Costs

• IMT - "Imposto Municipal sobre Transmissões" (Municipal Property Transfer Tax)
  Not applicable - paid by the buyer
  
  
• Direct Debits:
  All direct debits regarding the property should be cancelled.
  
  
• IMI - Imposto Municipal sobre Imóveis (Council tax on Properties)
  This tax is paid at the "Finanças" (Tax Department) of the area where the property is located. Whoever is the owner as at 31st December, is liable for the IMI of the year.
  
  
• Lawyer's fees
  The vendor's lawyer fees will depend on the agreement they may have with an existing local lawyer. Fees relating to the selling representation may differ between lawyers. It is best to confirm directly with your own lawyer, but we are happy to recommend a list of lawyers. On occasion, both parties agree to complete the transaction using the same lawyer, thereby, sharing costs. This is not a common practise and not recommended as there may be a conflict of interest, nevertheless it still remains an option.
  
  
• IRS/IRC - Imposto sobre o rendimentos-renidmentos de mais-valias
  (Capital Gains Tax) "Capital Gain" is a profit obtained from the sale of a property that was previously purchased at a lower price. Your Fiscal Representative will need to report within a specific period, all Capital Gains (and losses) to the Tax Department. You or your representative will need to present the following to determine the capital gains obtained:
  
  
  • Selling price
  • Purchase price
  • Deductible expenses
  • IMT costs on purchase, notary and registration charges and property enhancements in the previous 5 years
  • Indexation relief
  
  Divinehome recommends you consult with your Tax Advisor or Accountant or an in-depth consultation regarding tax repercussions in the country where you are residing. Transaction Capital Gains exemptions are rare, but the following are a few examples:
  
  
  • Property purchased before the 1st January 1989 (does not apply to sites for construction)
  • Whenever the sale price is reinvested into another principal residence within a specific time period Please note: these exemptions do not apply to non-resident companies.
  • Individuals must file tax return before 25th May and the tax due once the bill is received must be paid within 30 days
  • Non-Resident Companies must file tax return and pay the tax due within 30 days of deed date
  
  
  Failure to submit a return or pay the due tax on time will result in penalties to be paid as well as interest.
  
  

  Please note: These are for guidance only and we cannot accept responsibility for any mistakes or misinformation. We strongly recommend Legal and Fiscal Consultations at all times prior to any transaction as the laws are constantly changing.