Real estate assets above two million will pay more tax

The PCP and the Left Block reached an agreement with the Government to create a new rate of 1.5% on real estate held by natural persons, with an overall value of more than two million euros. The two parties decided to bring their amendments together with some differences: while the PCP advocated the creation of a new rate of 1.5% for real estate assets above 1.5 million euros, the Block wanted a rate of 2% for properties with a tax net worth over 2 million euros.

The PS ends, therefore, by retreating in its initial position, doing the will to the PCP and the Block. In a business interview, on November 15, when negotiations were still underway with the parties on the left, João Paulo Correia, coordinator of the PS in the Committee on Budget, Finance and Administrative Modernization, told Business that the party was "more than side of the stability of the application of the measure than on the side of permanent changes ". In that sense, it did not exclude "one or other change", but it should only be "corrections or corrections".

But the Government kept open the possibility of meeting the partners' proposals and the final version will be a "mix" between what was proposed by the PCP and the Block. The two parties eventually replaced the proposals they had initially tabled with a new one that coincides and creates a new step, with a rate of 1.5%, as originally proposed by the PCP, but for real estate worth over 2 million of euros, as the Block defended.

It is this proposal that will be approved with the votes of the PS, told the Business different parliamentary sources. According to João Paulo Correia, the Socialists chose to attend "the proposal to create a step that guarantees more progression and also because all this revenue is assigned to the Social Security Financial Stabilization Fund."

The addition to the IMI was created in 2017 by a proposal of the Block of the Left and, at the moment, is due by the natural persons who hold real estate patrimony above 600 thousand euros. Between this amount and one million euros, a rate of 0,7% is applied. Above this value, the rate rises to 1%. With the approval of the new PCP and BE proposal, the 1% rate will be applied to real estate worth between EUR 1 million and EUR 2 million and from this amount a rate of 1.5%.

The additional to IMI is also due to legal persons that currently pay 0.4% of the total tax value of all the properties they own. This rate remains unchanged.