Property tax has sting in the tail

Property tax has sting in the tail

A new a wealth tax on properties in Portugal valued at more than €600,000 (£507,700) has been introduced by the Portuguese government, a leading UK property website reports.

The new property levy, which is an annual rate of 0.3% on properties valued at over €600,000, replaces a 1% charge on homes valued above €1m (£846,000), which has been scrapped.

An allowance applies per individual, so a married couple or those in a civil partnership would only face a tax on any jointly-owned properties over €1.2m (£1.15m).

Intriguingly, if a tax resident of Portugal has a bank account or investment in a jurisdiction on the blacklist of ‘tax havens’, such as Guernsey or Gibraltar, income is taxed at a higher rate of 35%, compared to the flat rate of 28%, and this could potentially also affect people who own a Portuguese property through a company since the entire value of the property would be subject to the new wealth tax, with no allowance. READ MORE: https://www.propertyinvestortoday.co.uk/breaking-news/2017/2/new-wealth-tax-on-portuguese-properties-over-600k

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