Additional “IMI” assessment

Property Owners as well as the Tax Office may request an additional “IMI” (Municipal Property Tax) evaluation if there is disagreement over the original set values. However, any such challenge does not suspend the payment of the first evaluation.

Luxury properties to be taxed at a higher level

The Budget proposals for 2017 foresee that real estate owners with high-value properties (VPT of more than 500.000€) will face an additional tax next year.  The new levy will be progressive, to be accumulated with the regular IMI. It is hoped that the tax will provide an additional €100-€200 million to the state coffers.

Urban Renewal for Local Lodging in Funchal

A year ago, the Funchal Investor Desk and the “City with Life” Programmes started in Funchal. So far, 236 requests have been registered regarding the rehabilitation of “Zona Velha” buildings to create Local Lodgings, with trade and services on the ground floor.

Water tariff in Lagoa

The Lagoa Town Hall has announced that property owners running Local Lodging establishments outside of their own fiscal address will have to pay commercial water rates. In order to avoid the non-domestic tariff, owners must present their Tax Number (NIF) with the address being the same as the AL License address within 15 days after receipt of the notification.

Algarve tourism on track for record year

Algarve hotels have registered 7.4 million overnight stays in the first six months of the year, up 13.3% over the same period of 2015. Algarve Tourism stated that 2016 should be the best year ever. Through June, Faro airport recorded 3.1 million passengers, an increase of 18.6%

City Halls can request IMI re-evaluations

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.

IMI changes

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%.

Portugal ranked 5th safest country

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.

Lisbon Tourist Tax yielded €3.9 million in 5 months

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.

Iceland to restrict Local Lodging

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.

September 2016
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