TAXES AND FEES


Property/ Real Estate Exemption of IMT Purchase Tax:

Urban or residential property valued up to €115.509 Euros is exempted from paying the IMT Tax for permanent residents.

A table of IMT PURCHASE TAX for 2012 may be viewed below of the Madeira Real Estate for Permanent Residents.

(People who reside in Madeira Island for 6 months and more during the year)

 Value of Residential Property

  % Tax

Deductible Amount 

Up to €115.509

0%

€0.00

 From €115.509 up to €158.004

 2%

 € 2.310,18

 From €158.004 up to €215.435

 5%

 € 7.050,29

 From €215.435 up to €359.016

 7%

 € 11.358,99

 From €359.016,25 up to €717.903,75

 8%

 € 14.949,15

 Over and above €717.904

 6% ONLY

€0.00 

For Example:  For a property price of €150,000 00:

€ 150.000,00 x 2 %  =  € 3,000.00

€ 3,000.00 - € 2,310.18 =  € 689.82 IMT Tax payable

Table of IMT Purchase Tax for 2012 on Madeira Real Estate for Non-Permanent Residents

(People who reside in Madeira Island for less than 6 months in the year)

 Value of Residential Property

  % Tax

 Deductible Amount  from % Tax 

Up to €115.509

1%

€0.00

 From €115.509 up to €158.004

 2%

 € 1.155,09

 From €158.004 up to €215.435

 5%

 € 5.895,20

 From €215.435 up to €359.016

 7%

 € 10.203,90

 From €359.016 up to €688.544

 8%

 € 13.794,06

 Over and above €688.545.00

 6% ONLY

€0.00 

For Example:  For a property price of €150,000 00:

€ 150.000,00  x  2 %  =  € 3,000.00

€ 3,000.00 -  € 1,155.09 =  € 1,844.91 IMT Tax payable

Stamp Duty - 0.8% Calculated on the purchase price of your residential property/Real Estate when purchasing in Madeira.

Annual Municipal Tax On Property Real Estate Madeira- IMI Tax

 

Since January 2004, annual taxes on property are now called IMI (Imposto Municipal sobre Imóveis) and is calculated on a market related evaluation by the municipality where the property is located.

-Rustic and Agricultural land - 0.8%

-Urban (houses, construction, land) - 0.4%  to  0.8% (Funchal = 0.8%)

-New property registered after 13/11/2003 - 0.2 to 0.5% (Funchal = 0.35%)

Example:  New property with a value of €125.000 will be subject to an annual tax of €437.50.

Residential property valued up to €225.000 may be exempted for 3 - 6 years.

Property owners of older properties can contest the new valuation and demand a re-valuation and if necessary, impose legal action.

 

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