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.

FAQ

At Portutax, our fiscal representatives provide expert advice on capital gains tax for financial gains from real estate and investments in Portugal. We take into account relevant taxation laws and regulations to ensure our clients are well-informed and compliant. Our team will work closely with you to determine the best tax strategies for your specific situation.

The liability for Capital Gains Tax in Portugal is determined by the sale of assets such as property, stocks, or other investments. Residents and non-residents are subject to different tax rates and exemptions, so it's important to understand the specific regulations for each scenario.

Portutax assists residents in calculating and submitting Capital Gains Tax by offering expert guidance and support. They have experience in dealing with worldwide property gains and can provide accurate and thorough calculations. Their team ensures that all relevant documentation is submitted correctly and on time to avoid any potential penalties.

Residents in Portugal may be subject to Capital Gains Tax when selling a second home, property, or shares. The tax rate can vary depending on the type of asset and the length of ownership. It's important to seek professional advice to understand the tax implications before making any investment decisions.

Portutax helps non-residents navigate through the 28% tax on capital gains from property sales in Portugal by providing expert guidance and support. Our fiscal representatives will ensure that all necessary documentation and calculations are accurately completed. We also offer personalized advice to minimize tax liabilities and maximize returns for our clients.

In order to offset tax paid in Portugal against UK tax liability for property gains, UK residents can utilize the Double Taxation Treaty between the two countries. This treaty allows for tax credits or exemptions on income that is taxed in both countries. It is important to seek professional advice to ensure compliance with both Portuguese and UK tax laws.

If you miss the submission deadline or provide incorrect documentation for Capital Gains Tax in Portugal, you may face penalties such as fines or interest charges. It is important to ensure all documentation is accurate and submitted on time to avoid these consequences. You can consult with our experienced fiscal representatives to help you navigate the process and avoid potential penalties.

Portutax ensures peace of mind by staying up-to-date with the latest tax regulations and ensuring full compliance. Our trusted fiscal representatives work diligently to accurately calculate and submit tax payments on behalf of our clients. With Portutax, clients can rest assured that their tax obligations are being handled with precision and care.