Helping you calculate your Capital Gains
Portugal and Capital Gains Tax
Portuguese law states that financial gains made on real estate and investments are liable for Capital Gains Tax. This does not include personal items and property gained through inheritance would be subject to the normal process of stamp duty.
Your liability for capital gains tax in Portugal depends on whether you are a resident or non-resident. Whatever your residency status, we will advise you on the correct procedure for the calculation and submission of Capital Gains Tax. Missing the submission deadline or including the incorrect documentation can result in a fine or other penalties.
We work with you and prepare your annual rental income tax return and liaise directly with the tax department on your behalf. In return, you get the peace of mind that comes with knowing you are paying the correct amount of tax and are fully compliant with the latest regulations.
Capital Gains advice for residents in Portugal
You are liable for tax gains made on worldwide property. 50% of the gain is liable for tax with inflation relief after two years. The gains are added to your other income and taxed at the standard income tax scale rates. There are other implications in terms of buying a second home, investing in property in the UK or EU and investment in shares.
Capital Gains advice for non-residents in Portugal
As a non-resident, you will pay tax on 100% of the capital gain from a property sale at 28%. For UK residents, the gain would also be taxable in the UK, but for tax paid in Portugal, this can be credited against the amount due in the UK.
Do you need advice regarding Capital Gains exemptions and obligations or need help calculating your capital gain income?
Our Portugal-based team are here to help.