TAX Declaration, how easy DIY?

[steve]

Call me cynical but it also provides a very nice audit trail for the Finanças so that they can check whether fees for acting as a fiscal rep have been properly declared for tax purposes.

[joeysoap]

It is not the Câmara who send these demands but rather the tax department and - ye - they are coming out thick and fast and some are wrongly charged!

thanks for reply Biffa, but wondering how they can be wrongly charged? do they use their own figures for valuation? or apply the incorrect % tax wise? no word yet from my FR (if something isn't broke don't fix it, so won't be contacting them for bad news) but not doubt they will be in touch soon.


Hi Licy,
thank you and wish you and yours the best of health and happiness to enjoy your new villa when its complete (following your posts on this forum) hopefully later this year.

[biffa]

They mistakenly charged some offshore properties at 2% instead of 1% but have now rectified that it seems.

For 2011 (payable in 2012) the IMI for offshore "blacklisted" held property will go back to 5% !

The government don't seem to have a clue what they are doing! Blacklisted properties went up from normal rates to 2% in 2003, then up to 5% in 2005, back to 1% in 2007 and now back to 5% in 2011.

To attract foreign investment you need stability and certainty not a Finanças being run by headless chickens.

[joeysoap]

got my first tax bill today! not normally something to cheer about but was very pleasantly surprised to find its just over €300 for the whole year. I thought it would be much more. ( hopefully nobody from the Portugese tax office reads this )

[biffa]

Here is how you calculate your IMI

Multiply the tax dept valuation (the VT) by the % shown below alongside your council area (Lagoa for most cvo.com users so that is 0,680%))

The first % column is for older houses not yet valued under the new valuation scheme (CIMI), the middle is for those new or revalued properties and the last is for rustic land.

Didn't have time to make the table look any better!

Código Municipio Município
Prédios Urbanos Prédios Urbanos:Avaliados nos Termos do CIMI: Prédios Rústicos
0801 ALBUFEIRA 0,600 % 0,400 % 0,80 %
0802 ALCOUTIM 0,700 % 0,400 % 0,80 %
0803 ALJEZUR 0,700 % 0,400 % 0,80 %
0804 CASTRO MARIM 0,700 % 0,400 % 0,80 %
0805 FARO 0,700 % 0,400 % 0,80 %
0806 LAGOA (ALGARVE) 0,680 % 0,380 % 0,80 %
0807 LAGOS 0,700 % 0,400 % 0,80 %
0808 LOULE 0,680 % 0,360 % 0,80 %
0809 MONCHIQUE 0,400 % 0,200 % 0,80 %
0810 OLHÃO 0,700 % 0,400 % 0,80 %
0811 PORTIMÃO 0,700 % 0,400 % 0,80 %
0812 S. BRAS DE ALPORTEL 0,700 % 0,400 % 0,80 %
0813 SILVES 0,650 % 0,350 % 0,80 %
0814 TAVIRA 0,700 % 0,400 % 0,80 %
0815 VILA DO BISPO 0,600 % 0,300 % 0,80 %
0816 VILA REAL DE SANTO ANTONIO 0,700 % 0,400 % 0,80 %

[joeysoap]

thanks Biffa,
yes, the rate they used in my case was 0.38 and charged this amount seperately on 3 items, presumably pool, playground and apt as all 3 seperate. I was assuming as they knew the purchase price (from notary)this was the figure they would use, however they obviously have their own method of valuation and they used a lower figure than I anticipated, so pleasant surprise.

[biffa]

Yes, the price paid has no bearing on the tax departmnet valuation which is based on several factors such as location and local amenities, age, quality of construction etc

[LICY]

Yes, the price paid has no bearing on the tax departmnet valuation which is based on several factors such as location and local amenities, age, quality of construction etc

How do they tax on a new build that you build yourself? Is it what the builder charged to build? If it is mine is somewhat complicated as one builder failed to finish but charged and kept loads of our money. licy

[biffa]

Licy

On completion of the property a Form 1 has to be submitted to the tax department. This would often be done by the buildre or a lawyer or profect supervsr etc. This form gives full details of the property upon which the tax department raise a tax value based on it and inform you (or your fiscal rep) of that value. If you builder never finished who signed off on the build? Have you got a habitation licence from the local council?

[joeysoap]

Licy
Have you got a habitation licence from the local council?

we waited months for this. apt completed but solicitor would/could not go ahead with final deeds until the habitation licence was obtained. as in your case Licy the original builder stopped work and the project was completed by a different builder ( to a higher standard I am informed by a person who maintains properties in the area )

[LICY]

Licy
Have you got a habitation licence from the local council?

we waited months for this. apt completed but solicitor would/could not go ahead with final deeds until the habitation licence was obtained. as in your case Licy the original builder stopped work and the project was completed by a different builder ( to a higher standard I am informed by a person who maintains properties in the area )

That is interesting. i wonder if it was the same builder. Do PM me. I hope our new builders are better than our first, not only in the manner they conduct themselves, but hopefully the end product. Our lawyer is the fiscal rep so I guess it will be sorted by him or the builder. how did they work out your ratable/taxable value though?

[Bruce Wallis]

Licy
Have you got a habitation licence from the local council?

we waited months for this. apt completed but solicitor would/could not go ahead with final deeds until the habitation licence was obtained. as in your case Licy the original builder stopped work and the project was completed by a different builder ( to a higher standard I am informed by a person who maintains properties in the area )

That is interesting. i wonder if it was the same builder. Do PM me. I hope our new builders are better than our first, not only in the manner they conduct themselves, but hopefully the end product. Our lawyer is the fiscal rep so I guess it will be sorted by him or the builder. how did they work out your ratable/taxable value though?

erhhhhhhh....like they do their building estimates.......

Think of a number.....double it.......then if you are English....add a nought

[LICY]

So you are saying or guessing they take no notice what you paid. Can't think ours will be worth what we forked out with the tate of the economy.

[biffa]

The tax value is based on very well defined factors but has no relationship to market value nor does it come close to it.

[LICY]

The tax value is based on very well defined factors but has no relationship to market value nor does it come close to it.

just realized I did not respond. the villa is being built so no we don't have a habitation license, but guess we may before the end of the year. having said that if they take as long as they did to allow us an extension to the expired license and then provide the paper one we may have to wait to summer /autumn 2012. Does that mean we will save money by only having to pay the land tax? LICY