Tax on capital gains in Portugal

Generally speaking, in comparison to other countries, tax rules on Cap. Gains in Portugal can be considered generous for portuguese residents.

Only 50% of the revenue from the sale of real estate is liable to taxation. And there are several significant expenses that can be deducted, softening the end figure to pay.

All Purchase and Sale Costs, as well as any costs of improvements on the Property that have been carried out 12 years prior to the sale, can be deducted against the Cap. Gains Tax. 

Adding to that, there might be exemptions available.

For instance: From the sale of own&permanent residence, should you purchase another own&permanent residence in Portugal, the EU or EEA within 3 years. Or you can backdate the Cap Gain Tax if you purchase a Property up to 2 years before selling your own&permanent residence.

Also, from the 1st of January 2023 short term Cap Gains (i.e. gains originated from assets held for less than a year) will be taxable as income.

These gains will be taken into account, together with other income you might have in the year, if your total income (Cap. Gain + other incomes) exceeds 75.009.00€.

I will be happy to recommend you a quality, English speaking tax advisor so you can structure your investments and wealth in the most tax efficient way but still meeting all legal requirements and obligations.

Seeing a professional financial advisor would help you understand what would make sense for your specific circumstance and figure out how much on tax, you could potentially save.

Please note that this information does not substitute professional legal and financial advice and no responsibility can be accepted for any kind of loss or damage.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; Individuals should seek professional personalised advice.