Investing in a Holiday Rental Home

Renting a house to tourists can be a very profitable activity for those who have an available property.

modern villa by night

Modern villa with pool, night scene

 

In November 2014, new regulation regarding holiday rental properties in Portugal (alojamento local) (abbreviated to “AL”) paved the way to regulating a business activity that was, in many cases, conducted informally. Since then more than 10,000 new local lodgings have been registered *.

One of the main questions for many who wanted to start up this activity relates to tax obligations, or rather, whether the income is taxed under category F (as rental income) or category B (as self-employment income).

So what are the tax obligations of those who want to rent their homes out to tourists? Continue reading

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Golden Visa

Night view of the old town in Lisbon, Portugal

Night view of the old town in Lisbon, Portugal

Golden Visa Programme

The Golden Visa programme launched by the Portuguese Authorities is a fast track for investors to obtain a fully valid residency permit in Portugal and consequently free access to the vast majority of European countries (Schengen area).

Aimed at attracting foreign investment to Portugal, the Golden Visa is a very straightforward and flexible programme, with simple and clear legal requirements.  With extremely reduced minimum stay requirements, the Golden Visa is clearly one of the most attractive residency programs for investors in the world.
Investors… Buy your dream home in Portugal & get up to 6% return on your investment plus capital growth.
Find out how to obtain an EU passport in 6 years by investing in real estate in Portugal.  We are based in Cascais on Lisbon’s “Riviera” and will advise you on what is a good property investment for the holiday rental market so you get the best return possible.

QUALIFYING INVESTMENTS
(Only one of the below investment options is needed to qualify)

CAPITAL – Transfer of funds above € 1 million PROPERTY
Purchase of property above € 500,000 EMPLOYMENT
Creation of a minimum of 10 jobs

Advantages and benefits of the Portuguese Golden Visa 

Straightforward and flexible investment requirements
Extremely low minimum stay requirements – 7 days first year and 14 days following periods of 2 years
Fully extensible to family members (with no further investment requirements)
Freedom to travel to all European countries members of the Schengen area
Possibility of Permanent Residency after 5 years and nationality after 6 years
No limitations on ownership of the selected investment
No limitation on subsequent investments or employment opportunities
Very limited number of documents required Residency applications quickly processed
Access to all Portuguese Public Services, including health and education    

Legal Requirements 

Property Investments

  • Minimum investment of € 500,000
  • One or multiple properties
  • All property types qualify
  • Possibility of co-ownership
  • Freedom to use, rent or lease

OR
Capital Investments

  • Minimum investment of € 1 million
  • Transfer of new funds to Portugal
  • Funds transferred to a bank in Portugal
  • Freedom to invest the funds
  • Investment in company share possible

OR
Job Creation

  • Creation of a minimum of 10 jobs
  • No minimum investment value
  • No limitation on areas/activities
  • Compliance with Social Security obligations

General Requirements for all Investments

Investment maintained for a minimum period of 5 years
Funds for investment should come from abroad
Residency application only approved after investment
Entry in Portugal with a valid Schengen visa
Absence of flags in Portuguese Immigration and Schengen services
Absence of conviction of relevant crime
Possibility of grants/incentives/benefits

Source: Neville Rougemont & Associados-sociedade De Advogados – www.ndr.pt

5 Tips for when you considering selling your home

When you are thinking of selling your home, don’t forget these five easy tips to help the process go smoothly…

1. Check the local market to give yourself an idea of what price point you should be at before setting your target selling price. This is best done by consulting the larger housing portals or a local real estate agency to see what similar properties’ asking prices are for the same typology and location.

2. It is vital that you keep your home clean and tidy up properly before receiving potential buyers. Clutter just makes your rooms appear smaller than they really are.  Clear all surfaces and remove as many personal items as you can.  Buyers want to imagine themselves in your home – so make this easy for them.  Many people are buying into a new lifestyle when they are house hunting.  Make your home feel welcoming, fresh and airy.  Open up the windows and allow as much light into each room as you possibly can.

