The “AT” (Tax Authority) has revealed plans to review the Location Coefficient (“CL”) of immovable properties by the end of August. The new localisation factor will be approved by the end of the year, coming into effect in January 2020. Finanças targets updates to the Ratable Value of real estate (“VPT”) at 85% of average property prices in each location.
With all political parties submitting their own proposals, the parliamentary calendar will only consider changes to the law governing of local lodging next year. The ruling Socialist Party wants to make permission dependent on the approval of neighbors in condominiums.
According to the 2017 State Budget, the Individual Income Tax (“IRS”) will undergo the following changes:
- Automatic IRS Declaration
The creation of the new automatic income tax return for taxpayers receiving exclusively Portuguese-based income will come into full effect on 01 January 2018. This computer-based reporting will be grounded on the relevant information that “AT” has on record to be made available to individual taxpayers on the Finance Portal: