can last up to 3 years , in the event that the property targeted for rehabilitation is older than 30 years or is located in ARU, being exempt from paying the tax. IMT As with IMI, with the Municipal Property Transfer Tax you can also benefit from an exemption, in this case, if you buy a property with more than 30 years or that is located in an ARU, provided that it initiates rehabilitation works within 3 years from the date of purchase and, in case the property is already rehabilitated, is intended for the owner’s own and permanent housing, or even rented for this purpose. In the case of IMI and IMT, the benefits are still conditioned by the levels of conservation status, which must be improved, as well as a positive assessment and good requirements for energy efficiency and thermal quality. IRS In the IRS, there are some benefits associated, and in the case of the charges for the rehabilitation of real estate there may be a tax discount that reduces up to 30% of the expenses , up to the limit of € 500 if the property is located in an ARU and is recovered under the rehabilitation strategy - these are deductions applicable not only to works for own and permanent housing , but also to properties for rent. Then, in addition to the discount, you can deduct the expenses paid for maintenance and rehabilitation works in the properties for rent in Annex F of the IRS declaration, which concerns real estate income, provided that they are carried out up to 2 years before the start of the contract. Finally, associated with the IRS, it can obtain benefits generated by capital gains, provided that the property has been sold after the rehabilitation works, if it is located in an ARU and has an autonomous tax rate of 5%. In this specific case, the condition to receive this benefit is that the works have left the property in a state of conservation up to at least 2 levels above what was verified before the intervention, as well as a level of conservation, at least, Good. Are you ready to move forward with the redevelopment now that you know all the associated benefits, charges and taxes?
Source: Freepik Author: Redaction Announced at the same time as the rent brake applied in 2023, the compensation to landlords who did not change the value of rents in 2023 serves to mitigate the effects of the rise in inflation recorded so far , in practice being a discount on the value of income taxed in the IRS. This compensation mechanism can be used by owners who, by the rent brake standard implemented in 2023, have limited the update to 2% . This is compensation automatically applied by the Tax Authority (AT). In the case of a monthly rent of 500€ in a lease for a period of one year, renewable, the landlord could have increased to a maximum of 510€ in 2023, to instead of paying IRS on the amount of 6,120€, be taxed at 5,569.20€. However, it also applies to landlords who did not move the rent amounts, and in this example, the IRS will focus on € 5,460 instead of the previous € 6,000. These examples include gross values and do not include expenses that are to be deducted, such as rates, condominium charges, taxes such as IMI or works expenses in the rented fraction, to which the official source of the AT indicates: landlords who in 2023 did not make any increase in income benefit from the support coefficient provided that the other conditions are met. They add: the application of this coefficient is carried out by the TA automatically, based on the declaration in model 3 of 2023, in Annex F, Squares 4.1, 4.2, 4.3 and 5 (depending on the type of contract in question), as to whether the rents were or not, with a coefficient equal to or less than 1,02 . What are the conditions required to benefit from the compensation scheme? As stipulated, in order to benefit from the compensation mechanism, the rents due in 2023 in question must be paid and result from lease agreements in force before 1 January 2022 , duly communicated to the TA, and whose updating has not resulted in a value higher than the 2% limit stipulated by the Government. Calculated by the AT, this compensation should be calculated at the time of filing the IRS statement regarding last year’s income, which begins on April 1 and ends on June 30. Read also: IRS: learn how to deduct rental expenses , Salary cap for access to affordable rental increases and Security deposit is not considered taxable income at source of IRS
Source: Freepik Author: Redaction Whether youre buying or selling, the energy certificate is one of the documents youll always have to take into account if youre thinking of selling a property. Its intrinsically linked to the propertys energy performance and is a fundamental document in any transaction. The presentation of this certificate is, in fact, mandatory by law , so today, in this SUPERCASA Notícias article, we explain exactly everything you need to know, how the Energy Certification Systems (SCE) work, when you should present the necessary documents, the types of assessment and their advantages , as well as what can happen if you default. What are the legal obligations for property owners and real estate agents? As stipulated by Decree-Law 118/2013 of 20 August, all owners of a property are obliged to comply with the specific obligations of indicating the energy rating, and they are also responsible for indicating the propertys rating and respective documentation to real estate agents. They are also responsible for providing a copy, or the original, of the Energy Certificate in situations where they enter into - a promissory contract for the purchase and sale of the property; - rental agreement. Failure to fulfil these obligations is subject to monetary fines. On the part of estate agents and consultants, they must include information about the energy class of the property in their sales or rental adverts in order to avoid considerable fines and poor quality adverts. What is the Energy Certification System for Buildings (SCE)? This is an instrument with European Union legislative guidelines, implemented in Portugal, which plays a fundamental role in enhancing energy efficiency and promoting sustainable energy in buildings. It establishes a link between the energy efficiency policies defined by European regulations, market agents and buyers/owners. Thus, included in the SCE is the Energy Certificate, a