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Monthly Archives: February 2016

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Property Transfer Tax

The Municipal Property Transfer Tax (“IMT”) which was scheduled for extinction in 2017 by the previous government will be maintained, according to the 2016 State Budget Proposal. The tax is currently the second largest source of revenue for local municipalities.

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Small businessmen and Annex SS

Independent entrepreneurs in the Simplex system must still submit a Social Security annex together with their IRS tax return. The disputed annex was created in the previous legislature, but it created confusion. The new government now promises to examine this reporting scheme in the coming months.

“Ecotaxa” on Madeira Island

The district of S. Cruz, Madeira, created an “Ecotaxa” on all tourist accommodation, including Local Lodging. The cost is 1 € per person per night (only for guests over the age of 18) and the maximum per person and stay is € 5.

The levy is supposed to be paid as of January 2016: The City Hall provides a form which is to be sent to them until the 10th of each following month. The Council then issues a payment order, and the property owners have 30 days to pay the amount.

The issue is being contested by the Chamber of Commerce and the big hotels in S. Cruz, they hold the levy to be unfair since it is not applicable to the whole island. The issue has gone to court.

Finanças investigates Local Lodging irregularities

Recent “AT” inspections of Local Lodging establishments detected 1,800 irregularities according to the Jornal de Notícias. These cases had discrepancies in declared income and will now be subject to increased monitoring by the tax authorities. This investigation of holiday lets focused on 12,000 taxpayers, with the majority (10,200) with no inconsistencies.

How to pay the new Municipal Tourist Tax in Lisbon

  1. Registration

The Owner/Operator must register on the “Lisbon Electronic Platform” (“Plataforma Eletrónica”) by 31 January 2016 at  https://tmturistica.cm-lisboa.pt/RegistoEntidade

  1. Form

The Owner/Operator will subsequently receive the Settlement Form (“Formulário de Autoliquidação”). This Form should be saved and reused in monthly reporting.

The Form should be completed and sent to the Lisbon Municipality by the 15th following the month reported.

  1. Cost

The fee is €1 per night per person up to a maximum of €7 per person (for 7 days or more).

  1. Payment

Within 2 days, the Owner/Operator will receive a “Multibanco” reference. Payment is due within 10 days.  If the Owner/Operator is registered for VAT and pays this tax on a trimester basis, he can opt to pay the Municipal Tourist Tax every 3 months rather than monthly.

  1. Exemptions

Children 13 years old and under are exempt from this fee. Medical Care: If visitors are in Lisbon for documented medical reasons, they can request exemption.

Note: In the future, when Lisbon Municipal Tourist Taxcoordinated with the “AT” Tax Authority, a reporting box should be created on the Electronic Green Receipts to account for this municipal tax on electronic declarations.

The introduction can be found here

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