FISCAL REPRESENTATION

 

All non - resident individual who wish to open a bank account (request a loan) or purchase a property (sign a POA, a contract, pay property taxes etc) in Portugal are required, under governing legislations to appoint a fiscal representative, who will act an intermediary with the Portuguese Revenue ensuring that all is tax compliant.

 

IMT 2010 - MADEIRA PROPERTY TAX RATE 2010

PROPERTY TRANSFER TAX FOR MADEIRA

IMT TAX rates for 2010 in Madeira for Permanent Residents (Residence in Madeira Island for 6 months or more during the year)

 

Value of Residential Property	%Tax	Amount Deductible
Up to 113,023.00 Euros	0 %	0.00 Euros
From 113,023.01 Euros up to 154,603.00 Euros	2 %	2,260.45 Euros
From 154,603.01Euros up to 210,798.00 Euros	5 %	6,898.53 Euros
From 210,798.01 Euros up to 351,288.00 Euros	7 %	11,114.48 Euros
From 351,288.01 Euros up to 702,450.00 Euros	8 %	14,627.35 Euros
Over and above 702,4505.00 Euros	6 % ONLY	0.00 Euros

For example: For a property price of 150,000.00 Euros:

150,000.00 Euros x 2 % = 3,000.00 Euros

3,000.00 Euros - 2,260.45 Euros = 739.50 Euros payable IMT Tax

IMT TAX rates for 2009 in Madeira for Non-Permanent Residents (Residence in Madeira Island for less than 6 months)

 

Value of Residential Property	%Tax	Amount Deductible
Up to 113,023.00 Euros	0 %	0.00 Euros
From 113,023.01 Euros up to 154,603.00 Euros	2 %	1,130.23 Euros
From 154,603.01 Euros up to 210,798.00 Euros	5 %	5,768.30 Euros
From 210,798.01 Euros up to 351,288.00 Euros	7 %	9,984.25 Euros
From 351,288.01 Euros up to 773,723.00 Euros	8 %	13,497.13 Euros
Over and above 773,723.00 Euros	6 % ONLY	0.00 Euros

 

For example: For a property price of 150,000.00 Euros:

150,000.00 Euros x 2 % = 3,000.00 Euros

3,000.00 Euros - 1,130.23 Euros = 1,869.77 Euros payable IMT Tax

 

Exceptions

- Other urban property, such as building plots or land to build an urban dwelling: 6.5%.
- Rustic Property (agricultural land): 5.0 %.
- When a company listed in one of the black-listed jurisdictions acquires a property in Portugal: punitive tax rate of 8%. (Note that if a company listed in a white-listed jurisdiction acquires a property, the same rates apply as shown in the table above.

 

IMI Madeira 2010 - Municipal Property tax For Madeira Island

The IMI is an annual tax on a property, owed by whoever owns the property on 31 December of each year. For this purpose, the owner is considered to be the person/persons/entity recorded as such in the Property Matrix, or whoever is in legal possession of the property at that time.

The IMI rates, applied to the Taxable Asset Value of the property, are as follows:

- 0.8% for rural properties;
- 0.2 to 0.5% for urban properties (Villas, apartments, offices and commercial spaces) when the taxable asset value has been updated according to the new rules.
- 0.4 to 0.8% for urban properties which have not yet been re-evaluated in accordance with the new rules.
- 1% for any property owned by residents of the territories listed as "Tax Havens" or Reduced Tax Domiciles by the Ministry of Finance. This rate increases 2% if the property is left empty for periods longer than a year.

Where a spread exists, the actual rate is determined annually by Municipality of the area in which the property is situated, and may exceed the limits under special circumstances.

The IMI calculation is based on the values recorded in the Property Matrix on 31 December of each year, and is due at the end of April of the following year. If the amount exceeds 250 Euros it may be paid in two instalments, the first being due at the end of April, and the second at the end of September, of the year following that for which the tax applies.