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SISA Tax
Sisa tax
Correct! Sisa is being replaced but only in 2004. However to prevent a "lull" in the construction and resale property market it will be reduced to 6% as from May this year.
Tomorrow when I get to my desk I can post a comprehensive reply if the Webmaster is willing!
Tomorrow when I get to my desk I can post a comprehensive reply if the Webmaster is willing!
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Steen Jakobsen
- Site Admin
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- Joined: Tue Dec 10, 2002 4:15 pm
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information is what it is all about!I also understand that they are changing the rules that govern inheritance of property between husband and wife to make this free of tax. If this is the case, and SISA is reduced to 6%, then with the increased taxes charged to offshore companies the benefits of offshore ownership are now starting to look questionable.
Anyone got any more informed opinion?
Graham
Anyone got any more informed opinion?
Graham
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Kidson
Re: Sisa tax
-------------------------------------------biffa wrote:Correct! Sisa is being replaced but only in 2004. However to prevent a "lull" in the construction and resale property market it will be reduced to 6% as from May this year.
Tomorrow when I get to my desk I can post a comprehensive reply if the Webmaster is willing!
This is merely to act as a gentle reminder that we are awaiting details of the comprehensive reply which you mentioned would be provided today.
Please do enlighten us.
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Guest
I'm sure we will get a reply to this subject but if you own a villa or thinking about it, speak to a accountant who may be up on it or not. Me thinks not on the basis that the government have not released "precisley" how it's going to work. The May bit is intrim and installed as to not to prevent current and future sales between now and December.
Sisa
Steen, I e.mailed report to you earlier today. Have you not got it?
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Steen Jakobsen
- Site Admin
- Posts: 800
- Joined: Tue Dec 10, 2002 4:15 pm
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I did - Thanks! I'll make a proper page ASAP, here is the text meanwhile;
PORTUGUESE PROPERTY TAX REFORMS
Shortly after their election in January 2002, the Portuguese government promised to reform the existing tax system relating to properties. Sisa Tax, in particular, has been the subject of much tax evasion in the past and successive governments have been seeking a way to make buyers more accountable on acquisition.
On 6 April 2003 new proposals were announced which will affect the following taxes:
Sisa Property transfer tax.
Contribuição Autarquica Municipal Tax or “Rates”
Imposto de Doações e Sucessões Gift and Inheritance tax.
The aim of the Government is to broaden the tax base making more taxpayers accountable but reducing the burden generally.
The proposals are as follows:
Sisa Tax and Contribuição Autarquica will be completely revised and will be replaced by Imposto Municipal sobre as Transmissões “IMT” and Imposto Municipal sobre Imóveis “IMI” respectively.
Imposto de Doações e Sucessões is to be abolished provided that the estate is left in favour of surviving partners, children and parents. A residual 2 percent stamp duty will continue to be assessed on gifts and inheritances to beneficiaries who are neither a spouse nor a next of kin.
IMT will be on a sliding scale having a maximum rate of 6% for transfers above Euros 500,000 with those below Euros 80,000 being free of transfer tax. It does seem however that there may be one percentage point extra charged in cases where a property is for use as a “second home” or for rental purposes. Due to fears that this proposed change would lead to a temporary paralysis of the construction and real estate resale market whilst prospective purchasers waited for the new law to become effective, an interim reduction of the top rate of sisa tax from 10% to 6% effective in May 2003 has been announced.
IMI will be based on values closer to the market value of the property than at present and calculated by the tax department using the following criteria:
Building cost
The size
Location
Quality and comfort
The age of the property
For new properties the tax rate charged will be between 0, 2 and 0, 5%. For remaining properties the tax will be levied will be between 0, 4 and 0, 8%. The government intends to lower the tax payable for properties built after the second half of the 1980’s, whilst older properties will see a moderate and gradual increase.
It seems obvious that the value of all real estate in Portugal will have to be reassessed and estimates suggest this may take up to 15 years to carry out, although the aim is to have this completed within 5.
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.
PORTUGUESE PROPERTY TAX REFORMS
Shortly after their election in January 2002, the Portuguese government promised to reform the existing tax system relating to properties. Sisa Tax, in particular, has been the subject of much tax evasion in the past and successive governments have been seeking a way to make buyers more accountable on acquisition.
On 6 April 2003 new proposals were announced which will affect the following taxes:
Sisa Property transfer tax.
Contribuição Autarquica Municipal Tax or “Rates”
Imposto de Doações e Sucessões Gift and Inheritance tax.
The aim of the Government is to broaden the tax base making more taxpayers accountable but reducing the burden generally.
The proposals are as follows:
Sisa Tax and Contribuição Autarquica will be completely revised and will be replaced by Imposto Municipal sobre as Transmissões “IMT” and Imposto Municipal sobre Imóveis “IMI” respectively.
Imposto de Doações e Sucessões is to be abolished provided that the estate is left in favour of surviving partners, children and parents. A residual 2 percent stamp duty will continue to be assessed on gifts and inheritances to beneficiaries who are neither a spouse nor a next of kin.
IMT will be on a sliding scale having a maximum rate of 6% for transfers above Euros 500,000 with those below Euros 80,000 being free of transfer tax. It does seem however that there may be one percentage point extra charged in cases where a property is for use as a “second home” or for rental purposes. Due to fears that this proposed change would lead to a temporary paralysis of the construction and real estate resale market whilst prospective purchasers waited for the new law to become effective, an interim reduction of the top rate of sisa tax from 10% to 6% effective in May 2003 has been announced.
IMI will be based on values closer to the market value of the property than at present and calculated by the tax department using the following criteria:
Building cost
The size
Location
Quality and comfort
The age of the property
For new properties the tax rate charged will be between 0, 2 and 0, 5%. For remaining properties the tax will be levied will be between 0, 4 and 0, 8%. The government intends to lower the tax payable for properties built after the second half of the 1980’s, whilst older properties will see a moderate and gradual increase.
It seems obvious that the value of all real estate in Portugal will have to be reassessed and estimates suggest this may take up to 15 years to carry out, although the aim is to have this completed within 5.
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.
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Guest
SISA / Munipal tax
Any information like this is very welcome indeed on this site.
Offshore ownership is I think still viable - albeit marginally. With house values still rising and the revaluation project, anyone buying a 400 -500 K property already in a company will still save.
What is happening to this years munipal / rates? Have they sheved the plans to tax offshore owned properties at a much higher rate??
Thnak you for any information
Offshore ownership is I think still viable - albeit marginally. With house values still rising and the revaluation project, anyone buying a 400 -500 K property already in a company will still save.
What is happening to this years munipal / rates? Have they sheved the plans to tax offshore owned properties at a much higher rate??
Thnak you for any information
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Steen Jakobsen
- Site Admin
- Posts: 800
- Joined: Tue Dec 10, 2002 4:15 pm
- Contact:
We now have a new financial section;
www.carvoeiro.com/finance
may I suggest discussions continue in the Property owners forum;
http://www.carvoeiro.org/forum/1/viewforum.php?f=20
www.carvoeiro.com/finance
may I suggest discussions continue in the Property owners forum;
http://www.carvoeiro.org/forum/1/viewforum.php?f=20