CENTRAL14.org

About AFC

AFC is a property consultancy firm providing tax and financial advisory services to international purchasers, investors and developers. We are presently operating through offices in Valletta (Malta), New York (U.S.A), Vilamoura & Lisbon (Portugal) and Santa Maria (Cape Verde). We have a qualified team of experts in tax and finance, who are fully dedicated to property investment and development to ensure you achieve an optimal investment in overseas properties. Our tax services are coordinated through our offices in the USA, which will then contract one of our local firms to carry out the tax compliance in the country where the property is bought.

Tax Services
Undertaking property transactions, in a tax-efficient way, in a foreign country is a challenge that will require local assistance. At AFC, we understand the requirements of our clients and therefore provide the effective solutions and services to deal actively with their tax affairs. Our tax services department deals exclusively with non-resident clients whether they are individual property purchasers, professional investors or development companies. We have a deep knowledge of the Portuguese tax laws and will be able to give professional advise on the tax options available to you. Our objectives are unquestionably to comply with the law, but at the same time take full advantage of the opportunities and benefits the tax system affords.

What situations are subject to IMT?

IMT is payable, as a rule, on the transfer of immovable assets located in Portuguese Territory. Several situations will trigger IMT, namely:
- The purchase of a property;
- A rental agreement that states that once all the rent payments have been made, the tenant will become the property owner;
- A rental agreement with a duration superior to 30 years;
- The exchange of properties, when they have different values;
- The acquisition of company shares (in a LDA company), whenever the company owns a property and a shareholder holds at least 75% of the shares. IMT is paid before the property transmission becomes effective, which normally occurs when the deed of purchase and sale is signed at the Notary. However, IMT is due before the promissory contract of purchase and sale is signed, whenever the buyer takes possession of the property.

Who is due to pay IMT?

- In a purchase and sale contract, IMT is due by the buyer of the property;
- In an exchange agreement, IMT is due by the party who receives the property with the greater value;
-In a promissory contract of purchase and sale that includes a clause allowing the assignment of the buyer’s contractual position to a third party, IMT is due by the promissory buyer and by any subsequent(s) third party(ies). The same rule applies when the buyer’s contractual position is assigned as stated in the promissory contract of purchase and sale;
-In an irrevocable Power of Attorney, IMT is due by the agent (usually, a solicitor) who is authorized to conduct the transaction on behalf of the principal.