Now that you have decided to buy your home, it is even more important to keep in mind the various costs associated with acquiring the property. Notwithstanding the information below, the professional agents from VillasKey will be happy to assist you with the calculation of your expenses based on the cost of the house you are going to buy.
IMT - Municipal Tax on Real Estate Transmission
The application of this tax occurs when there is a change of owners of a property and there is a financial consideration, that is, when a purchase occurs. The calculation of this tax varies according to the type of property (urban or rural), the location (Continent or Autonomous Regions) and the purpose (permanent or secondary housing). The calculation of the IMT is based on the higher of the two values: the property tax value of the property or the amount declared in the deed of purchase and sale. There is a tax charge on the highest amount of the two, defined each year in the State Budget.
The calculation of the IMT is carried out according to the following formula:
Rates on own and permanent housing acquisition:
Non-permanent housing acquisition (vacation or investment):
Exemption - Buyers can benefit from the IMT exemption when housing is exclusively intended for permanent and private housing, for properties up to € 92,407 (in the Mainland) and € 115,509.00 (in the Autonomous Regions).
Note: IMT updated rates can be consulted online any time at the Finance Portal.
On the process of acquiring a property, there are two types of stamp duties:
- Stamp duty on the transaction (purchase and sale), which corresponds to a rate of 0.8% on the acquisition value of the property that appears in the deed;
- Stamp duty on the loan, whenever it is used to the Mortgage for the acquisition of the house, corresponding to a rate of 0.6% on the loan amount.
The Stamp Duty calculation is done according to the following formulas:
IMI - Municipal Property Tax
The IMI is an annual payment tax by the owners, calculated based on the net asset value of the real estate located in the national territory, to which a fee is applied.
The IMI rates are ascertained by municipalities annually where the property is introduced, varying from county to county. At present, the range is between 0.3% and 0.5% for urban buildings assessed under the IMI Code.
IMI is paid in April. The IMI payment structures is as follows: If the amount is up to 250 euros, the full amount is to be settled, up to 500 euros can be paid in two installments and if it´s 500 euros or more, can be paid in three installments.
IMI General Table:
Rustic buildings: 0.8%
- Urban buildings not assessed under CIMI: 0.5% to 0.8% *
- Urban buildings assessed under CIMI (transacted or revalued from 2006): from 0.3% to 0.5% *
* - Fixed values annually by each municipality
Exemption - Exemption from IMI may be requested for own and permanent housing and in residential acquired as from 2012 (the application must occur within a maximum period of 6 months after the deed of the property). The exemption will have to be requested within 60 days after the assignment. The same taxpayer can only request exemption if he does not have another IMI exemption in progress and if he has not requested exemption more than twice.
The exemption period is determined according to the property tax value of the property and if the household has a taxable income for income tax purposes in the previous year less than or equal to € 153,300. The exemption can reach a maximum of 3 years.
The calculation of IMI is made according to the following formula:
(Att - tables)
Note: IMI rates are applied annually from the municipality, varying from county to county, and can be consulted at the Finance Portal
REGISTRATION AND CONTRACTS
In some cases, some costs on the purchase will be on hold due to the Acquisition and Mortgage Registry, if existant.
For the moment, straight forward proceedings can be dealt at Casa Pronta (state) and Casa Simples/Casa Segura (Notaries).
When formalizing the deed in a Land Registry Office, said service Casa Pronta, the cost will include the deed of acquisition and the corresponding records (acquisition / mortgage). In this option, you will leave from the deed with all the carried out registry.
If you opt for the Deed to take place at the Notarial Office, there will be expenses such as the fees for the preparation, granting of the deed, various notarial acts and the costs of the records. In the Offices that formalize the deeds in the so-called Procedimento Casa Simples / Casa Segura, it is the Notary that is responsible for the application of the records of the acquisition, mortgage and bank guarantee of the bond. These records are done online and may take up to 10 business days to complete.
If the buyer does not opt for Procedimento Casa Simples / Casa Segurança, the purchaser will be responsible for registering (or alternatively the solicitor / lawyer / financial institution responsible for granting the credit).
The fees of the Public Notary vary, but the costs done online for the registrations and the Procedure Casa Pronta are tabulated.
Certificate of Land Registration
The Certificate of Land Registry with the registrations and descriptions of the building in place can be requested online or at a Counter of the Registry of Land Registry, and the validated document. The costs of any requests online are always lower than those charged at the branches of the Conservatórias.
Note: Valid legislation consulting applies