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zooming up
zooming up
a neighbour has recently had a rates revalauation....his rates have gone up from something like 300 a year to 900 (although there is supposed to be a yearly capping system - he writes hopefully) 
so yesterday a registered letter arrived for me ..had to drive to messines to collect it ....anyway it seeems my valor partrominal has gone up from 29000 to 82000 ..which if I am correct means that from having paid 150 a year I now have to pay 600...very kindly they have given me a discount as we do not have the "luxury" of mains water or mains sewage or a tarmac road.
I wonder how with supposed infation at 2 or 3 per cent things can go zooming up like this..but then of course I remembered its a govt tax ..they can do what they like.
no doubt all this will help the economy grow..or will it?
so yesterday a registered letter arrived for me ..had to drive to messines to collect it ....anyway it seeems my valor partrominal has gone up from 29000 to 82000 ..which if I am correct means that from having paid 150 a year I now have to pay 600...very kindly they have given me a discount as we do not have the "luxury" of mains water or mains sewage or a tarmac road.
I wonder how with supposed infation at 2 or 3 per cent things can go zooming up like this..but then of course I remembered its a govt tax ..they can do what they like.
no doubt all this will help the economy grow..or will it?
Let us hope this money finds itself it the right places. 
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Guest
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nightrider
But on the otherside of the coin my husband and I are aware that our rates since we purchased some 5 yrs ago are considerably higher than our friends and others here in the Algarve and we live in the countryside and therefore with very few basic amenities.
However, I have to say that after purchasing our new villa and pre 1951 cottage on the same land and fed up with asking the supposidily firm of associate lawyers in Lagoa to deal with this matter....I personally, and with Bruxy(who speaks Portuguese) went down to Silves Finances Dept to arrange for this dept to visit our property.... in order to value it etc. After the inspection in 2002, we eventually received our rates bills, some back dated. We are fully aware now, why and what should have been the normal duty/procedure of both the lawyer, the builder, his lawyer etc etc which of course means the updating and also in our case the issuing of a new caderneta (rates document) for our new villa...but that's another story.
Some of our friends presently, are paying as little as 10 Euros and others none at all. So my comment has to be fairs fair, we should all contribute in a fairer way and I can only pray, that in someway it will filter through to the Portuguese and improve many of their lifestyles, which we English and others take for granted.
Nightrider
However, I have to say that after purchasing our new villa and pre 1951 cottage on the same land and fed up with asking the supposidily firm of associate lawyers in Lagoa to deal with this matter....I personally, and with Bruxy(who speaks Portuguese) went down to Silves Finances Dept to arrange for this dept to visit our property.... in order to value it etc. After the inspection in 2002, we eventually received our rates bills, some back dated. We are fully aware now, why and what should have been the normal duty/procedure of both the lawyer, the builder, his lawyer etc etc which of course means the updating and also in our case the issuing of a new caderneta (rates document) for our new villa...but that's another story.
Some of our friends presently, are paying as little as 10 Euros and others none at all. So my comment has to be fairs fair, we should all contribute in a fairer way and I can only pray, that in someway it will filter through to the Portuguese and improve many of their lifestyles, which we English and others take for granted.
Nightrider
Rates
Is this the NEW tax value based on the new rules Martin? Did you get a print out showing how it was achieved?
Even if the rateable value has zoomed up under this new system, there are two factors to be aware of. The first is that you will now pay a maximum of 0,5% of that value rather than a maximum of 0,7% that was levied on the intermediate "uplifted value" in 2004 and also there IS a capping procedure which means your rate payable can only increase by a maximum of 80 euros the first year.
Experience is showing that the hoped for tax value of 60 - 80 percent of market value is not being achieved.
Even if the rateable value has zoomed up under this new system, there are two factors to be aware of. The first is that you will now pay a maximum of 0,5% of that value rather than a maximum of 0,7% that was levied on the intermediate "uplifted value" in 2004 and also there IS a capping procedure which means your rate payable can only increase by a maximum of 80 euros the first year.
Experience is showing that the hoped for tax value of 60 - 80 percent of market value is not being achieved.
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Guest
well biiffa
the previous vp was 20973 plus rustic element of 163
which in actual money terms meant 169.11 a year
since buying the house they have decided that there is no rustic element
and thus I have now this received this calculation which (hope it means something to you) is about as clear as mud
what i would like to know is what all this means in terms of actual cash to be paid out - our next door neighbour has now also received his registered letter
(can you send them back and say... no thanks I dont want to join?)
anyway here is what was on the form
vi -81860 = vc - 612.50 x a - 216090 x ca - 1.00 x ci .70 x cq .93 x cv .95
martin
the previous vp was 20973 plus rustic element of 163
which in actual money terms meant 169.11 a year
since buying the house they have decided that there is no rustic element
and thus I have now this received this calculation which (hope it means something to you) is about as clear as mud
what i would like to know is what all this means in terms of actual cash to be paid out - our next door neighbour has now also received his registered letter
(can you send them back and say... no thanks I dont want to join?)
anyway here is what was on the form
vi -81860 = vc - 612.50 x a - 216090 x ca - 1.00 x ci .70 x cq .93 x cv .95
martin
IMI
Rustic values haven't changed so presumably you will still get a very small IMI bill for that part based on old value.
