RIOMAGIC DELUXE,
Helps you with all the procedures after choosing your dream home:
- Brokerage
- Deposit
- Town Hall
- Land Registry
- Tax Office
- Promissory Contract detailing the conditions of Sale, Lease or Termination of previous position
- Property Purchase Tax (IMT)
- Property Tax
- Additional taxes and costs
To avoid unnecessary trouble and costs, make sure you choose the right broker. RIOMAGIC DELUXE is licensed by the INCI (Instituto da Construção e do Imobiliário), with the AMI (Real Estate Licence) number 5494. To certify any transaction, real estate brokers are required by law to have a minimum civil liability insurance of €60,000.00, and provide a €2,500.00 deposit for repayment of any amounts wrongly received. They are also required by law to include the term "Mediação Imobiliária" in their name.
We fulfill all of these requirements.
The deposit usually corresponds to 1/5 of the total amount, though this is not mandatory.
If the buyer fails to complete the deal, he loses whatever deposit he has already paid. If it is the seller who fails to complete the deal, he has to pay back double of the deposit he has already received.
You must check:
If your desired home has been properly registered. You should also ask for a copy of its habitation licence, and its "Ficha Técnica" - a document with all the information about the property, such as the builder's and suppliers' details, and the materials used.
If it hasnt been built yet, you should request a copy of the construction licence from the contractor.
PROMISSORY CONTRACT DETAILING THE CONDITIONS OF SALE, LEASE OR TERMINATION OF PREVIOUS POSITION
What is the IMT (Property Purchase Tax)?
The Property Purchase Tax (IMT), which is paid at the Tax Office before signing the final deed, can be calculated by multiplying the marginal rate ("Taxa Marginal") by the property value declared on the CPCV and in the title deed (or by the value declared in the Urban Land Registry, if the latter is greater) and then subtracting the deductable amount ("Valor a Abater").
How can I be exempt from paying IMT?
Own permanent homes and transactions up to as 89.700,00 € are exempt from IMT (a 1% tax rate is applicable in other property types). The amount to pay increases progressively between this value and 557.500,00€ (please see table below). Above 557.500,00 € a 6% tax rate is applicable (Single Rate).
CONTINENTAL PORTUGAL
1. Purchase of urban building or flat exclusively for own permanent home:
| Value of the property (Euro) | Percentage applied | Amount to deduct |
| Up to € 89.700 | 0% | €0,00 |
| Above € 89.700 and up to € 122.700 | 2% | €1.794,00 |
| Above € 122.700 and up to € 167.300 | 5% | € 5.475,00 |
| Above € 167.300 and up to € 278.800 | 7% | € 8.821,06 |
| Above € 278.800 and up to € 557.500 | 8% | € 11.608,95 |
| Above € 557.500 | 6% Single Rate | |
Exemple:
To use as his/her permanent home, "A" acquires a € 139.000,00 building registered as being worth € 100.000,00. "A" will have to pay the following IMT:
(€ 139.000,00 x 5%) - 5.475 = € 1.475
2. Purchase of urban building or flat exclusively for housing purposes, not covered in the table above:
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Purchase of rural buildings: 5%
Purchase of other kinds of urban buldings and other expensive purchases: 6,5%
If the buyer has residence or office in a country, territory or region subject to a more favorable tax regime (a list approved by Decree of the Minister of Finance is available), then a single rate of 8% is used and no exemptions or reductions are applicable.
INDEPENDENT REGIONS (Azores and Madeira)
1. Purchase of urban building or flat exclusively for own permanent home:
| Value of the property (Euro) | Percentage applied | Amount to deduct |
| Up to € 112.125 | 0% | € 0,00 |
| Above € 112.125 and up to € 153.375 | 2% | € 2.242,50 |
| Above € 153.375 and up to € 209.125 | 5% | € 6.843,75 |
| Above € 209.125 and up to € 348.500 | 7% | € 11.026,25 |
| Above € 348.500 and up to € 696.875 | 8% | € 14.511,25 |
| Above € 696.875 | 6% Single Rate | |
2. Purchase of urban building or flat exclusively for housing purposes, not covered in the table above:
| Value of the property (Euro) | Percentage applied | Amount to deduct |
| Up to € 112.125 | 0% | € 0,00 |
| Above € 112.125 and up to € 153.375 | 2% | € 1.121,25 |
| Above € 153.375 and up to € 209.125 | 5% | € 5.722,50 |
| Above € 209.125 and up to € 348.500 | 7% | € 9.905,00 |
| Above € 348.500 and up to € 668.375 | 8% | € 13.390,00 |
| Above € 668.375 | 6% Single Rate | |
PROPERTY TAX (IMI)
General rates are payable annually and are assessed by the local authority (rather like council tax in the UK), based on the property value of rural and urban buildings, and must be paid at the local tax office. The tax for rural buildings is 0,8%, and the tax for urban buildings can vary between 0,4% and 0,7%. Annual rates up to 50 000$ (about 250 Eur) must be paid in full in April, and rates above that value can be fractioned in two installments, to be paid in Abril and September. Exemption of this tax is allowed for a period between four and eight years, according to the property value, as long as it is used as a permanent home, or put on the market for rent. This exemption can be requested up to 90 days after the final deed.
Property Tax (IMI)
| Property Type | Tax |
Rural Buildings |
0,8% |
Urban Buildings |
0,4% to 0,7% |
Urban Buildings evaluated under the CIMI terms |
0,2% to 0,4% |
Exemptions
| Value of the property (Euro) | Exemption period for permanent home or house rental |
Up to € 157.500,00 |
8 years |
Above € 157.500,00 and up to € 236.250,00 |
4 years |
STAMP DUTY AND ADDITIONAL COSTS
