In addition to the property transfer tax (IMT), which ranges from 0 to 8%, depending on the region, and is paid when purchasing a property, the owner of a property in Portugal is required to pay an annual property tax (IMI) paid to the municipal authorities. Its rate ranges from 0.3 to 0.8% of the cadastral value. The tax receipt arrives in March, and the tax is due until the end of April. If the amount of accrued tax exceeds 300 euros, the owner can pay it in two stages – in April and September.

If the purchased property is used for rental, income tax must be paid. It amounts to up to 28% of profits, and you can deduct utility bills, condominium expenses and renovation costs.

There is no inheritance tax in Portugal. However, if the inheritance is not received by a relative, you will have to pay Stamp Duty, which is 10% of the cost.

Source link