3.  Other small details that will add value to your home when you are selling include touching up paint work where necessary. Always have any brightly coloured walls re-painted in neutral tones when you have your house on the market, it makes rooms look larger and will appeal to a wider audience.  Lift old or dirty carpets & consider small bathroom and/or kitchen updates if needed.  It may help a sale along more quickly! But before you invest in this, check that it will compensate you by knowing what additional value you will gain on the sale price after work is done.

4. As the market has not completely come out of the downturn – due in part to high interest rates and the difficulty in getting bank loans approved – it is necessary to be prudent when setting your target selling price. As there is a lot of offer, a high price may inhibit your best efforts and deter potential buyers.

5. Don’t buy your next home until you have sold the one you own now. You run the risk of not being able to sell yours quickly and may have to accept an inferior price offer in order to conclude a quick sale.

Lastly, make sure you employ a professionally registered estate agent to market your home.  They are trained to offer you the best advice and equipped to handle difficulties that may arise.

We offer a professional appraisal service along with a professional photographic session – call us on +351 21 486 7767 or email: sales@nduni-property.pt to book an appointment for one of our consultants to visit your home and give you a no obligation estimate of your home’s worth.

To see our portfolio of properties visit our us at www.nduni-property.pt

Energy Certificate Information- 7 Questions

It is imperative that you have the energy certificate ready if you wish to sell or rent your home.  Nduni Property Portfolio & Management offer this service so do contact us and we can have it to you in about a week.

Energy Performance Certificate, 7 questions

An Energy Performance Certificate is compulsory from the moment a new or existing property is commercially advertised for sale or rent, directly by the owner or by a real estate agent. This document which attests to the energy grading has to be produced whenever a purchase/sale contract, leasing or rental contract takes place.

What is an energy performance certificate?

It’s a document that evaluates the energy efficiency of the property using a scale from A+(very efficient) to G(poor efficiency), issued by authorised technicians of ADENE(government energy agency). It contains information about characteristics of energy consumption relating to heating of sanitation water. It indicates measures such as the installation of double glazed windows or reinforced insulation amongst others for helping to reduce energy consumption. The document is valid for a period of 10 years.

 

What determines the class of energy?

The location of the property, the year of construction, if it is a building or a home, which floor the property is on and the floor area. The construction materials used for walls, floors, roof, and windows. Finally, the equipment relating to acclimatization (ventilation, heating and air conditioning) as well as producing the heating water for bathing.

 

How to apply?

Get in touch with us by phone +351 21 486 7767 or by email. We will proceed with the application for the certificate once we have all the necessary documents. Once the property has been visited and assessed, the qualified expert will insert the calculated evaluation into the National Energy Certificate and the Quality of the Internal Air in the Buildings.

 

What are the costs?

The costs for the registration and issue of the certificates for a home vary between €135 (Studio to 1 Bedroom) to €165 (more than 6 bedrooms), plus VAT. In the case of commercial and service buildings, it oscillates between €150 (area in use up to 250 m2) to €950 (more than 5000 m2), plus VAT. Add to this value the amount payable to the qualified expert, which is not included. It is advisable to compare prices. Fees can vary substantially depending on the technician, type of property and location.

You could be exempt from taxes in the case of the building already possessing an energy certificate and being in compliance with the indicated stipulations. For this to happen you need to comply with 3 conditions: the original certificate must be less than 10 years old (validation period), the measures taken having improved the energy grade and after its implementation the building obtaining a minimum rating of B-.

How long does it take?

Given that the experts have to handle all aspects of the process, it could take 2 to 3 days and should take not more than a week.

What documents are required?

A copy of the floor plans, “caderneta predial urbana” (which can be printed from the finance portal), “certidão de registo” (available from the “conservatoria”), and habitation license (or other documents with technical specifications of materials used)

How much are the fines?

Individuals in breach are subject to a fine of between 250 and 3740 euros, whereas companies/businesses can be fined between 2500 and 44890 euros.

Contact Nduni today and order your energy certificate – +351 21 486 7767

Non Habitual Resident Tax Regime- Portugal

Non-Habitual Resident’s Tax Regime 

Foreign source income  
Employment Income
High value added activity employment income received by a NHR shall be tax exempt from PIT provided that it is either:

  • Taxed in the source State according to the applicable Tax Treaty; or,
  • If no treaty is applicable, the income is effectively taxed in the source State and not deemed as derived in Portugal in accordance with Portuguese sourcing rules.

Other income
Foreign source capital gains, investment and rental income, together with self-employment and professional income derived from high value added activities, shall be tax exempt from PIT if:

  • the income can be liable to tax in the country of source, according to the applicable Tax Treaty or according to the OECD Model Tax Convention, as interpreted according to the Portuguese comments and reservations made to its articles; and
  • it is not deemed derived in Portugal in accordance with Portuguese sourcing rules nor deemed obtained in a tax haven.


Foreign source pensions

Foreign sourced occupational pensions shall benefit from a tax exemption if they are liable to tax in the source country in accordance with the provisions of a tax treaty or are deemed not to be derived in Portugal in accordance with the Portuguese sourcing rules, i.e., not paid by a Portuguese tax resident entity nor attributable to a Portuguese permanent establishment of a non-resident.  Foreign source occupational pensions may also benefit from a potential double non-taxation should the applicable tax treaty preclude the source country from taxing the pension.(Note that taxing rights in relation to pensions of retired civil servants and other government employees generally are allocated by tax treaties to the paying country, regardless of the residence status of the recipient).

Qualifying for the status  

To qualify as a non-habitual resident, an individual must meet the following requirements:

Be tax resident under Portuguese domestic legislation; and

  • Not have been taxed as a Portuguese resident in the five years prior to taking up residence in Portugal. An individual is tax resident in Portugal for any year in which:
  • He is physically present in Portugal for more than 183 days in a calendar year; or
  • On December 31 of the relevant tax year, he has available accommodation in Portugal as an habitual abode.

Necessary documents and requirements
Recognition of this status is not automatic, and requires activation by attending to the following formalities:

  • Copy of the individual’s passport;
  • An address in Portugal;
  • Application for a Portuguese taxpayer number;
  • Certificates of tax residence from the countries in which the individual was resident for tax purposes during the five years prior to his arrival in Portugal;
  • Tax assessments showing that the individual was effectively taxed in the foreign country(ies) during that five year period;
  • Filing a formal request.

Other documents will be required if the individual is an employee or is self-employed rendering services eligible as derived from a high value added activity.
Copies of original documents must be notarized before being submitted.

Other considerations

Wealth taxes
Portuguese tax law does not envisage wealth taxes. Only local taxes on Portuguese real estate apply (as described below).   Municipal Property Transfer Tax Portugal levies a municipal tax on the acquisition of Portuguese properties at rates between 0 and 6%.

Municipal Property Annual Tax

Portugal levies a municipal tax annually based on the registered value of Portuguese real estate at rates between 0.4 and 0.8% (depending on the municipality and the type of real estate –buildings or land).

Inheritance tax

Inheritance tax on Portuguese assets is levied as Stamp Duty at a 10% rate except for spouses, descendants and ascendants, who are exempt.

Gift tax

Gift tax on Portuguese assets is levied as Stamp Duty at 10% rate except for spouses, descendants and ascendants, who are exempt. An additional rate of 0.8% is due on gifts of real estate.

Fees   

Fees for the regular services can be sent on request.

Legal notice   

Please note that this brochure is a brief introduction to possible tax consequences associated with a move to Portugal. It is intended only to be summary and simplifications have therefore been made. We strongly advise that individual advice be obtained before

Sources:
Deloitte
PricewaterhouseCoopers & Associates Information Flyer

Regime fiscal para Residentes Não- Habituais

Regime fiscal para Residentes Não- Habituais

 

Rendimento proveniente do estrangeiro

Rendimento de Emprego

Rendimento proveniente de funções de elevado valor acrescentado por indivíduos residentes não-habituais será exempto de Imposto sobre o Rendimento de Pessoas Singulares se:

For taxado no país de origem nos casos em que existe acordo fiscal em vigor.

For efetivamente taxado no país de origem e nos casos em que não existe acordo fiscal em vigor, não for reconhecido como proveniente de Portugal de acordo com as regras Portuguesas que estabelecem a fonte de rendimento.

