xtonehari

Thurian,

I am giving you an example of an income tax for a rental property. This may give you an idea on how much it may cost you.

The Gross Income is the rent you get per year.

Gross Income from sole trading activity = 4.800,00 €
Total Deductible Expenditure (65% of the Gross Income) = 3.120,00 €
Taxable Income = ----
Reduced amount for being the 1st year of Sole Trading Activity (50%) = ----
Reduced amount for being the 2nd year of Sole Trading Activity (25%) = 1.260,00 €
Annual Income Tax Payable (tax rate: 25%) = 315,00 €

Do anybody know how much an accountant may charge for filing the tax return for the rental income. My accountant is charging €250 and not sure if it is high or moderate, considering the tax amount is only €315 and fees is €250, which leaves me with nothing at the end of the year.

Thank you in advance

Ukkram

404. Bust link.

Thurian

Thanks for that. My accountant seems pretty adamant that my bill is correct as I'm non resident etc.

xtonehari

I too am non resident. I dont live in Portugal.

EMR

If you register as a business and turnover more than 10,000 euros are you then also liable for IVA at 23%.
We have friends who keep their rentals below this amount for that reason.

RichardHenshall

IVA on Alojamento Local accommodation is at the reduced rate of 6%.

EMR

Thanks for the update, IVA may not be as big an issue as they thought.
What about the CGT status if you sell your property registered as a commercial operation ?.

RichardHenshall

I've yet to fully understand that issue but my first impression is that it may be a more significant issue for Portuguese tax residents who are renting their own home. If I understand it correctly, normally they pay tax on half the gain with options to roll over a gain. Non-residents would normally pay tax on the whole gain anyway.

Ukkram

Anyone here sold investments that you had in the UK? What was your PT tax experience as the DTA gives PT the sole right to tax the gains.