IT
– Property Income made by non-residents
Number 1 of
article 51st
of the CIRC refers
that “Incomes not ascribable to branches situated in a
Portuguese territory, derived from non-resident
companies or other entities, are established according
to the rules laid down for the corresponding categories
for IRS purposes”.
And n.º 2 of the
same article sets down that for town properties not
leased or not meant to a business activity and which are
held by entities with domicile in a
country, territory
or region subject to a tax system clearly more favourable
and appearing in the list approved by the order of the Chanceller of Exchequer, the amount corresponding to
1/15 of the taxable value is considered as property net
income regarding the taxable period, for the purposes of
the previous paragraph.
That is to say,
when the property is owned by an offshore company and is
not related to a tourist lease activity, this one is
compelled to declare every year a presumed income in the
amount of 1/15 of the taxable value.
Some people consider
that a property registered as "Local Accommodation" (Alojamento Local) is considered a “branch”
(Estabelecimento estável), having to be
taxed according to the legal status of its owners: IRS
(natural persons) or IRC (corporate bodies).
Our opinion is different.
Thus, the owner
must submit the start-up of the activity in IRS or IRC.
Besides this,
one should take into account the
Information n.º 941/94
of the IR, which clears up what can be considered as
“maintenance and preservation” expenses and details the
expenses that can be considered as: “maid and gardener
wages, electricity, water, gas, repairs, painting,
insurances and property management... since they are
essential to get the revenue”.
In our opinion,
the expenses related to the lease(s) period(s) should be
the ones to be taken into account.
Pursuant to
n.1
of article 72nd of the CIRS and
paragraph f),
n.º2, article 80th of the CIRC, non-residents
(as well as the residents) are taxed to the rate of 15%.
It must also be
noted that property incomes, when put at the disposal of
the owner by an entity with an organized accounting
scheme, are subject to 15% of withholding tax.
The owners with the head
office or residence in Portugal can choose the exemption
of the withholding tax until reaching the amount of €
9.975,96 (Art. 9th,
of the
Decree-Law 42/91, of 22nd January).
Personal Income Tax Code
.
This note is
only for information and does not hold its divulgers
responsible. For thorough information you must consult
the Law.
