Cascais, a picturesque coastal town near Lisbon, has recently unveiled a favorable fiscal package for its residents in 2024.
Already recognized as a robust real estate investment area, with rental yields ranging from 4.42% to 7.22% in 2022, depending on the property type and size, the new package is poised to further bolster the sector. This comprehensive package includes a substantial exemption from the Municipal Property Tax (IMI) for urban properties designated as permanent residences, along with a reduction in the IMI rate, potentially as low as 0.30%.
During a private executive meeting held in November 2023, the Cascais City Council approved the proposal to submit the municipal budget for 2024, totaling €357.7 million, and the municipal fiscal package, covering IMI, surcharge, Personal Income Tax (IRS), and the Municipal Tax on Rights of Way (TMDP). One of the standout measures is the reduction in the IMI rate for permanent residences.
Carlos Carreiras, the Mayor of Cascais, emphasized the budget's consistency with previous years and highlighted the increased social support provided, especially in response to current challenges. Additionally, efforts have been made to reduce the tax burden on residents through a package of fiscal incentives. These incentives aim to work around the limitations imposed by financial systems and create differentiation.
The fiscal package introduces reduced IMI rates across various property value brackets, with some rates even dropping below the 0.30% minimum mandated by law. For instance, properties valued under a specific threshold will benefit from a lower IMI rate.
In the municipal fiscal package, Mayor Carreiras proposes maintaining the IMI rate at 0.34%, applicable to 2023 and collectible in 2024. Furthermore, deductions based on the number of dependents will remain, offering financial relief to families.
The proposal also introduces a 30% surcharge on the IMI rate for degraded urban properties. Moreover, the IMI tax will be completely waived for urban residential properties constructed, expanded, improved, or acquired for permanent residence, provided that the total gross income of the household in the preceding year does not exceed €153,300. The exemption will be automatic upon acquisition or granted by the Chief of Finance for the property's jurisdiction, subject to documented application. Urban properties undergoing urban rehabilitation will also enjoy a three-year IMI exemption starting from the year of the municipal license issuance.
The fiscal package extends its benefits to urban properties leased for residential purposes, offering a 20% reduction in the IMI rate for eligible properties in specified areas. Residents can apply for this benefit until September 30, as per the provisions of the 2023 municipal fiscal package, and the reduction can also be sought for the 2025 fiscal year.
Additionally, the fiscal package includes a 1.25% surcharge on businesses with a turnover exceeding €150,000 and a reduced rate of 0.05% for businesses with turnover below that threshold.
To further support residents, the municipality plans to implement a 5% reduction in the IRS tax rate for 2024. This reduction will apply to individuals within the first six income tax brackets and gradually decrease to 0% for those in the ninth bracket.
Furthermore, all communication operators will be exempt from the Municipal Tax on Rights of Way (TMDP).
In summary, the fiscal incentives offered by Cascais for its residents in 2024 reflect the municipality's commitment to supporting homeowners and creating a favorable living environment. These incentives not only alleviate the tax burden but also encourage urban development and property investment in the region, making Cascais an even more attractive place to call home.
Looking for more inspiration? Check out these must-read articles:
Cascais: The Charming Seaside Retreat (urbamarkt.com)
State Budget 2024: How It Affects Real Estate in Portugal (urbamarkt.com)
Due March 2024: Changes in Portugal's Fiscal Landscape for Non-Residents (urbamarkt.com)
Already recognized as a robust real estate investment area, with rental yields ranging from 4.42% to 7.22% in 2022, depending on the property type and size, the new package is poised to further bolster the sector. This comprehensive package includes a substantial exemption from the Municipal Property Tax (IMI) for urban properties designated as permanent residences, along with a reduction in the IMI rate, potentially as low as 0.30%.
During a private executive meeting held in November 2023, the Cascais City Council approved the proposal to submit the municipal budget for 2024, totaling €357.7 million, and the municipal fiscal package, covering IMI, surcharge, Personal Income Tax (IRS), and the Municipal Tax on Rights of Way (TMDP). One of the standout measures is the reduction in the IMI rate for permanent residences.
Carlos Carreiras, the Mayor of Cascais, emphasized the budget's consistency with previous years and highlighted the increased social support provided, especially in response to current challenges. Additionally, efforts have been made to reduce the tax burden on residents through a package of fiscal incentives. These incentives aim to work around the limitations imposed by financial systems and create differentiation.
The fiscal package introduces reduced IMI rates across various property value brackets, with some rates even dropping below the 0.30% minimum mandated by law. For instance, properties valued under a specific threshold will benefit from a lower IMI rate.
In the municipal fiscal package, Mayor Carreiras proposes maintaining the IMI rate at 0.34%, applicable to 2023 and collectible in 2024. Furthermore, deductions based on the number of dependents will remain, offering financial relief to families.
The proposal also introduces a 30% surcharge on the IMI rate for degraded urban properties. Moreover, the IMI tax will be completely waived for urban residential properties constructed, expanded, improved, or acquired for permanent residence, provided that the total gross income of the household in the preceding year does not exceed €153,300. The exemption will be automatic upon acquisition or granted by the Chief of Finance for the property's jurisdiction, subject to documented application. Urban properties undergoing urban rehabilitation will also enjoy a three-year IMI exemption starting from the year of the municipal license issuance.
The fiscal package extends its benefits to urban properties leased for residential purposes, offering a 20% reduction in the IMI rate for eligible properties in specified areas. Residents can apply for this benefit until September 30, as per the provisions of the 2023 municipal fiscal package, and the reduction can also be sought for the 2025 fiscal year.
Additionally, the fiscal package includes a 1.25% surcharge on businesses with a turnover exceeding €150,000 and a reduced rate of 0.05% for businesses with turnover below that threshold.
To further support residents, the municipality plans to implement a 5% reduction in the IRS tax rate for 2024. This reduction will apply to individuals within the first six income tax brackets and gradually decrease to 0% for those in the ninth bracket.
Furthermore, all communication operators will be exempt from the Municipal Tax on Rights of Way (TMDP).
In summary, the fiscal incentives offered by Cascais for its residents in 2024 reflect the municipality's commitment to supporting homeowners and creating a favorable living environment. These incentives not only alleviate the tax burden but also encourage urban development and property investment in the region, making Cascais an even more attractive place to call home.
Looking for more inspiration? Check out these must-read articles:
Cascais: The Charming Seaside Retreat (urbamarkt.com)
State Budget 2024: How It Affects Real Estate in Portugal (urbamarkt.com)
Due March 2024: Changes in Portugal's Fiscal Landscape for Non-Residents (urbamarkt.com)
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