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Print articleDouble Taxation with Stamp Duty on Luxury Properties
June, 2013 - PLMJ
By reference to the rules of assessment and payment applicable to municipal property tax (Imposto Municipal sobre Imóveis - IMI), the land registration status of the property as at 31 December of any given year is established as the taxable event. The tax is paid in two or three instalments – depending on the value of the assessment – during the following year, as is the case with IMI. This means that, under normal conditions, the new tax should only be fully applicable in 2013, the year in which the tax will be assessed by reference to the land registration status of the property as at 31 December 2012, again, as happens with IMI.
However, due to the pressing need to collect additional revenue to meet the budgetary targets imposed by the Troika for 2012, transitional arrangements have been put into place in order for the new tax to have immediate application.