The figure of 81,860 is the new Vp (rateable value) calculated from build cost times build area and added or subtracted to by things like location, age, quality amenities etc.
Thus you should pay around 0,5% of €81,860 or about €409 per year. As this is more than you paid previously you should be capped to a €80 increase per year over and above what you were paying. This capping will go on in increasing increments for 5 years (I think - not in office so can't check!) and after this "parachute" period you will start to pay the €409 unless there have been inflationary increments in the meantime, which is the plan.
You can protest about a valuation within 30 days of receiving it.
The figure of 81,860 is the new Vp (rateable value) calculated from build cost times build area and added or subtracted to by things like location, age, quality amenities etc.
Thus you should pay around 0,5% of €81,860 or about €409 per year. As this is more than you paid previously you should be capped to a €80 increase per year over and above what you were paying. This capping will go on in increasing increments for 5 years (I think - not in office so can't check!) and after this "parachute" period you will start to pay the €409 unless there have been inflationary increments in the meantime, which is the plan.
You can protest about a valuation within 30 days of receiving it.
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Guest
thanks biffa
after buying the house the geographic body or some other folk came and rezoned the property from part rustic to all urban ..so the rustic element should now have disappeared.
so 400 something it is....oh well lets hope they name a road after me in silves
howsabout .... santa martin do obigado pagamento grande impostas
ps when I become mayor I will name a square after you...errm... santa biffa do lado...is that ok?
mayor martin
after buying the house the geographic body or some other folk came and rezoned the property from part rustic to all urban ..so the rustic element should now have disappeared.
so 400 something it is....oh well lets hope they name a road after me in silves
howsabout .... santa martin do obigado pagamento grande impostas
ps when I become mayor I will name a square after you...errm... santa biffa do lado...is that ok?
mayor martin
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nightrider
For the record 400Euros for some is just ONE payment per annum here in the Algarve.tbbr wrote:Assume we are talking about the equivalent of council tax in the UK.?
400 euros is £280, here in somerset that is LESS than 2 months payments.
OK so we are not comparing apples with apples but from what I have seen and what services you get in the UK sometimes " don,t complain too hard.
N.R.
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Guest
yes while you think its not too much...here at our villa we have no tarmac roads no mains water (although aquas alagrave have sunk numerous borehole -300 metres deep to take all the water away)..erm no mains drainage...there is one bus a day ..no street lighting...in fact the junta who are supposed to grade the road performed this civic duty 8 years ago.
so yes 400 might not seem much but then I dont get much back in return either.
ps dont forget when the house was sold the owner had to pay capital gains tax and we had to pay almost 12000 "cesar" tax. and also 3000 euros (tax?) to the notary
so yes 400 might not seem much but then I dont get much back in return either.
ps dont forget when the house was sold the owner had to pay capital gains tax and we had to pay almost 12000 "cesar" tax. and also 3000 euros (tax?) to the notary
WE too do not have street lights and an indifferent bus service.
Our council tax I estimate is over 4 times the equivalent rate in Portugal.
Understood also that capital gains is not levied in Portugal if like in the UK it is your main residence ?
In the UK when buying a property we have stamp duty which as many will know can be many, many thousands of pounds.
I am sure there is someone out there who can comment on the comparison between taxes in the UK and in Portugal.
Our council tax I estimate is over 4 times the equivalent rate in Portugal.
Understood also that capital gains is not levied in Portugal if like in the UK it is your main residence ?
In the UK when buying a property we have stamp duty which as many will know can be many, many thousands of pounds.
I am sure there is someone out there who can comment on the comparison between taxes in the UK and in Portugal.
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nightrider
"On the sale of individual's real estate that was used as the vendor's residence, If the proceeds are invested in the purchase of alternative real estate for a residence within a short period as defined in law, the capital gain is exempt from tax".tbbr wrote:Understood also that capital gains is not levied in Portugal if like in the UK it is your main residence ?
I believe the rollover period is 2 years. However, if you don't reinvest the money in Portugal then CGT is due. At the moment you can't reinvest in another country in Europe.
I believe it to be 25% of the whole amount of the gain for a non-resident by the way.