# Annual Council Tax



## Stellen

Can someone please let me know how this tax is calculated? Does it depend on building area, land area, age of property, value of property, location of property, number of people in the household.......? 

We are presently looking to buy a second home for about Euros 200,000 near Caldas.

Thanks.


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## PETERFC

*Reply*



Stellen said:


> Can someone please let me know how this tax is calculated? Does it depend on building area, land area, age of property, value of property, location of property, number of people in the household.......?
> 
> We are presently looking to buy a second home for about Euros 200,000 near Caldas.
> 
> Thanks.


Hi Stellen

The information below is from Derek the Mod. If you go to the section Tips for home buyers, then go to the last page and just go down the screen

Peterfc soon to be No6afreeman " 9th June Decree Absolute ":clap2:

Property Purchase Taxes in Portugal

When buying a property in Portugal you have to pay purchase taxes for properties over 90,418€. These are calculated on a per cent basis, which are on a sliding scale relating to the value of the property you wish to purchase. These rates are usually amended each year inline with inflation and although new rates and a new system was introduced in April 2010, these proved too complex to calculate. Therefore amended rates with precise deductions have been now calculated (May 2010).



Resale properties - including ruins, land, old houses - are subject to Imposto Municipal Sobre as Transmissões (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.



If the property is your sole residence then the taxes are levied as follows:

Primary Residence
under 90,418€ 0%
90,418€ - 123,682€ 2% minus 1,808.36€
123,682€ - 168,638€ 5% minus 5,518.82€
168,638€ - 281,030€ 7% minus 8,891.58€
281,030€ - 561,960€ 8% minus 11,701.88€
Over 561,960€ 6%
If the property you are purchasing is a second property such as a holiday home then the taxes are calculated as follows:
Second (Holiday) Home
under 90,418€ 1%
90,418€ - 123,682€ 2% minus 904.18€
123,682€ - 168,638€ 5% minus 4,614.64€
168,638€ - 281,030€ 7% minus 7,987.40€
281,030€ - 538,978€ 8% minus 10,797.70€
Over 538,978€ = 6%
Agricultural (rustico) is charged at the flat rate of 5%, whereas Urban land (urbano) is charged at a rate of 6%.

If you are unsure how much the IVA or IMT will be, it is advisable to check with the local Finanças before you enter into a Promessa Contract.

*The above figures were current as of May 2010.
Info courtesy of Gekkoportugal
__________________


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## siobhanwf

Stellen said:


> Can someone please let me know how this tax is calculated? Does it depend on building area, land area, age of property, value of property, location of property, number of people in the household.......?
> 
> We are presently looking to buy a second home for about Euros 200,000 near Caldas.
> 
> Thanks.


Hi Stellen

Do you mean the property purchase tax or the annual taxes paid on your property to the local camara (council)?


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## Stellen

Sorry if it wasn't clear. I mean the annual tax paid to the municipality.


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## PETERFC

*Reply*



Stellen said:


> Sorry if it wasn't clear. I mean the annual tax paid to the municipality.


HI Stellen 

Sorry to have replied incorrectly i missed reread the information i posted in my reply. 

Peterfc soon to be No6afreeman " 9th June Decree Absolute "


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## niner_mike

Annual property tax (IMI) is based on a valuation that is derived from factors which include the number of rooms and nº of square metres that are designated for each purpose - ie 100 square metres of living area will be taxed more highly than 100 square metres of garage for example. Nº of persons in the household doesn´t come into it, nor does the real market value of the house. I think the tax does vary with location but is subject to a very strict minimum/maximum.

If you are purchasing a house for €200,000 I´d guess your council tax is likely to be in the region of 500 - 600 euros Theres an online calculator for this somewhere but I´d leave it leave it to your lawyer or solicitor to make the calc based on the plans of the house.


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## Stellen

Thanks for the clear info. 

We are not yet at the stage of signing and I just wanted an approximate figure for our budgeting. Of course the solicitor and the estate agent will be able to give us more information nearer the time.


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## omostra06

it may well vary dramaticly from council to council, a property with a value of 200,000 euros here (near Tomar) should cost around 120 euros per year. (which you can pay in two instalments)
if you plan to spend most of your time here in Portugal, you will get excemption from paying this tax.


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## stephanie

Hi Stellen,

As the other replies indicate working out the cost of IMI in Portugal is not a straight forward business. It is basically an annual sum based on the council's valuation of your property (significantly lower than the purchase price) and could be anything from 0.4% - 0.8%.

So the figures suggested by Niner Mike look pretty realistic.

Don't forget to apply for the exemption if you are planning to live here as it is definitely worth while.

Good luck!

Stephanie


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## niner_mike

My own guestimate was based only on paying €240 odd for a €100,000 apartment near Caldas, though I´m quite wrong on one thing - the age of the building apparently does seem to count;

"The age of building coefficient (cv) varies according to the full number of years
elapsed since the date of issuance of the occupation licence, if any, or the date of conclusion
of the edification works, according to the following schedule:
YEARS AGE OF BUILDING
COEFFICIENT
Less than 2 1
2% to 8% 0.90
9 to 15 0.85
16 to 25 0.80
26 to 40 0.75
41 to 50 0.65
51 to 60 0.55
Over 60 0.40
The above-mentioned rules shall apply to the enlarged immovable property depending
on each part’s age respectively."

tbh, I still don´t really understand the calculation completely despite getting curious and looking into it. 

Seems like exemptions are up to 8 years if the value is <=157,000, and until 4 years if the value is up to 236,000

Omostra, is an IMI bill near Tomar of €120 really payable in two goes? Either my fiscal rep is being less than honest or anything less than €250 must be paid fully in one April instalment?


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## siobhanwf

niner_mike said:


> My own guestimate was based only on paying €240 odd for a €100,000 apartment near Caldas, though I´m quite wrong on one thing - the age of the building apparently does seem to count;
> 
> "The age of building coefficient (cv) varies according to the full number of years
> elapsed since the date of issuance of the occupation licence, if any, or the date of conclusion
> of the edification works, according to the following schedule:
> YEARS AGE OF BUILDING
> COEFFICIENT
> Less than 2 1
> 2% to 8% 0.90
> 9 to 15 0.85
> 16 to 25 0.80
> 26 to 40 0.75
> 41 to 50 0.65
> 51 to 60 0.55
> Over 60 0.40
> The above-mentioned rules shall apply to the enlarged immovable property depending
> on each part’s age respectively."
> 
> tbh, I still don´t really understand the calculation completely despite getting curious and looking into it.
> 
> Seems like exemptions are up to 8 years if the value is <=157,000, and until 4 years if the value is up to 236,000
> 
> Omostra, is an IMI bill near Tomar of €120 really payable in two goes? Either my fiscal rep is being less than honest or anything less than €250 must be paid fully in one April instalment?



When we received notification it was payable in two parts. Then they realised we were covered by the exemption as we lived here permenently....three years gone..five more to go :clap2::clap2:


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