and now its the turn for portuguese property companies

[Guest]

yes, just heard the news today that a relative whose house is owned by a portuguese company and has been taxed for might be termed "advanced corporoartion tax" at 50000 escudos per half year even though there has been no trading ...well this "tax" or daylight robbery is now to be increased to 600 euros plus per half year.

originally when this tax was set up, when accounts were filed the deal was to refund the money after one year....well the relative after 5 years had had one 50000 esc back....now the tax is to be increased as above

the accountant says the object is to drive all property out of companies into direct ownership....sounds familar ?

[biffa]

I regret that Portuguese companies are quite expensive animals to manage even without the "advance corporation tax". I think I am right in saying that this is now Euros1,250 per year paid in 2 parts.

If you rent out the villa then you should declare the income and set off allowable costs against tax and can then carry any losses forward. In those cicumstances the ACT is not so hurtful. Where it hurts most is when you don't let and can never get the tax back - at least I don't know anyone who has!.

[Guest]

corrrect it is 1250 euros a year...and having seent he accountant this morning it is just the same problems trying to get out of them...sisa and capital gains tax...well we worked out this morning it would cost about 23000 euros to put the house in a persons name.

so we have decided its cheaper to keep paying the local tax mafia their 1250 euros per year.

i do hope the 5% IMI tax wont be levied on this as well??????