Extra Costs over and above the purchase
price
IMT (IMPOSTO MUNICIPAL SOBRE TRANSMISSÕES):
Purchases are usually subject to a State payment paid
in at the Tax Office closest to the location of the property,
with the amount varying with the nature of the purchase.
In certain cases the buyer may be exempt from this Tax
if the value of the deed of conveyance (escritura) is
below 80,000.00 euros. The table below is based on a series
of “platforms of sale value” and applies to
all urban purchases, rural properties are subject to a
flat Tax based on escritura value, and a purchase by an
offshore Company is subject to a Tax of 15% applied to
the escritura value.
| Up to Euros 80,000.00 |
|
Tax = 0% |
| Up to Euros 80,000.00 |
up to 110,000.00 |
Tax = 2% |
| Up to Euros 110,000.00 |
up to 150.000.00 |
Tax = 5% |
| Up to Euros 150,000.00 |
up to 250,000.00 |
Tax = 7% |
| Up to Euros 250,000.00 |
up to 500,000.00 |
Tax = 8% |
| Up to Euros 500,000.00 |
|
Tax = 6% |
Notaries & Registration Fees
These are paid by the purchaser on completion and will
be approximately 2% of the value of the transaction.
Outstanding Annual Property Taxes (IMI)
Unpaid property taxes (IMI) attract fines, but may be
allowed to mount up for some considerable time without
official action, so ask the vendor to show proof of payment
for the last five years. Your lawyer should settle any
outstanding property taxes before you make the final payment.
Final Deed
Proper title to the property comes with the ‘final
deed of conveyance’ (escritura), with all relevant
documents checked before the final contract is read aloud
(by an interpreter, if necessary), the contract is then
signed in the office of a public notary. |
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