zooming up

[nightrider]

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.

You are not correct with regard C.G's and I would strongly suggest you get some independent advice from a reputable financial company such as Sovereign at Lagoa. I.e. you are not a resident in Portugal and the roll-over rule will not apply to you.

I understand that you have purchased a plot of land from a builder and hope to have a villa built by him. If this is correct I would strongly urge you to have a contract drawn up by an independent lawyer, and most definately not one in anyway connected to the builder. The contract should clearly set out the stage payments and a penalty for not completing on time. At the very moment you hand over a stage payment you must obtain from the builder a factura clearly displaying his Alvara and Fiscal Number and keep these receipts safe together with the Deed which should display the actual amount that you paid inclusive of the IMT/SISA tax for the land. When the builder has completed his works, he should arrange to notify the Camara, who issue a Habitation/Usage Licence and the property is registered at both the Finances and Land Registry Departments. You must ensure that you receive a Certified Land Registry Document and a Certified Caderneta which will give you your new tax number for your villa.
Nightrider

[tbbr]

Clearly have always understood that as a non resident then CG would be applied, the same goes in the UK for any property which is NOT your main residence.

If you are resident in the Algarve,are the rules the same as in the UK,

IE No CG on your principal residence.

AS to your suggestions ref contracts, the BANKS will not advance any monies without the controls you suggest in place.

IE . NO work, NO receipts, NO MONEY so the builder will have to conform. Also the Bank send their own inspector to check.
Basically it is the same as back here in the UK.

[Guest]

TBBR,
Whether you are a resident or non-resident in Portugal C.G's apply on a 1st, 2nd or 3rd etc property but at different rates. In the UK you are exempt from the main residence and than as much as 40%CG's on a 2nd and additional thereafter property.
As I have already advised you, you would be wise to seek financial advice from a reputable company such as Sovereign in Lagoa,whose office is opposite Barclays Portugal.Your comments re borrowing money(mortgage) have been noted.
N.R.

[tbbr]

As a tax treaty exists between UK and Portugal as I understand it and individual can " elect " in which country they pay tax if that country is not their " residence ".
As a UK resident you can also offset any tax paid in Portugal against your tax assesement in the UK so avoiding double taxation.

QUESTION.

Are taxes generally lower in Portugal and if this is the case would it not pay the Portuguese government to publicise this amongst the ex pat and " holiday " home owning communities.

This would generate much needed tax revenue

[Guest]

You pay the tax in the country that you are resident in.(i.e. 91 days in the UK). (Portugal 183 days).
Selling a property in Portugal as a non resident attracts 25% of the total gain less costs, payable to the Portuguese Government and this should be dealt with by the lawyer or whoever is dealing with the sale.
We are not aware that the Portuguese Taxes are lower than the Uk.
UK allowances are better than here in Portugal.

At the moment the double taxation between Portugal and the UK (and other countries in the EU) does not permit a main residence in Portugal to be rolled over to a purchase and a main residence in the UK or any other EU country. As I understand it this matter is presently being looked at.
Maybe someone like Biffa may have more up to date information on this.

With respect TBBR, by what you keep ansking on this forum, that you really should take advice from experts in the UK and here in Portugal.

[Guest]

You pay the tax in the country that you are resident in.(i.e. 91 days in the UK). (Portugal 183 days).
Selling a property in Portugal as a non resident attracts 25% of the total gain less costs, payable to the Portuguese Government and this should be dealt with by the lawyer or whoever is dealing with the sale.
We are not aware that the Portuguese Taxes are lower than the Uk.
UK allowances are better than here in Portugal.

At the moment the double taxation between Portugal and the UK (and other countries in the EU) does not permit a main residence in Portugal to be rolled over to a purchase and a main residence in the UK or any other EU country. As I understand it this matter is presently being looked at.
Maybe someone like Biffa may have more up to date information on this.

With respect TBBR, by what you keep asking on this forum, you really should take advice from experts in the UK and here in Portugal.

[Guest]

Sorry the above was me correcting my post Nightrider.