Reduced IMT and buying a house

3 Replies

Hi,  I am buying a property near Setubal and I have a Fiscal Number with a UK address.  I cannot change the address to a Portuguese one until I have bought the house as I am staying with friends and don't have any proof that I have been living here for the last three months.  They friends cannot give me a contract or document.  The bank (and the Tax Office) are insisting that I will have to pay full IMT and not the reduced rate for Primary Portuguese Residence as my Fiscal Number is a UK one.  Is this right and is it possible to reclaim the overpaid IMT when I have moved in? x

Replies

DavidW 1458208397

Hi
That does seem odd to me. It would be worth checking again because, as I understand it, proof of residence is not necessarily a requirement to obtain a Fiscal Number (NIF), particularly if you are an EU citizen and need one for transactions which will incur a tax liability. If you go along to the Loja do Cidadão you actually get given a number on the spot.

I can't say with absolute certainty this is the case, as I have not done it myself, but please have a look at their website here where the application for NIF is explained in English. https://www.portaldocidadao.pt/web/autoridade-tributaria-e-aduaneira/numero-de-identificacao-fiscal-pessoa-singular

If you are using a foreign Fiscal ID what you are being told seems correct - but if you have a NIF you can apply straight away for exemption from IMI. It may be too late if you have already signed contracts but even then I doubt it if you apply using the number you are given. Hope this points you in the right direction at least.

Jinjer-Adams-852817 1458208857

Hi, thank you for your response. Can you please tell me who and when it is decided what amount of IMT I should be paying and what this is based on? As I understand it if the house in Portugal is going to be my primary residence then I am entitled to reduced IMT but I need to know how I can prove this. xx

DavidW 1458213370



Hello

Apologies I started talking about IMI which is a regular tax,
like a council tax, and you are asking about IMT on the purchase.  Have had a look for you and gathered some
information which may be of help.   I must stress again I am not an expert so
please check everything.

Have a look at the page on Angloinfo and click on the link
to the Tax Authority to see how it is calculated:

https://www.angloinfo.com/portugal/how-to/page/portugal-money-portuguese-taxes-property-taxes

Usually, if IMT is payable you have to show you have paid the
amount before you can exchange contracts. There is a form called Modelo 3 of
the IMT which your lawyer will fill out for you. If you qualify for exemption
you ask for it on that form. From what we can see you declare that the property
is for your permanent residence but do not have to prove it at that point. Of course you are expected not to make a false declaration. 

Your lawyer will guide you through this once you have a NIF.

There is a statement from the Tax Authorities which says you
can no longer benefit from the exemption and reduction of rates if the
buildings are not used for your personal and permanent residence, within six
months from the date of purchase. If the property is used for a purpose other
than that for which you are given exemption within six years from the date of
purchase, you may have to pay IMT unless you are selling the property.

The links below are all useful information. Unfortunately in
Portuguese but they are authoritative and a Google Translate will get you to a
good understanding

Some general information about the tax:

https://www.publico.pt/economia/noticia/cinco-questoes-sobre-o-imt-1691731

How it is calculated

The rates and thresholds are established or confirmed each
year usually in the State Budget approved annually. The previous year rate is
applied until it is replaced by any changes.  

When the tax is paid

http://www.economias.pt/quando-devo-pagar-o-imt/

http://www.economias.pt/tabelas-imt/

Simulator

On this page there are 4 links to simulations to calculate you
how much IMT is due if there were no exemption. They take into account the
reductions available for each band.  I
used the first one, Lexpoint, which is very simple.

http://www.economias.pt/simulador-de-imt/



DavidW

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