Cash or Receipts what will you do?
Paying cash from building work is not the perceived benefit that it was with less suppliers accepting cash builders are stuck with how they could use their earnings.
Portugal has had a very long and very active Black economy. The Portuguese government is trying to change this far too late to a shade of Grey and in fact since recent laws were passed in 2017 more and more companies are offering invoices when you buy goods and services. Just in case there was any confusion it’s also against the law to avoid tax payment.
Why is this important to you when you are having construction work carried out in Portugal. This will be one of your greatest expenses when living here. There is a temptation for people coming to a foreign country to avoid “additional expenses” if they can.
Obviously, any builder wants to put through his books as little as possible basically to avoid the payment of tax and Iva which in Portugal is 23%
Castelo Construction looks at this from a different angle. We always provide invoices for work carried out.
why is this important it’s important to you?
Because when the time is right to sell your property in the future whether refurbished or a new build you can claim your VAT Iva back from the tax man saving you so you 23%
Obviously no invoice no savings.
Many people who when down the cash route ended up complaining that they had missed out on the 23% saving when it’s too late.
Here’s a little money saving tip for free without you having to go down the Cash or Receipts route. If you are going to open a bank account in Portugal to buy your property and carry out building work in Portugal make sure that they have a branch in your home country. For instance, Banco Santander Totta has this arrangement.
Then all you have to do is open an account with them in the UK and carry out bank to bank transfers for FREE.
Talk to Kelvin about your construction project on 00351 927168247
Or email firstname.lastname@example.org
Check out some of our projects on www.casteloconstruction.com