 Outro Rendimento

Rendimento proveniente do estrangeiro derivado de ganhos de capital sobre investimento ou imobiliário ou empregado por conta própria, será exempto de Imposto sobre o Rendimento de Pessoas Singulares se:

O rendimento for qualificado como taxável no país de origem, de acordo com o acordo fiscal em vigor ou de acordo com a Modelo de Convenção de Impostos da OECD respeitando os comentários e clausulas feitas pelas entidades Portuguesas

Não for reconhecido como proveniente de Portugal ou de ‘Paraísos Fiscais’ de acordo com as regras Portuguesas que estabelecem a fonte de rendimento

Pensões de Reforma

 

Rendimentos obtidos por pensionistas e reformados no estrangeiro serão exemptos de imposto se forem tributados no país de origem de acordo com as provisões estabelecidas no acordo fiscal em vigor ou não reconhecidos como proveniente de Portugal de acordo com as regras Portuguesas que estabelecem as fontes de rendimento, i.e., que o rendimento não seja pago por uma entidade com residência fiscal em Portugal nem atribuído a morada permanente fiscal de individuo não-residente. Pensionistas e reformados poderão tirar partido de uma dupla exempção se o acordo fiscal não permitir ao país de origem a tributação do imposto (Note que os direitos fiscais sobre pensões de reforma atribuídos a funcionários públicos e outras entidades governamentais são geralmente referenciados em acordos fiscais no país de origem, independentemente do estatuto de residência)


Requisitos de qualificação para o estatuto

Para se qualificar ao estatuto de residente não-habitual, os seguintes requisitos terão de ser preenchidos:

Ter o estatuto de residente fiscal de acordo com a legislação Portuguesa e ainda:

  • Não ter sido residente em Portugal nos últimos 5 anos
  • Ter permanecido em Portugal mais de 183 dias, seguidos ou interpolados; ou
  • Tendo permanecido por menos tempo, aí disponha, em 31 de dezembro desse ano, de habitação em condições que façam supor a intenção de a manter e ocupar como residência habitual

Documentação necessária

O reconhecimento do estatuto não é feito de forma automática e a sua ativação requere os seguintes documentos:

  • Cópia do Passaporte;
  • Endereço de morada em Portugal;
  • Candidatura ao registo para atribuição de número de contribuinte;
  • Comprovativo, para propósitos fiscais, de residência fiscal válido para os últimos cinco anos até à entrada em Portugal;
  • Comprovativo fiscal de efetiva tributação no(s) país(es) de origem durante o período mencionado (cinco anos);
  • Preenchimento do respetivo documento de candidatura;

Outros documentos serão necessários se o individuo for trabalhador independente ou dependente num sector de atividade de elevado valor acrescentado.

As respetivas cópias dos documentos originais deverão ser autorizadas no notariado para que sejam validadas.

 

Outras Considerações

Imposto sobre fortunas

O regime fiscal em vigor não inclui imposto sobre fortunas. São aplicados apenas os impostos municipais sobre património. (como descrito abaixo). O imposto municipal sobre a transferência de imoveis contempla um imposto entre 0% e 6% sobre a aquisição de imoveis em Portugal.

Imposto Municipal de Imoveis (IMI)

O imposto municipal sobre imoveis é anual e é baseado sobre o valor registado de todos os imoveis em Portugal. As taxas de imposto estão compreendidas entre 0.4% e 0.8% de acordo com o município e o tipo de propriedade.

Imposto de Heranças

O imposto de heranças sobre ativos em Portugal é tributado a 10% exceto no caso de conjugues, descendentes e ascendentes diretos que estão exemptos.


Imposto sobre Doações

O imposto de heranças sobre ativos em Portugal é tributado a 10% exceto no caso de conjugues, descendentes e ascendentes diretos que estão exemptos. Uma taxa adicional de 0.8% é atribuída a doações de património.

Custos de Serviço

 

A descriminação das nossas taxas é feita de acordo com a seguinte lista:

  • Reunião inicial sobre assuntos fiscais – 500€
  • Candidatura ao número de contribuinte Português- 300€/contribuinte
  • Nomear/Cancelar um representante fiscal – 300€/contribuinte
  • Registo de morada – 300€/contribuinte
  • Preparação e preenchimento da documentação para candidatura a estatuto de residente não-habitual- 1,000€/ pedido
  • Preparação e preenchimento da documentação para retorno de Imposto sobre o Rendimento (submetido online) – 1,900€/ pedido (conjugues enviam documentação conjunta)
  • Registo no Portal das Finanças – 250€/ contribuinte (necessário para o envio da documentação de imposto)

Os custos acima mencionados não incluem IVA nem quaisquer outras despesas ocorridas que sejam da responsabilidade dos clientes.

