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The protection of the family residence in the tax execution procedures

On 24 May 2016, Law nº 13/2016 of 23 May, which has established restrictions on the executive sale of real property used for the personal and permanent residence of the taxable person against whom an enforcement is sought, entered into force.

We can deduced from a careful reading of Law nº 13/2016, the following consequences:

  1. There is no executive sale of real property intended for the taxable person’s own and permanent residence or for that of a member of his family subject, when the real property is effectively used for this purpose;
  2. The real property, used for the personal and permanent residence of a taxable person, whose reteable value, at the time of the attachment, is higher than € 574.323,00, may be sold, provided that the sale occurs one year after the end of the period prescribed for voluntary payment of the oldest debt;
  3. The legal impediment to the sale of real property used for the personal and permanent residence of a taxable person may cease at any time, at the request of the person against whom the enforcement is sought;
  4. The limitation period of the debt will be suspended during the period of the legal impediment to the sale of real property used for the personal and permanent residence of a taxable person.

Due to the letter of Law and to the doubts which may raise, we foresee that the Tax Authority will establish administrative understandings regarding concepts of “personal and permanent residence” and “rateable value”, which are used in the recently published Law.

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