Taxes on the sale of land and farming products.

A) Taxes on the Transfer of Title over Assets

This tax applies – among other things – to the sale of real-estate, rights of usufruct, use and dwelling, as well as promises to sell the assets mentioned above. Whenever such a promise exists it is taxed and then the subsequent final deed is exempt. The tax applies to both contracting parties, according to the following rates: sellers 2%, purchasers 2% (in the case of legal deeds that do not involve payment, the rate is 4% to be paid by the recipient of the asset).

The amount taxed is that of deeds regarding real-estate, for the real value set by the National Appraisal and State-Owned Real-Estate Management Office at the time the deed taxed is formalized.

B) Municipal Tax on Transactions on Livestock.

This tax is applied to the sale of livestock at a rate of 1%. It is collected by the relevant Departmental or Municipal governments.

C) I.M.E.B.A.

This tax is levied on the sale of farming goods when they are sold from the primary sector to the secondary sector. We have already mentioned it and as we have already stated one of its features is that it may be considered as a payment on account of another tax (the I.R.A.). It has a main rate and two additional rates: the additional ones are always final taxes and their reimbursement cannot, in any case whatsoever, be demanded by the farmer. The additional rates are 2% for MEVIR (Movement for the Eradication of Unhealthy Rural Housing) and 4% for INIA (Agronomic Research Institute). The main rates (subject to a possible reimbursement) are the following: