The City Halls may now request IMI re-evaluations for tax purposes. Until now, this procedure was only open to property owners. IMI is a municipal tax collected by the AT (Tax Authorities), based on 0.3% – .45% of the rateable value of real property.
Solar exposure and the view are now being weighed more heavily in the determination of property values and the IMI (property rates). These two numbers now quadruple, going from 5% to 20%. On the other hand, the same factors, when considered for the reduction of property value, are worth 10%, a doubling compared to the prior coefficient which was in force at 5%.
Iceland, Denmark and Austria are the three safest countries in the world according to the Global Peace Index 2016 (GPI). Of 163 countries, Portugal ranked fifth, ahead of Spain (25), France (46) and United Kingdom (47). Syria, South Sudan and Iraq are the least secure nations.
The Lisbon Municipal Tourist Tax that is applied to overnight stays earned 3.88 million euros for the City Council between January and May. According to the municipality, the seven million Euro estimate should be “clearly exceeded” by the end of the year.
In line with Berlin, Iceland wants to restrict tourist letting. New legislation is being introduced that will limit to 90 days per year the allowable offerings to holidaymakers. If this period is exceeded, a additional tax will be applied.
In the first half of this year, ASAE detected 41 Local Accommodation establishments operating illegally in Portugal. Of more than 500 Local Lodging inspections over the 6 month period, proceedings were raised against 30 unregistered operators.
According to the Secretary of State for Tourism, Ana Mendes Godinho, a partnership with the Airbnb platform is in the pipeline to end illegal rentals. It is the hope that such collaboration will greatly reduce Local Lodging tax evasion.
After cooperation with the hoteliers in the District, Vila Real de Santo António will start charging a Tourist Tax of 1€/person and night (with some exemptions and discounts) as of January 2017. The City Hall created a Strategic Tourist Tax Council, comprising City Hall representatives, hotels and real estate agents, which will oversee the management of the tax and its investment in tourism activities in the district.
It is said that the Tax Authorities will adapt the online invoicing system so that the Tourist Tax (exempt of all other taxes) may be invoiced within the Green Receipts.
In the first quarter of 2016, the French buyers surpassed the English and Chinese for the first time in the real estate purchases. This trend further consolidates the growth experienced in recent years. Overall, foreign investment represents 20% of property purchases in Portugal.
Recent Italian legislation has created a specific fiscal category called “income from non-professional economic sharing activity”, taxed at a flat rate of 10 percent up to €10,000 per year. Beyond this level, such earnings will be added to other sources of income taxed at marginal rates. This new economic category brings together 3 characteristics:
- Goods and services that are shared to generate value, such as rides or apartments, must be owned by the individual operator and not by a platform.
- Individual operators may not be employees of the company nor treated as such. For this reason the legislation states that the activity cannot be monitored by any type of software or device.
- Finally, rates cannot be imposed, but only suggested and ultimately left to the discretion of the operator offering the service.