|
Portugal Value Added Tax
- In most cases, VAT in Portugal is 20%, Effective from July 1, 2008 (previous rate - 21%).
- There is a reduced rate of 12% that applies, in the main, to restaurant services etc. There is a further reduced rate of 5% that relates mainly to basic food products.
- The VAT rates for the Azores and Madeira are lower (14%, 8% and 4%).
- VAT is payable on assets and services in Portugal as well as on imports into Portugal.
- Exports from Portugal are exempt from VAT.
- Income from medications and medical services as well as income from insurance and banking services are exempt from VAT.
- Reports to the VAT authorities are made monthly but if the annual income is below Euro 498,797 the report is made every three months.
- When the annual turnover is less than Euro 9,976, income is exempt from VAT; on the other hand, Vat may not be offset against expenses.
Portugal Real Estate Transfer Tax
- A real estate transfer tax is payable in Portugal on the transfer of real estate.
- There is an exemption up to a limit if the transfer concerns residential real estate.
- The basic rate of tax on urban real estate is 6.5%. Non-urban real estate transfers are taxable at 5%.
Portugal Inheritance and Gifts Tax
- Portugal Inheritance and gift tax was abolished on 1.1.2004, when relating to close relatives, parents, spouses and children.
- The tax for non close inheritors was replaced by 10% stamp duty.
|
