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Portugal homes with sea views face higher tax to improve fiscal outlook Portugal homes with sea views face higher tax to improve fiscal outlook Portugal homes with sea views face higher tax to improve fiscal outlook
(about 1 hour later)
People buying a home in Portugal that has unspoilt sea views or faces the sun may be hit by a 20% increase in property tax, under fiercely contested fiscal changes which became law on Monday.People buying a home in Portugal that has unspoilt sea views or faces the sun may be hit by a 20% increase in property tax, under fiercely contested fiscal changes which became law on Monday.
Those with a place overlooking a cemetery or water treatment plant may enjoy a tax reduction of up to 10%.Those with a place overlooking a cemetery or water treatment plant may enjoy a tax reduction of up to 10%.
The percentage increase or fall is at the discretion of the local council, which applies the levy, as part of changes pushed through by the Socialist government.The percentage increase or fall is at the discretion of the local council, which applies the levy, as part of changes pushed through by the Socialist government.
“It’s based on social justice,” says party spokesman Joao Galamba. “People object when someone living in a basement and someone living on the top floor with a great view each have to pay exactly the same tax.”“It’s based on social justice,” says party spokesman Joao Galamba. “People object when someone living in a basement and someone living on the top floor with a great view each have to pay exactly the same tax.”
The initial plan was to impose the increase on property of any value. However, an amendment devised by Communist MP Paulo Sá means it will affect only those homes with a so-called fiscal value of €250,000 (£210,000) – a tiny fraction of the property market, he said.The initial plan was to impose the increase on property of any value. However, an amendment devised by Communist MP Paulo Sá means it will affect only those homes with a so-called fiscal value of €250,000 (£210,000) – a tiny fraction of the property market, he said.
In addition, the change applies only to new purchases and to homes that owners have asked to be valued.In addition, the change applies only to new purchases and to homes that owners have asked to be valued.
Ernesto Pinto, a tax specialist at the consumers’ association Deco, said: “We are totally against this measure. It’s based on subjective criteria. The view from a home depends on the individual’s perception.”Ernesto Pinto, a tax specialist at the consumers’ association Deco, said: “We are totally against this measure. It’s based on subjective criteria. The view from a home depends on the individual’s perception.”
Antonio Farias Marque, the head of the National Association of Property Owners, said: “The signs are that the next step will be to tax the air we breathe.”Antonio Farias Marque, the head of the National Association of Property Owners, said: “The signs are that the next step will be to tax the air we breathe.”