Offshore companies registered in black-listed jurisdictions

 

(see Appendix A)

Offshore companies, registered in a country or territory included in the Portuguese black-list of tax havens, are taxed at a penal 1% IMI rate.

All companies registered in jurisdictions not included in the Portuguese black-list are taxed at the normal rates, as stated in IMI Table 3.

Note that IMI is levied according to the taxpayer’s situation on the last day of the tax year (31st of December).

Consequently, if a company re-domiciles from a black-listed to a non black-listed jurisdiction, it should ensure the redomiciliation is registered at the Tax Office before the 31st December, in order to avoid the penal taxation in the following tax year (since IMI is paid in arrears).

 

How and when should IMI be paid?

Your fiscal representative will receive from the tax office a notification referring to the payment of IMI. The notification states, amongst other things, the identification number of the properties which are subject to taxation, their respective VPT and the corresponding amount of tax to be paid.

If by any reason this notification is not sent or received, a copy will be requested by your fiscal representative at the local tax office.

IMI is paid in two equal instalments, in April and September. However, if the total annual tax is less than 250€, IMI will be due in a single instalment in April.

Interests will be debited if the IMI is not discharged within the legal timeframe.

Note: The timeframe between the date of receipt and payment is usually quite short. In order to avoid delays and penalties, it is imperative clients react promptly and make the due IMI funds available to the Fiscal Representative.

 

How does Tax Inspection regarding IMI work?

 

Tax inspection is very effective, as described below in a few control mechanisms implemented by the Portuguese Revenue.

All entities that intervene in acts and contracts related to the constitution, transmission or registration of any rights concerning properties (such as banks, notaries, land registry office, courts of law, etc) must ask for a registration certificate from the local tax office, or alternatively a statement that proves a registration has been filed.

The entities supplying utilities, such as water, electricity and telephone must, until 31st July and 31st January of each year, inform to the Portuguese Revenue, of any contract to supply main utilities/services.

The Town Halls must provide information to the Portuguese Revenue of the approval of master plans, construction projects, construction licenses, demolition licenses and so forth.

 

 



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