PURCHASE TAXES

PROPERTY/ REAL ESTATE EXEMPTION OF IMT PURCHASE TAX:

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

Table of IMT PURCHASE TAX for 2012 on 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

 

Amount Deductable 

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 2012on 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

 

Amount Deductable 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 imoveis) 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 p.a.

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.

Madeira Island