A collection of twelve apartments in Lisbon for sale

Bedroom

Studio 3A

Kitchen & Living Room

Studio 2E

Bedroom

Studio 2B

Bathroom

Studio 2B

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Property Investment in Portugal: Liberdade Studios

Liberdade Studios has been created to be a perfect property investment in Portugal.

Catering to the rise of tourism in Lisbon, the development is an excellent choice for Lisbon short-term rental market.

All studios are part of a rental management programme operated by one of the city’s leading companies – Lisbon Serviced Apartments.

All studios have fixed rental income of 4% for 5 years (NET before tax), replacing furniture and other items, condominium fees, water and electricity bills.

Lisbon Serviced Apartments Liberdade covers costs of promotion, check-ins, cleaning, and maintenance.



Studio Features



Key Questions about Buying Property in Lisbon

Can I sell my property at any time?

Yes. It is possible to sell your studio whenever you like. The new owner will be bound by the original rental contract and the 4% guarantee will correspond to your original purchase price.

Can I stay in my studio during the first 5 years?

No. It is not possible to break the rental management programme. You may make a reservation at Liberdade Studios through Lisbon Serviced Apartments but, due to other bookings, it’s unlikely you will stay in your specific studio.

What happens after 5 years?

Lisbon Serviced Apartments will return studios to their original, brand-new condition before handing them back to owner.

All owners in the building can then decide to:


How is my real estate investment is protected?


Lisbon Serviced Apartments pays the first and the last month of rent in advance as well as a ‘First Demand’ bank guarantee equivalent to 6 months of rent.

There is a 5-year construction warranty from the construction company.

There is a 2-year standard manufacturer’s guarantee on appliances.

But Lisbon Serviced Apartments takes care of maintenance and repairs anyways.

Generally, Lisbon Serviced Apartments takes great care of your property investment in Portugal.



Property in Lisbon: Property Taxes in Portugal

Liberdade Studios has been designed with investors in mind to guarantee a hassle-free property investment in Portugal.

But to have a complete picture about buying property in Lisbon, you have to understand how property taxes in Portugal work.



Taxes on Owning Property in Portugal

  1. “IMI” – Immovable Property Tax.

Immovable Property Tax is a municipal tax and is payed annually. Each municipality has its own rate that is decided by the municipal assembly. IMI is payed by a person or a company that owns property in Portugal on the last respective day of the year.

Generally, IMI falls in the range between 0,3% and 0,45%. Yet, rural property in Portugal can be taxed at 0,8%.

Property that has been re-valued since 2004 is taxed in the range between 0,2% and 0,5%. On the other hand – the property that has been re-valued before 2004 is taxed between 0,4% and 0,8%.

Please note, that property in Portugal that is owned through companies registered in black-listed jurisdiction – tax havens – is a subject to a 7,5% tax, levied on the property tax value.

There are exemptions to IMI property taxes in Portugal:

Properties that are used as a permanent home or are rented out can be exempt to IMI for up to 3 years. The property is exempt only in case if its tax value does not exceed €125,000; and the taxable income of the property owner in the year before purchase does not exceed €153,300.



Taxes on Purchasing Property in Portugal

  1. “IMT” – Property Purchase Tax.

IMT is a tax on the transfer of ownership and is payed once – upon buying property in Portugal.

IMT is levied either on the property purchase price or property tax value, whichever is higher. Despite IMT rates depend on real estate prices in Portugal, below are values representing marginal rates:

*Permanent home property
Up to €92,4070%
€92,407 - €126,4032%
€126,403 - €172,3485%
€172,348 - €287,2137%
€287,213 - €574,3238%
€574,323 and above6%
*Rented out property
Up to €92,4071%
€92,407 - €126,4032%
€126,403 - €172,3485%
€172,348 - €287,2137%
€287,213 - €550,8368%
€550,836 and above6%


As with IMI, there are some exemptions to IMT property taxes in Portugal:



Wealth Taxes on Purchasing Property in Portugal

  1. “AIMI” – Portuguese version of a wealth tax.

AIMI is imposed on individual who are buying real estate in Portugal valued above €600,000.

AIMI is levied on the property tax value. The rates are different for companies, individuals, and owners of property with the value over €1,000,000.

Companies0,4%
Individuals0,7%
Owners of property valued above €1,000,0001%



Other Property-Related Taxes in Portugal

Stamp Duty is levied on different documents related to the process of buying real estate in Portugal. Namely: contracts, deeds, bank mortgages, and loans.

Stamp Duty rate depends on the type of the property and its tax value, but, typically, fall between 0,4% and 0,8%.

Please note, that corporate transaction of property is free of Stamp Duty.

Capital gains tax in Portugal is set at the flat rate of 25%. Nevertheless, if the capital earned from property sale is reinvested back into Portugal’s real estate market, only 50% of revenue made is taxed.

If after buying property in Portugal you want to rent it out, then the rental income is a subject to a tax.

Typically, rental income and any income generated from property in Portugal (interest, dividends) is taxed at the 28% rate.