The Portuguese government is creating a specific programme of €4.5m to encourage “AL” holiday lets to be transformed to affordable rents for young people. The purpose of the programme is open more affordable housing for urban youth that is accessible and with better conditions. The government also proposes to make available non repayable grants to subsidise the income of the most needy families who cannot cope with these rental expenses.
If you live in a foreign country or are travelling when tax payments become due, there are two ways to meet your tax obligations: 1) Direct Debit or 2) Bank Transfer. If you choose to use Direct Debit (Standing Order), you must first domicile the IBAN of the appropriate account with a bank located in a country of the Single Euro Payment Area (SEPA). The SEPA countries are the member states of the European Union, Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, Switzerland and the Vatican City State.
This foreign bank account must also be registered and confirmed by the Portuguese Tax Authority (Autoridade Tributária e Aduaneira). You must record the account on the Portal das Finanças and send the original of the Entitlement Certificate to the Directorate of Taxpayers Registration to the following address:
- Direção de Serviços de Registo de Contribuintes (DSRC)
- Avenida João XXI, N.º 76 – 6.º
- 1049-065 Lisboa, Portugal
Direct Debit payments do not incur any costs as opposed to international bank transfers that do. If you are paying via a bank transfer, provide your bank with the information below so that the bank can forward the essential information to the “AT”:
- TIN: 600 084 779
- Name of the creditor: Autoridade Tributária e Aduaneira
- Bank account number: 83 69 27
- IBAN: PT50 0781 0019 00000008369 27
- Bank name: Agência de Gestão da Tesouraria e da Dívida Pública – IGCP, E.P.E.
- Swift code: IGCPPTPL
- Your tax identification number (“NIF”) contained in the payment document
- Reference for payment: Each reference corresponds to a specific number for payment, which is set out in the document.
Please note: Each bank transfer requires its own documentation as opposed to Standing Orders that recur on a regular basis. The payment should be made at least 2 working days before the deadline.
Paying your Portuguese Property Tax (IMI)
To pay directly from your Portuguese bank account, follow these steps:
- Open and log onto your Portuguese bank account;
- Click on Payments;
- Click on State – Pay to the State;
- Enter the 15 digits of the Reference Number from the bottom left side of invoice;
- Enter the Amount in Euros;
- Enter 9 digits of the Fiscal Number (“NIB”) from the top left;
- Click Next;
- Verify the information and Pay;
- Print your Receipt.
To pay from a foreign bank account:
Make a transfer from your overseas bank with the following information:
- Your Portuguese fiscal number (“NIF”)
- “Referencia para Pagamento” – the reference number on your bill
To the following account:
- Creditor´s name: Autoridade Tributaria e Aduaneira
- Bank account number: 83 69 27
- IBAN: PT500 781 00190 000000836927
- Bank name: Institudo de Gestão da Tesouraria e do Credito Publico
- SWIFT Code: IGCPPTPL
For further information, contact:
Centro de Atendimento Telefónico (CAT) of the “AT” (Autoridade Tributária e Aduaneira), through the number +351 217 206 707, every working day from 9H00 to 19H00 or contact the electronic service (e-balcão) on the Finanças Portal.
4 out of 5 Local Lodging establishments in Portugal saw reservations cancelled in the 6 months between March and August. Due to quarantines and more restrictive measures in force to mobility, Madeira and the Azores suffered the highest number of cancellations.
The hotels in the Algarve recorded a global average occupancy rate per room of 1% in April. According to the largest hotel association in the region, the Association of Hotels and Tourist Enterprises of the Algarve (AHETA), the impact of the pandemic caused by the new coronavirus began to affect tourism in March.
The national minimum wage in Portugal rises from €600 to €635 in 2020, a measure that should benefit 720,000 workers. The modification translates into a net salary increase of €31.13 per month (in 14 payments per annum). This basic salary is tax-exempt from Individual Income Tax (IRS). Workers pay only 11% in Social Security contributions. In the EU, the monthly national minimum wage ranges from a high of €2,090 in Luxembourg to a low of €312 in Bulgaria.
In 2019, tourist establishments registered 27 million guests and 69.9 million overnight stays, corresponding to annual increases of 7.3% and 4.1% respectively, according to preliminary data from the National Statistics Institute. Of these registered guests, 10.7 million correspond to residents in Portugal and 16.3 million to visitors living abroad.
The Government wants to end the granting of Golden Visas for third-country nationals purchasing real estate in the greater metropolitan areas of Lisbon and Oporto. In the seven years since its inception, the plan has barely touched the interior districts of the country. Historically, the concession of Golden Visas has accounted for just 3% of applications to the programme.
In November of 2019, total investments from Residence Permits for Investment Activities (ARI) tallied €37 million, a decrease of 52% over the same month of 2018 (€77.1 million). Comparing to October, when new investments totalled €60 million, the decline was 38%. In November, 64 Golden Visas were issued, of which 61 were for property purchases and three for capital transfer. In the first 11 months of 2019, investments have totalled €698 million, down 6% from the same period a year earlier. By nationality, China continued to lead in the number of Golden Visas issued, followed by Brazil, Turkey, South Africa and Russia.
In 2018, births in Portugal stood at 87,000 while citizenship concessions rose to nearly 128,000. To date, 2019 statistics continue to reflect the same proportion: net growth in Portuguese citizenship continues to be due largely to the naturalisation of foreign residents.
The value of tax benefits to non-habitual residents keeps growing according to the “Tribunal de Contas” (National Audit Office). In 2018, there were €548 million in NHR exemptions granted to foreign pensioners. Nevertheless, this apparent tax giveaway would have never existed if the NHR regime had not attracted these foreigners to Portugal in the first place. For example, these pensioners paid almost €80 million to the state in Individual Income Tax (“IRS “) on non-exempt income. In addition, there are IMT, IMI and VAT levies which the Government collects above and beyond the scope of the Non-Habitual Residency scheme.