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Portuguese Prime Minister Antonio Costa has confirmed that proposals for a new real estate tax on high-value property have been included in the Government's Budget for 2017.
The proposed new tax, described by Costa as a "wealth tax," will be imposed on the value of properties over a EUR600,000 (USD660,000) threshold at a rate of 0.3 percent.
The measure is expected to raise an additional EUR160m in revenues annually, which will be used to buttress Portugal's state pension system.
The 2017 Budget also includes a measure to increase tax on income derived from letting out properties to tourists from 15 percent to 35 percent, which includes short-term lets arranged through online platforms such as Airbnb.
Portugal is attempting to avoid being punished with fines by the European Union for consistently failing to meet budget deficit targets, and earlier this year it was given additional time to formulate an appropriate fiscal plan. However, the 2017 Budget will still require the EU's approval.
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