Tax sale (venda fiscal)
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A venda fiscal is the sale of assets seized by the Tax Authority in tax enforcement proceedings, to collect tax debts and other debts owed to the State.
A venda fiscal is what people usually call a 'Finanças auction'. It does not run in a court: the sale is conducted by the tax enforcement body, that is, the local tax office. The rules are in articles 248 to 258 of the Tax Procedure Code (CPPT).
The sale has three stages (article 248):
- for 15 days, with a of 70% of the property's value.
- With no bids, for 15 to 20 days, with a base value of 50%.
- With no bids, a new 15-day electronic auction, won by the highest bid, never below 20% of the property's value.
The value of urban property is its (article 250).
Example
Illustrative example: an urban plot with a VPT of €50,000 goes to auction with a base value of €35,000. With no bids, it moves to sealed bids at €25,000. With no offers, a new auction opens; a bid of €12,000 can win, but one of €9,000 (under 20%) cannot be accepted.
In practice, at an auction
The CPPT requires no deposit. The winner deposits the price within 15 days of the award decision. Above 500 court units of account (unidades de conta), the buyer may ask within five days to deposit only part (at least one fifth) and the rest within 12 months. A winner who does not pay is barred from bidding in tax sales for two years (article 256).
A home used exclusively as the debtor's own permanent residence is, as a rule, not sold (article 244). Judges and tax administration staff cannot buy. See Tax Authority auctions and the guide How to buy a home at a Tax Authority auction.