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%
France and Portugal have agreed to alter the bilateral tax treaty between the two countries. The changes reflect the OECD recommendations regarding the exchange of fiscal information under the Common Reporting Standard.
For tax residents in Portugal with investments abroad, foreign tax authorities will gather information on balances and interest of all financial investments from local institutions and share the data with the Portuguese fiscal authorities (AT). For non-residents with bank accounts in Portugal, the equivalent information exchange will take place. In the case of the USA – a non-signatory to the CRS (Common Reporting Standard) – reporting will only take place on amounts in excess of €50,000.
Property purchased a decade or two ago is often liable to a substantial Capital Gains Tax at today’s market prices. There are numerous reasons for this trend. First and foremost is the obvious fact that property prices have risen far ahead of inflation over the years. In addition Continue reading
Portuguese law views a trust as a contract. All transactions involving trusts are deemed to be made with the trustees – the legal owners of the trust’s assets – rather than with the beneficiaries entitled under the terms of the trust. Beneficial interest is not a right formally recognised under Portuguese legislation. Let’s examine some common questions regarding the taxation of trusts in Portugal. Continue reading
Another change in IMI evaluations comes with the possibility of municipalities to solicit a re-evaluation for IMI purposes. This procedure was previously only open to owners. IMI is a municipal tax collected by the AT (Tax Authorities), based on 0.3% – .45% of the rateable value of real property.
The view as well as the solar exposure now have more weight in the formula that calculates the property value and the IMI (property rates) to pay. These factors 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%.
Citizens can now request their criminal record online. This is one of the essential documents for foreigners who are seeking Portuguese citizenship. The measure is one of many of the current Simplex program measures being put in place.
Amongst confusion in the interpretation of the law governing the collection of property tax in UNESCO classified world heritage areas, the Minister of Finance bucked positions taken by previous governments and the courts by now demanding that property owners must pay IMI.