Real Estate: The new measures of 2023
In Portugal, the Law No. 24-D/2022, of December 30, approved the State Budget (OE) for 2023, which came into force on January 1. What impact does OE2023 have on Real Estate?
Taxation of real estate capital gains for residents and non-residents
Capital gains earned by non-resident citizens and resulting from the onerous disposal of real rights over real estate or the onerous assignment of contractual positions or even rights inherent to real estate, are now included and taxed at the general IRS rate only over 50 % of its value.
What has changed?
- The regime for residents and non-residents is the same
- Changed the autonomous taxation rate of 28% on the overall value and not specifically on 50% of its value
Municipal Property Tax – IMI
The IMI came into effect on December 1, 2003, replacing the so-called Municipal Tax. IMI is a tax that is paid annually in one, two or three installments (depending on the amount) and whose rates are:
- Rustic buildings: 0.8%.
- Urban buildings: 0.3% to 0.45%.
- Rural or urban properties owned by entities residing in a country, territory or region subject to a clearly more favorable tax regime: 7.5%.
What has changed?
- A municipal procedure is required to recognize the right to IMI exemption in the case of properties of municipal interest or, when the buildings, even if individually classified, are part of groups or sites classified as national monuments.
Local authorities will now be able to charge premium rates on properties located in areas under urban pressure:
- Up to 25% in situations where, being a home, they are not rented, nor assigned to the taxpayer’s own permanent home
- Up to 50% in cases where the destination is for housing, they are not rented, when the taxable person is a collective entity or another tax equivalent entity
- Up to 100% in all situations in which the property is allocated to local accommodation
