[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
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for the portion of the value exceeding € 1,000,000 and equal to or less than € 2,000,000, and to a marginal rate of 1.5% for the portion exceeding € 2,000,000. AIMI is assessed by tax authorities in June of each year, being the respective payment made in September. are expressly foreseen in law and are generally required when properties are destined to the construction of new buildings and whenever the value of plots of land for construction increases significantly due to major infrastructure public works carried out (mostly in Lisbon, Porto and their outskirts). The applicable rate varies between 20% and 30% and is levied on the aforesaid increased value. VI.2.4. TAX ON INCOME FROM PROPERTY OBTAINED IN PORTUGAL BY NON-RESIDENTS Income from property obtained in Portugal by non-residents (e.g., leases) is taxable at a special rate of 28% (applicable to individuals), or 25% (applicable to corporate entities), being in both cases subject to a 25% withholding tax. Capital gains deriving from the transmission of Portuguese real estate by non-resident individuals are nowadays VI.2.3. SPECIAL CONTRIBUTIONS Special Contributions generally taxed on 50% of net capital gains (as determined by
law) at the IRS general and progressive rates, varying from 14,5% to 48% for annual incomes up to €78.834,00 . Above that threshold an additional flat rate surcharge of 2,5% applies to global incomes of up to €250.000,00 and of 5% thereafter. When obtained by companies such capital gains are to be taxed under the correspondent Corporate Income Tax applicable regime.
VII. LEASING LEGAL FRAMEWORK VII.1. GENERAL ISSUES
In Portugal, leasing is, day by day, acquiring a more relevant economic weight. On 14 August 2012, in compliance with the terms established in the memorandum of understanding executed by and between Portugal, the European Commission, the European Central Bank and the International Monetary Fund, a pack of Laws entered into force with the purpose of implementing structural reforms in the Portuguese legal framework of real estate lease to boost the market. The real estate lease is divided into two types: (i) leases for non-housing purposes and (ii) leases for housing purposes. VII.2. LEASES FOR NON-HOUSING PURPOSES The most relevant aspects of lease agreements for non-housing purposes, usually for commercial or industrial purposes, can be freely stipulated by
ILN Real Estate Group – Buying and Selling Real Estate Series
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