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OPERATING COSTS

Municipal Property Tax (IMI) Property tax ( IMI Imposto Municipal sobre Imóveis ) is the Portuguese equivalent of

UK council tax. The tax is computed based on the tax registration value of urban and

rural properties located in Portugal. The tax registration value is determined by the local

tax authorities, taking into consideration several criteria including property age, size

and location. The IMI is payable by the registered property owner as of 31st December

of the year in question. The rate varies between 0.3% and 0.5% for urban properties.

Properties owned by those who are tax residents in another jurisdiction (i.e. outside of

Portugal) are subject to IMI at a rate of 7.5%, regardless of the type of property.

There are some exemptions, such as property in urban refurbishments or if the property

is considered a permanent place of residence, with a tax registration value of up to

EUR125,000 (exemption frame period for 3 years).

Municipal Sewage Charge The municipal sewage charge is paid annually by the owner of the property and is levied

on the taxable value of the property. The rate varies depending on the municipality. In

Lisbon, 1 8 th of the IMI rate is applied.

Repairs and Maintenance Repairs and maintenance of a property are the responsibility of the owners. However,

tenants may be liable for damage caused, barring normal wear and tear. Between

tenants, the owner will need to ensure the property is in a good condition for it to be

re-let, which will include repairs and regular redecoration.

Management Fees The management fees are charged by a lettings and managements (L&M) agency for

their services, including locating a tenant, contract renewal, and collecting rents, etc.

As an end-to-end service provider, IP Global can assist with the property management

service on behalf of the clients in that country. Similar to the process within the UK

and Germany, COMPLETE would be the point of contact should one wish to let their

property in Portugal.