[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
201
Finally, the following relevant aspects of the regime applicable to SIGI should be noted: i) The indebtedness of SIGI may not correspond, at any time, to more than 60% of the value of the total assets of the SIGI; ii) The shares representing the entire share capital of SIGI must, within one year from the registration of the company's incorporation, be admitted to trading on a regulated market or selected for trading on a multilateral trading facility located or operating in Portugal or in another Member State of the EU or European Economic Area; iii) Within nine months of the end of each financial year, SIGI companies must distribute, in the form of dividends, at least: (i) 90% of the profits of the financial year resulting from the payment of dividends and income from shares or units distributed by certain entities; and (ii) 75% of the remaining profits of the financial year distributable under the terms of the Portuguese Companies Code.
signing of the real estate acquisition agreement. IMT – Real Estate Transfer Tax, which is calculated over the price of the real estate or its tax patrimonial value (“VPT”) , if higher (which is uncommon). IMT tax rates for housing buildings are progressive between 0% to 7.5% (for buildings whose acquisition price or VPT exceeds € 1,050,400) and fixed for rural property (5%) and plots of land for construction or other urban buildings (6.5%), or when the purchaser, not as an individual, has office, or is deemed as being held or controlled by an entity domiciled, at tax haven (10%). Nevertheless, Portuguese law foresees some exceptions or deferrals on IMT payments, some of them applicable when the acquisition is made by using some of the special purpose acquisition vehicles identified above. Indeed, real estate companies benefit from an actual exemption as long as the property acquired is re- sold (i) within 3 years; (ii) in the same physical state in which it was acquired; (iii) without the purpose of being re-sold again. Upon the acquisition of property in the context of urban rehabilitation operations over buildings, an exemption is also available upon meeting certain conditions. IS – Stamp Duty, calculated over the price, or the VPT, if higher. IS tax rate is fixed in 0,8% in most frequent situations.
VI. TAX REGIME
VI.1. PROPERTY ACQUISITION VI.1.1. REAL ESTATE TRANSFER TAX (“IMPOSTO MUNICIPAL SOBRE AS TRANSMISSÕES ONEROSAS DE IMÓVEIS”) AND STAMP DUTY (“IMPOSTO D O SELO”)
The acquisition of real estate is subject to two types of taxes, which must be paid by the purchaser to the tax authorities before the
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter