Portugal to introduce tax on real estate fortunes
PORTUGAL will introduce a tax on real estate fortunes above 600,000 euros (US$661,000) next year to help pay for pensions,.
The tax, fiercely opposed by the real estate sector which fears it will put the breaks on foreign investment, is in the draft budget for 2017.
If the value of all real estate owned by a taxpayer surpasses 600,000 euros, a levy of 0.3 percent will be applied to the amount above this threshold.
The government expects the measure will raise 160 million euros each year to boost pension payments.
The threshold of 600,000 euros will spare most beneficiaries of the country’s so-called “golden visa” scheme, which has helped fuel demand for real estate among wealthy foreigners from outside the European Union.
Cash-strapped Portugal in October 2012 started offering “golden” visas to non-EU citizens willing to invest 500,000 euros in property, make a capital transfer of one million euros or create 10 jobs.
The Portuguese visas allow foreigners to travel within the EU without restriction. –