The guide to spectacular property in and around ... - Quinta Properties

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in one of the black-listed jurisdictions ie: Gibraltar, the IMI will be levied at 5% of the ratable value. Conclusion It may come as a surprise that filing a correct tax return in Portugal can actually save you money. Submitting a tax declaration is not synonymous with paying tax. The Portuguese tax code has generous allowances and unexpected exclusions on certain forms of income, broad deductions for numerous types of expenses, and liberal tax credits for many common expenditures. Many people find their tax burden in Portugal to be significantly lower than in their country of origin. Note these examples: Rental Income If a resident has a buy-to-let scheme, a couple with €50,000 of income from rentals to tourists would have less than quinta properties financial pages quinta properties financial pages €1,000 of tax to pay. Non-residents enjoy a flat rate on rental income of only 15%. Roll-Over Relief If you sell your principal residence and fully reinvest the proceeds in a new home, the capital gain is exempt. This is to be extended eventually to new home reinvestment anywhere in the European Union. Nominee Companies If you purchase property for investment purposes, using a Portuguese Nominee Company will drop your eventual Capital Gains Tax rate by 2 fold and often eliminate Property Transfer Tax ‘IMT’. Inheritance Tax Portugal abolished Inheritance Tax as of 2004. Transfers to immediate relatives (spouse, children, grandchildren, parents and grandparents) are tax exempt. All others pay only 10% Stamp Duty. These and other benefits are entitlements under legislation. It is your right as a citizen and taxpayer to take maximum advantage of these tax breaks. Who knows? Portugal may prove to be a legal ‘tax haven’ for you within Europe. Private consultations with Dennis Swing Greene from euroFINESCO can be scheduled at our offices in Guia (Albufeira) and Lisbon (Chiado) or by Video Conference via the Internet. Head office Algarve: Tel: 00351 289 561333. Lisbon office: Tel: 00351 213 424210, e-mail: info@eurofinesco.com, or www.eurofinesco.com. Doctor Leonardo Ferreira Dias One of the Algarve’s most respected Lawyers passed away in April 2005. Born and educated in Lisbon; Dr Dias arrived in the Algarve as a young and enthusiastic Lawyer. It did not take long before he started his own practice and he soon became known as one the areas most respected professionals. Dr Dias loved the law and like everything he did, he gave it his all. Clients, friends and family remember him dearly and miss him enormously. Taxation on Property: Spain vs Portugal by Dennis Swing Greene Unless you have specific links to Portugal, you may also be considering other countries for investment property options. While there are innumerable criteria to take into consideration, a head-to-head comparison of eventual forms of taxation will prove to be one of the key factors in making an informed decision. The following chart lists the principal taxes related to property in Spain and Portugal and the respective rates of taxation in 2005. Not surprisingly, neither country would normally be classified as a ‘low-tax jurisdiction’. However, with the exception of VAT, it is quite apparent that, of the two countries, Portugal is clearly the more benign. HIGHER TAX SIMILAR TAX LOWER TAX TAXES SPAIN PORTUGAL Personal Income Tax (IRPF / IRS) 15% – 45% (€46k) 12% – 42% (€60k) Tax on Non-Residents (IRNR) 25% 25% (15% on lets) Special Non-Resident Property Tax 3% pa on property value 0 Real Estate Tax (Plusvalia / IMI) 2% – 3.7% 0.5% – 0.8% / 0.3% – 0.5% Capital Gains Tax on Real Estate Residents: 15% Residents: 50% exemption; Non-Residents: 35% balance at marginal rates / (+ 5% withholding) Non-Residents: 25% Wealth Tax (IP) 0.2 % – 2.5% p.a. 0 VAT (IVA) 4% / 7% / 16% 5% / 12% / 21% Inheritance Tax (ISD) 7.65% – 34% 0 (immediate family: exempt Others: 10% Stamp Duty) Property Transfer Tax 7% (Stamp Duty) 0 – 6% (IMT) 50 51
know passion for property www.quintaproperty.com Average Running Costs Outside Quinta do Lago Development Euros 2 Bedroom 4 Bedroom 4 Bedroom Apartment Villa Villa Infrastructure 592 1,481 N/A Security Services 344 1,438 N/A Condominium Fees 3,500 N/A N/A Alarm Maint/Monitoring 120 900 375 Insurance 110 1,400 1,400 Property Tax 550 4,977 2,100 Property Management 760 2,636 2,100 Maid/House Maintenance1,100 7,000 5,000 Garden Maintenance N/A 5,100 4,000 Pool Maintenance N/A 3,000 2,100 Electricity 650 2,700 2,100 Water * 200 4,120 2,000 Cable/Sat TV 355 363 400 Total 8,281 35,115 21,575 *Many properties have their own boreholes and pay no actual water costs. Please note that these are averages and actual figures will vary from property to property. quinta properties financial pages Quinta do Lago Condominium, Infrastructure and Security Service Costs Condominium Infrastructure/ Security Basic Services Individual Villas Plots with no construction N/A € 944 N/A Three bedroom N/A € 948 € 795 Five bedroom N/A € 1,580 € 1,326 Encosta do Lago Two bedroom included € 2,832 included Three bedroom included € 4,248 included Lakeside Village One bedroom apartment € 1,137 € 296 € 172 Two bedroom apartment € 1,912 € 593 € 344 Three bedroom villa € 2,232 € 888 € 516 Four bedroom villa € 2,976 € 1,185 € 885 Pinheiros Altos* One bedroom apartment € 2,660 € 296 € 416 Two bedroom apartment € 2,980 € 592 € 1,052 Three bedroom semi-detached / Townhouse € 4,600 € 889 € 1,248 Four bedroom villa € 10,500 € 1,100 € 1,600 São Lourenço Studio € 1,690 € 296 € 172 One bedroom apartment € 2,126 € 296 € 172 Two bedroom apartment € 4,225 € 592 € 344 Three bedroom apartment € 6,325 € 888 € 516 Monte da Quinta* Two bedroom townhouse € 3,500 included included Three bedroom townhouse € 5,600 included included Three bedroom detached villa € 7,200 included included Four bedroom detached villa € 7,674 included included Five bedroom detached villa € 10,167 included included Vale do Pinheiros One bedroom apartment € 3,500 included included Two bedroom apartment € 4,500 included included Prices do not include: VAT, Council tax, private gardens or utility charges. Please note prices shown are intended as a guide only, and were correct at time of print. * Minimum costs quoted as each property is priced individually in accordance with the perimeter. 53
Page 1 and 2: QUINTA DO LAGO PORTUGAL Estrada Pin
Page 3 and 4: welcome We are delighted to present
Page 5 and 6: 8 Sister Company If Quinta Properti
Page 7 and 8: Quinta do Lago Arriving at Quinta d
Page 9 and 10: 16 my idea of paradise When Jimmy T
Page 11 and 12: Since then Ferro Design has continu
Page 13 and 14: Conjuror 24 Gisela is rapidly becom
Page 15 and 16: It’s no dream. Intelligent buildi
Page 17 and 18: 32 the Pride and the passion THE PE
Page 19 and 20: THE JOURNEY Getting there by car is
Page 21 and 22: 40 on course at Pinheiros Altos A n
Page 23 and 24: Buying Procedures There are two mai
Page 25: Portuguese Property and Taxation Th
Page 29 and 30: Exclusively from Quinta Properties
Page 31 and 32: A truly magnificent villa recently
Page 33 and 34: 64 “If your passion is golf, this
Page 35 and 36: savills.com/abroad Luxurious hillsi
Page 37: www.quintaproperty.com Quinta do La

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