Capital Gains Tax Portugal

Portugal's Capital Gains Tax: A Guide for Investors

Introduction

Portugal's tax regime for non-residents has recently undergone a significant change, bringing it in line with the regime applicable to tax residents. This article provides a comprehensive guide to capital gains tax in Portugal, including rates, exemptions, and the calculation process.

Capital Gains Tax Rates

As of 2023, capital gains tax in Portugal is charged on the sale of property or other assets at a rate of 50%. This rate applies to both residents and non-residents of Portugal.

Exemptions

There are a number of exemptions to Portugal's capital gains tax, including: * The sale of a primary residence * The sale of assets held for more than 12 months * The sale of assets with a value of less than €5,000

Calculating Capital Gains Tax

To calculate capital gains tax, you will need to determine the following: * The sale price of the asset * The purchase price of the asset * The holding period of the asset The capital gain is the difference between the sale price and the purchase price. The capital gains tax is then calculated by multiplying the capital gain by the applicable tax rate. For example, if you sell a property for €100,000 and you purchased it for €50,000, your capital gain would be €50,000. The capital gains tax would then be €25,000 (50% x €50,000).

Conclusion

Portugal's capital gains tax regime can be complex, but it is important to understand the rules and regulations before selling any assets in Portugal. By following the steps outlined in this guide, you can ensure that you are compliant with Portuguese tax law and that you are paying the correct amount of tax.