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Asset Deal

Acquisition of property

• IMT (Property Transfer Tax)

General regime rates (levied on the acquisition value or the taxable value
of the property, if higher):

Urban Properties:

– Permanent residence: from 0% to 6%.

– Other (including commercial property): 6.5%.

Rural Properties: 5%

Transfer of properties to entities resident in tax havens: 10%.

• Stamp Duty

0.8% (levied on the acquisition value or the taxable value of the property, if higher);

2.1.2. Property holding

• IMI (Municipal Property Tax)

General regime rates (levied on the taxable value of the property):

– 0.3% to 0.45% (urban properties).

– 0.8% (rural properties).

Properties owned by entities resident in tax havens: 7.5%

Additional to the IMI (for individuals):

-0.7 % (properties with global taxable value exceeding 600.000€ up to 1.000.000€)

-1% (properties with global taxable value exceeding 1.000.000€)


2.1.3. Rental income

• IRC (Corporate Income Tax – CIT)

Portuguese Resident Company

– Rental income is included in the global taxable income for taxation purposes (please see “profits section” in the point 2.2.2).

Non-resident investor

– Rental income is generally subject to withholding tax at the rate of 25% on the gross amount of the lease income (maintenance and repair expenses, IMI and Stamp Tax payments, are generally deductible).


2.1.4. Sale of Real Estate

• Capital Gains

Portuguese Resident Company

– Capital gains are subject to CIT and are included in the global taxable income (please see “profits section” in the point 2.2.2). In case of reinvestment, taxation may be limited to 50% of the capital gains provided certain conditions are met.

Non-resident investor

– Capital gains are subject to CIT in Portugal.


Share Deal


2.2.1. Acquisition of shares

• IMT/Other taxes

No taxation provided the target company is a joint stock company.

If the target company is a quota company and an interest of 75% or more is acquired, IMT will be levied on the transaction by reference to the percentage of share capital acquired, on the value of the property in proportion to the book value of the total assets of the company.


2.2.2. Operational Activity

• Profits

– CIT: 21%

– Municipal Surtax: 0% to 1,5%

– State

Surtax:

– 3% from €1,500,000 to €7,500,000.

– 5% from €7,500,000 to €35.000.000.

– 9% if higher than €35.000.0000.

• Dividends

Portuguese Company

– 0% (if certain conditions are met) or general CIT regime.

Non-resident investor

– 0% (if certain conditions are met) or general CIT regime (with a possible reduction to a tax rate from 5% to 15% under the relevant Tax Treaty where applicable).


2.2.3. Sales of shares

• Capital Gains

Subject to the general CIT regime

Non-resident investor:

0% (if no taxation is due under the relevant Tax Treaty) or general CIT regime (notably if at least 50% of the company’s assets are comprised of property assets located in Portugal).

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