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Valuation coefficients
Valuation coefficients
The coefficients for the valuation of existing properties have been publshed today and (wait for it) they are just the same as the Devaluation Coefficients that have already been in use for calculating the uplift of escritura values when calculating capital gains tax liabilities.
From where I stand this means that older properties could get hit more than newer ones although of course for the first few years there is a capping mechanism in place (not for offshore!)
Here are the ones that will affect most people I think:
1989 - 1.97
1990 - 1.77
1991 - 1.56
1992 - 1.46
1993 - 1.35
1994 - 1.28
1995 - 1.23
1996 - 1.19
1997 - 1.17
1998 - 1.14
1999 - 1.11
2000 - 1.08
2001 - 1.04
2002 - 1.00
These coefficients will always be applied to the value FIRST recorded at the tax department and that will not necessarily be the present rateable value. To get that first value you may have to visit the tax department and ask them.
If anyone wants to know a coefficient earlier than the above then ask me.
From where I stand this means that older properties could get hit more than newer ones although of course for the first few years there is a capping mechanism in place (not for offshore!)
Here are the ones that will affect most people I think:
1989 - 1.97
1990 - 1.77
1991 - 1.56
1992 - 1.46
1993 - 1.35
1994 - 1.28
1995 - 1.23
1996 - 1.19
1997 - 1.17
1998 - 1.14
1999 - 1.11
2000 - 1.08
2001 - 1.04
2002 - 1.00
These coefficients will always be applied to the value FIRST recorded at the tax department and that will not necessarily be the present rateable value. To get that first value you may have to visit the tax department and ask them.
If anyone wants to know a coefficient earlier than the above then ask me.
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Guest
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Guest
Valuations
Dear Guests
Firts thing to remember is that the tax value has nothing to with either what you paid for the place, what it is now worth or what value was shown on the deed (escritura) when you bought it.
The tax department value (valor tributavel or valor patrimonial VT or VP) is the value the local tax office gave it when it was built. Often that will not have changed but if you later put in a pool or built a garage then it would/might.
For this new valuation sytem you MUST find the FIRST valuation of the property at the tax department and the year that value was given.
Then you take THAT value and multiply it by the coefficient above. So if you have a house built in 1994, given a first value of Escudos35 million (equivalent in Euros now of 175,000 more or less) then you multiply that by 1.28 and your new ratebale value will be Euros223,461 on which you will pay something between 0.4% and 0.8% (probably nearer the top end) per year in rates.
There is then a further complication as if this increases your rate payable by more than a certain amount in the first year then your annual rate payable will be capped. This is to protect large increases.
Is this clear??
Firts thing to remember is that the tax value has nothing to with either what you paid for the place, what it is now worth or what value was shown on the deed (escritura) when you bought it.
The tax department value (valor tributavel or valor patrimonial VT or VP) is the value the local tax office gave it when it was built. Often that will not have changed but if you later put in a pool or built a garage then it would/might.
For this new valuation sytem you MUST find the FIRST valuation of the property at the tax department and the year that value was given.
Then you take THAT value and multiply it by the coefficient above. So if you have a house built in 1994, given a first value of Escudos35 million (equivalent in Euros now of 175,000 more or less) then you multiply that by 1.28 and your new ratebale value will be Euros223,461 on which you will pay something between 0.4% and 0.8% (probably nearer the top end) per year in rates.
There is then a further complication as if this increases your rate payable by more than a certain amount in the first year then your annual rate payable will be capped. This is to protect large increases.
Is this clear??
-
Guest
Tax and WebCams
Understanding the tax is bad enough, fixing the webcam is well out of my range! I was going to pass by the ice cream shop today and I'll ask whats going on.
At least it has stopped raining!
At least it has stopped raining!
Values
Dear Guest
1986 is 2.68
1986 is 2.68