The Algarve’s hoteliers' association has hit out at the proposed new tax on those owning over €1 million of real estate, saying the move planned for the next tax year will deter investors, especially foreign ones.
The ‘super-IMI’ tax payable by owners with property assets of above €1 million, will simply show that Portugal is fiscally unstable and will cause huge concern across the business sector.
The association’s position is that "residential tourism is one of the few sectors where investment is growing, particularly foreign investment."
"Although the finer details are still not known, there is no doubt the new tax burden on real estate owners will trigger a decline in investment, with special emphasis on foreign investment," argues the AHETA.
According to the association’s spokesman, ‘the lack of understanding of tourism by even the most senior figures in government, and of tourism's present and future importance to the Portuguese economy, is just one more thing that hurts the competitiveness of our tourism industry in particular and our economy in general."
The proposed tax will involve lumping together the value of all properties and imposing a rich man’s tax on owners who hold over €1 million worth.
This 'super-IMI' proposal is part of the government’s move to ensure lower income taxes by increasing indirect taxes such as those on fuel, tobacco and property.
