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Tax cut for Loulé residents

Loule Mayor Loulé Town Council have announced their decision to lower the IRS tax, as well as the municipal tax on property for people living in the municipality area. This is the second town council in the Algarve to announce tax cuts for residents. In November, Alcoutim, near the border with Spain, also announced tax cuts which can now be decided by local authorities.

Earlier this year, the Central Government announced that from 2008 onwards it would be transferring responsibility to the town halls for collecting five per cent of the IRS income tax and leaving to the local authorities the option of whether they would keep the full amount or choose to lower the IRS for local residents. Loulé has now announced it will be reducing IRS by two per cent for residents in 2008.
The local town council stated: “We live in an increasingly competitive society, and competition between the different cities also exists, especially in matters related to tax. For this reason, the executive has decided to reduce the tax burden on the people who live in Loulé to try to attract new residents and, at the same time, to make this area more attractive to people who wish to open new businesses.”
Owners of properties assessed under the terms of the Municipal Tax Code for Property in Loulé will also see their tax going down from 0.43 per cent to 0.40 per cent in 2008.

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