The Tax department have confirmed that commission paid to an estate agent on the sale of the property is considered a deductible expense against capital gains tax (Mais Valia).
Despite much doom and gloom in the papers, its business as usual at Quinta Properties. Lower and middle markets are down a bit and there are perhaps fewer clients walking into our offices, but the buyers still come and they still want only the best property.
New law coming into effect in 2009 will allow other entities besides the Land Registrar and Notaries to carry out property registrations; Lawyers, Chambers of Commerce & Industry, and Solicitors will also be able to carry these out.
When buying a property in Portugal area, and especially one priced at over 1 million euros, you may well be confronted with the question as to whether to buy it in your own name, or to use a corporate structure.
Around 20,000 people who have bougth overseas holiday homes through companies could be in line for tax refunds averaging £4,000 for every year they have paid tax.
The British Government has announced its intention to bring forward legislation in Finance Bill 2008 which will ensure that individuals who have bought or will buy a home abroad, will not face a benefit in kind tax charge for any private use of the property if purchased through a company.
With the announcement of the budget for 2007, the Portuguese government has proposed a change in the tax laws relating to offshore companies in the so-called “blacklisted” territories like Gibraltar, Channel Islands, Bahamas, Cayman Islands amongst many others.
