Financial advice in Portugal
Latest articles about Financial advice in Portugal
The electricity bill is one of the most costly charges for households in Portugal, but the good news is that the amount to be paid will fall for the third consecutive year.
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But what does this mean?
Natural gas prices in Portugal will drop from 1st October 2019. Rates will drop by 2.2% for the 277,000 consumers that remain in the regulated market, which represents about 3% of the total national consumption.
At a time in which banks seems to be more open to loaning money to buy properties, there are some nearly incomprehensible terms in the wording of mortgage loans which need to be decoded.
House prices in Portugal continue to rise, albeit at a slower pace. The International Monetary Fund (IMF) is aware of this, of course, but rejects suggestions that the government need intervene – at least for now – since "most real estate transactions have not been financed with mortgages".
If you have a second house in Portugal, it may often necessary to send money there to pay for bills, taxes and other living expenses, but it’s sometimes difficult to know how to do it, whether with banks or with money transfer companies.
Home loans (and other types of loans) are becoming more and more complex, with contracts written in excessively technical language that seems like it’s deliberately difficult for the consumer to understand, so you can’t make a truly informed decision between different banks and compare their mortgag
The difference between buying a house in Portugal being a resident or not depends on the purpose of the house. If you buy a house to live in Portugal, you are buying a permanent home and are a resident, but if you do not live in Portugal and you buy property there it will count as a second home.
Property owners in Portugal who take out home contents insurance cannot deduct it from their property income when they file their IRS income tax returns, because it is considered to be an optional extra by the tax authorities.
The Addition to the Municipal Property Tax (Adicional ao Imposto Municipal de Imóveis or AIMI) is, as the name implies, a tax levied on real estate assets. It was created relatively recently, in 2017, and many property owners in Portugal don’t know they have to pay the AIMI.
Are you going to change houses, selling one and buying another, but are worried about the capital gains tax to be paid?
The Portuguese Tax Authority (Autoridade Tributária or AT) closed 2018 with a cash inflow of 31.5 million euro from revenue from the Municipal Property Tax (Imposto Municipal sobre Imóveis or IMI) paid on dilapidated, vacant or ruined property.