Aviso Legal
A informação aqui apresentada é uma introdução às consequências fiscais associadas a uma mudança de residência para território Português. É somente um resumo simplificado e não despensa a consulta da legislação aplicável.

Fontes:
Deloitte
PricewaterhouseCoopers & Associates Information Flyer

Visto Gold

Programa ‘Visto Gold’
O programa ‘Visto Gold’ estabelecido pelo Governo Português é uma via rápida para que investidores possam obter um visto de residência em Portugal e consequentemente ter acesso à grande maioria de países pertencentes à União Europeia (espaço Schengen).

Com o objetivo de atrair investimento estrangeiro a Portugal, o programa ‘Visto Gold’ guia e simplifica o processo legal de obtenção de visto. É atualmente um dos programas mais atrativos a nível mundial devido ao reduzido número de dias de residência exigidos.  Está agora disponível para investidores a oportunidade de comprar a casa dos seus sonhos em Portugal e ter até 6% de retorno no capital investido. Descubra como obter um passaporte da UE em 6 anos ao investir em imobiliário em Portugal. Estamos sedeados em Cascais, ao longo da costa de Lisboa, e estamos disponíveis para o aconselhar num bom investimento imobiliário com potencialidade para o mercado de arrendamento para que facilmente atinja o maior retorno possível.

Investimento Necessário

(Apenas uma das opções apresentadas é necessário para satisfazer os critérios)

CAPITAL – Transferência de fundos no valor igual ou superior a 1,000,000€

IMOBILIARIO- Compra de uma propriedade no valor igual ou superior a 500,000€

EMPREGO- Criação de 10 postos de trabalho.

Vantagens e Benefícios do programa ‘Visto Gold’
Requisitos de investimento simples e flexíveis

Mínimo número de dias de permanência – 7 durante o primeiro ano e 14 durantes os dois anos seguintes

Extensível efetivamente para o aglomerado familiar (sem demais requisitos)

Liberdade de viajar para todos os países Europeus que sejam membros do acordo Schengen

Possibilidade de Visto de Residência após 5 anos e Nacionalidade após 6 anos

Sem restrições no direito da propriedade para o investidor

Sem restrições em futuros investimentos ou oportunidades de emprego

Acesso a todos os serviços públicos Portugueses, incluindo saúde e educação
 

 

 

 

Requisitos Legais


Investimentos de Imobiliário

  • Investimento mínimo de 500,000€
  • Uma ou mais propriedades
  • Qualquer tipo de propriedade é permitida
  • Possibilidade para diversos proprietários
  • Liberdade para usufruto ou arrendamento

OU
Investimentos de Capital  

  • Investimento mínimo de 1,000,000€
  • Transferência obrigatória de capital para Portugal
  • Fundos transferidos para uma conta bancaria em Portugal
  • Sem restrições na gestão do capital
  • Possibilidade para investimento em bolsa (ações)

OU
Criação de postos de Trabalho

  • Mínimo de 10 postos de trabalho
  • Sem restrições no valor de investimento
  • Possibilidade de investimento em qualquer sector de atividade
  • Necessário cumprimento das normas exigidas pela Segurança Social
  • Aplicam-se os requisitos gerais de Investimento em vigor

Investimento mantido por um período mínimo de 5 anos

Fundos investidos terão obrigatoriamente de ser transferidos do estrangeiro

Candidatura a visto de residência fica dependente da aprovação do investimento

Entrada em Portugal com um visto do espaço Schengen válido

Cadastro limpo nos serviços de Emigração Portugueses e entidades responsáveis pelo espaço Schengen

Cadastro criminal limpo

Possibilidade de bolsas/incentivos/benefícios
Fonte: Neville Rougemont & Associados- sociedade de advogados – www.ndr.pt