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Financial section
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Changes in tax treatment of offshore owned property. |
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In January 2002 some changes were made to taxation of “offshore” companies holding property in Portugal. One change meant that as from 1st January 2002, the annual Municipal Tax (Contribuição Autárquica) would be calculated as 2% of the Rateable Value (Valor Tributável
or Valor Patrimonial) of the property concerned.
Additionally, if no rental income is declared by the company, the tax department will presume that income equivalent to one fifteenth (1/15th) of the Rateable Value is received and tax that at the rate of 25%. There is an obligation on the part of the company to submit
an income declaration by the end of May following the year in which income is received or presumed to have been received.
Certain expenses as described below may be set off against declared income to reduce the tax burden. Any such expenses would have to be substantiated by production of invoices and receipts in the company name and with the company fiscal number shown. The following
expenses are acceptable without upper limit;
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MAINTENANCE EXPENSES |
CONSERVATION EXPENSES |
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Energy and maintenance of elevators, lifts and escalators
Doormen
Cleaning
Illumination
Central heating
Air conditioning
Condominium administration
Building insurance
Council tax (Autarquica) |
Repairs
Painting
Substitution of component parts |
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