investing in portugal - portuguese tax system at a glance [episode 02]

PORTUGUESE TAX SYSTEMAT A GLANCEINVESTING IN PORTUGAL - COMPLETE GUIDE

EPISODE 02


EPISODE 02

UWU SOLUTIONS | WWW.UWU.PT | [email protected]

NOW THAT JAMES KNOWS THAT PORTUGAL IS A PRIME LOCATION TO INVEST, DO BUSINESS AND LIVE...

NOW THAT JAMES KNOWS THAT PORTUGAL IS A PRIME LOCATION TO INVEST, DO BUSINESS AND LIVE...

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THE SAFIEST COUNTRIES IN THE W

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ON

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THE SAFIEST COUNTRIES IN THE W

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VERY GOOD OPPORTUNITIES TO INVEST

VERY GOOD OPPORTUNITIES TO INVEST

HIG

H QUALITY HEALTH CARE FACILITIES

HIG

H QUALITY HEALTH CARE FACILITIES


STORESTORE


...HE IS REALLY CONSIDERING THE POSSIBILITY TO SET A COMPANY IN PORTUGAL.

...HE IS REALLY CONSIDERING THE POSSIBILITY TO SET A COMPANY IN PORTUGAL.

BUT FIRST, IT’S VERY IMPORTANT TO CLARIFY CERTAIN RULES.

BUT FIRST, IT’S VERY IMPORTANT TO CLARIFY CERTAIN RULES.


IT SEEMS THAT HE COULD TAKE SOME TAX ADVANTAGES BY DEVELOPING HIS BUSINESS IN PORTUGAL.

IT SEEMS THAT HE COULD TAKE SOME TAX ADVANTAGES BY DEVELOPING HIS BUSINESS IN PORTUGAL.


PERSONAL INCOME TAX

PERSONAL INCOME TAX

MUNICIPAL PROPERTY

TRANSFER TAX MUNICIPAL PROPERTY

TRANSFER TAX

MUNICIPAL PROPERTY TAX

MUNICIPAL PROPERTY TAX

VALUE ADDED TAX

VALUE ADDED TAX

CORPORATE

INCOME TAX CORPORATE

INCOME TAX

HOWEVER, HE’S NOT QUITE SURE ABOUT THE PORTUGUESE TAX RULES AND BENEFITS.



PERSONAL INCOME TAX(IRS)

PERSONAL INCOME TAX(IRS)


RESIDENT INDIVIDUALS ARE LIABLE TO IRS ON THEIR WORLDWIDE INCOME. IRS IS LEVIED ON RESIDENTS AT PROGRESSIVE RATES,

WHICH MAY VARY BETWEEN...

$14.5 %

$48 %

ACCORDING TO THE BRACKET OF TAXABLE INCOME

(IE, THE SUM OF THE VARIOUS CATEGORIES OF INCOME SUBJECT TO TAXATION NET FROM THE CORRESPONDING

DEDUCTIONS)

NOWADAYS THERE IS A SPECIAL REGIME FOR NON-HABITUAL TAX RESIDENT INDIVIDUALS. THIS REGIME CAN ALLOW SIGNIFICANT TAX SAVINGS IN PERSONAL INCOME TAX FOR PEOPLE THAT CHANGE ITS

RESIDENCE TO PORTUGAL.LEARN MORE AT: HTTP://NONHABITUALRESIDENTS.UWU.PT/



CORPORATE INCOME TAX(IRC)

CORPORATE INCOME TAX(IRC)

STORESTORE

25% → 21%25% → 21%

THE STANDARD CORPORATE INCOME TAX RATE HAS DECREASED (FROM 25% IN 2013 TO 21% IN 2016). FURTHERMORE, SINCE 2014 THE FIRST

€15.000 OF PROFIT ARE TAXED AT 17% FOR SME'S.



MUNICIPAL PROPERTY TAX (IMI)

MUNICIPAL PROPERTY TAX (IMI)


IMI IS LEVIED OVER THE FISCAL VALUE OF REAL ESTATE LOCATED IN PORTUGAL. IT’S DUE BY THE LEGAL OWNER/USER OF THE

REAL ESTATE AND ASSESSED ON AN ANNUAL BASIS. IMI RATES ARE:

0,2 % TO 0,4 % RATE(IF THE VALUE OF THE URBAN PROPERTY

IS ASSESSED IN ACCORDANCE WITH THE IMI CODE)

0,4% TO 0,7% RATE (FOR URBAN PROPERTY)

8% RATE (FOR RURAL PROPERTY)


MUNICIPAL PROPERTY TRANSFER TAX(IMT)

MUNICIPAL PROPERTY TRANSFER TAX(IMT)


IMT IS LEVIED ON THE TRANSFER OF PROPERTY RIGHTS OVER REAL ESTATE LOCATED IN PORTUGAL, OR OTHER ACTS WHICH

PROVIDE SIMILAR ECONOMIC RESULTS. IMT IS ASSESSED:

UP TO A 8% RATE(ACQUISITIONS OF URBAN PROPERTY

EXCLUSIVELY INTENDED FOR DWELLING PURPOSES)

AT A 6,5% RATE (ACQUISITIONS OF OTHER

URBAN PROPERTY)

AT A 5% RATE (ACQUISITION OF RURAL PROPERTY)


VALUE ADDED TAX(VAT)

VALUE ADDED TAX(VAT)


VAT RATES APPLIABLE IN THE MAINLAND ARE 23% (STANDARD), 13% (INTERMEDIATE) AND 6% (REDUCED).

23% - STANDARD RATE

13% - INTERMEDIATE RATE

6% - REDUCED RATE


EPISODE 02


EPISODE 02


investing in portugal - portuguese tax system at a glance [episode 02]

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