Property owners in Portugal were
faced with higher taxes this week as the Government announced a new series of
harsh fiscal measures. Falling revenues in the country caused by a continuing
recession are putting the nation at risk of failing to meet the conditions for
its economic bailout, and the government have been forced to take action.
As well as increased property
taxes, income tax in Portugal will also rise. Keep reading to learn more.
Income and property taxes in Portugal to rise
Portugal is currently
experiencing its worst recession since the 1970s although experts are concerned
that it could deepen if these tax rises further undermine consumer confidence.
Raising taxes could also spark more opposition to austerity measures that have
already included salary cuts and spending cuts.
Unveiling the new tax plans,
finance minister Vitor Gaspar said: ââ¬ÅWe are confronting a critical moment. It
is fundamental that we maintain our current path to overcome our difficultiesââ¬Â
The Guardian reports that there will be tax rises across the board
in 2013, including income and property taxes, plus a new tax on financial
transactions. The average income tax rate will rise from 9.8 per cent to 11.8
per cent and an additional 4 per cent tax surcharge will be levied on incomes
in 2013.
Portugal’s largest union
responded to the new measures by calling a general strike for 14 November.
Antonio Costa Pinto, political
scientist at the University of Lisbon, said: ââ¬ÅThese are tough measures,
probably worse for the public sector than the private, and protests will
probably go on, but I don’t think there will be any backing off by the
government this time.ââ¬Â
Many countries in the Eurozone have
been forced to increase taxes on income and property in order to balance their
books. Itââ¬â¢s no surprise that Portugal has followed suit, and anyone looking to
invest in property in Portugal should factor in these higher taxes when
buying.
With lower property prices in Portugal and a government responding to the bail out positively I think that for overseas buyers this news should be viewed as encouraging. Whats your view please respond at my Google+ page
Author : Nick
Marr