document that, as its name explains, assesses the energy efficiency of the building, certifying it with a rating that can vary between A+, A, B, B-, C, D, E and F , from the highest to the lowest efficiency rating. How does Energy Certification work? Eligible in buildings or autonomous fractions under the SCE, energy certificates are required by law in all buildings, new or old, whenever they are put up for sale or on the rental market , but also in buildings that are undergoing rehabilitation or interventions, and whose value is greater than 25 per cent. According to ADENE - Agência para a Energia (Energy Agency) and its SCE Guide , any building that is a covered construction with walls and floors intended for human use must be covered by an energy certification, whether it is composed of one or several bodies, as is the case, for example, in schools, hospitals, tourist resorts, among others . In the energy certification document for a property, you will find: - an assessment of the propertys energy efficiency, on a scale from very inefficient (F) to very efficient (A+); - information on the propertys characteristics, such as insulation, types of ventilation, air conditioning and domestic hot water production, and their effect on energy consumption; - improvement measures that suggest ways to lower energy consumption and improve the comfort and health of the residents/inhabitants of the property; - indication of tax benefits and types of financing available, when available. The great advantage of this document is the immediate value it gives to the property , as you will have an analysis of the type of consumption, advantages and disadvantages of the property, indications of improvements and structural characteristics, which will make all the difference when selling or buying the house. But there are others. Advantages of the Energy Certificate As we said above, this is a document that will greatly enhance the value of your home, but its not the only advantage: - Through the certificate, you get to know the property much better , both structurally and in terms of the energy consumption it will have; - you know how you can reduce your energy consumption and expenditure in a permanent and efficient way; - knows exactly what the direct implications are for comfort and health , if any; - indicates personalised improvements according to energy performance, in order to reduce consumption; - you have access to financial and tax benefits, which well explain below. Financial and tax benefits of the Energy Certificate A house with a higher energy rating will be more competitive on the market than one with a lower rating . However, it is also an asset in financial and fiscal terms, allowing you to access better rates when implementing the improvement measures indicated in the document. The tax benefits with the most impact on your wallet will be a refund of the IMT (Municipal Property Transfer Tax) if you rehabilitate your home, for which you can get more information from your local council or town hall, but also a reduction in the municipal IMI (Municipal Property Tax) rate, which you can also find out about from your local council. Another of the great financial advantages of an energy certificate is the exemption from municipal taxes when an urban building undergoing urban regeneration is rehabilitated , as well as the exemption from the issuance fee when re-issuing a new Energy Certificate after the improvements have been implemented. What is assessed in an Energy Certificate, who carries out the assessment and where can you request it? The assessment is carried out and issued by independent Qualified Experts, who will assess the installation of double glazing, insulation reinforcements and the existence of efficient equipment, among other things. To request this assessment, you should ask for quotes from several qualified experts working in your neighbourhood or area of residence. It is important to ask several experts to find the one who will give you the best price and, once you have found the professional assessor, gather the necessary documents and provide access to all areas of the house during the assessment. In the end, ask for the preliminary version of the certificate and check the data on the document to make sure everything is correct before it is issued definitively. How much does an Energy Certificate cost? The amounts will vary depending on whether it is a residential building or a building for commerce and services, and the cost of issuing the certificate will always be associated with two variants: 1. Qualified Expert (QE) fees, which vary according to the complexity of the building, its condition and conservation, so there are no fixed figures for reference. 2. The value of registering the certificate on the SCE Portal, defined by government decree, and for which the following values are associated: Residential buildings - Studio and one-bedroom typologies - €28.00 - T2 and T3 typologies - 40,50€ - T4 and T4 typologies - 55,000€ - Types T6 and above - 65,00€ Commercial and service buildings - With a floor area equal to or less than 250m 2 - €135.00 - With a floor area of more than 250m 2 and less than or equal to 500m 2 - €350.00 - With a floor area of more than 500 m 2 and less than or equal to 5000 m 2 - €750.00 - With a useful floor area of more than 5000 m 2 - €950,000 You should bear in mind that energy certificates have an expiry date, which varies according to the type of certificate in question, but which you should consider in the following terms: - Pre-energy certificates: 10 years; - Energy certificates: 10 years; - GES energy certificates (large commercial and service buildings): 8 years; - First GES energy certificates for new buildings and major renovations: 3 years. There are also validity periods for the following criteria: - Energy certificates for GES that are in operation and do not have a Maintenance Plan: 1 year; - Energy certificates for commercial and service buildings that do not have the technical systems inspection report, when mandatory: 1 year; - Energy certificates for boarded-up buildings: 1 year (extendable on request to ADENE). Are you clear? Read also Turnkey homes: how does this concept work , Tips for remodelling your property without spending a lot of money
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