Portugal Real Estate Capital Gains: What You Need to Know for 2023

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Portugal Real Estate Capital Gains: What You Need to Know for 2023

by | Thursday, 12 January 2023 | Investment, Personal Income Tax

Portugal Real Estate Capital Gains

Taxation on Portugal real estate capital gains on real estate are changing from 2023 onwards.

Under the new rules introduced by the Portuguese State Budget for 2023: capital gains obtained by non-residents from the sale of real estate and on the onerous transfer of contractual positions or other rights related to real estate (in both cases when not attributed to a local permanent establishment) are considered in 50% of its value and mandatorily aggregated with their other worldwide income for determining the applicable progressive tax rate (as it already happens for residents).

The above means that non-residents, for tax purposes, in Portugal are now obliged under law to report their worldwide income when reporting their capital gains (or losses) on the sale of real estate property located in Portugal. These reporting obligations used to apply only to those who qualified as residents, for tax purposes, in Portugal and are now extended to non-residents selling their property in the country.

The rules abovementioned imply the reporting of the following worldwide income:

  • Salaries and equivalents
  • Pensions
  • Freelancer or self-employed income
  • Dividends
  • Rental income
  • Interests
  • Capital gains (including crypto and financial portfolios)

Our team of accountants at MCS is ready to provide the assistance you require concerning the new reporting obligations arising in 2023, should you decide to sell your Portuguese real estate property as a non-resident in Portugal.

This article is provided for general information purposes only and is not intended to be, nor should it be construed as, legal or professional advice of any kind. Please do not hesitate to contact us if you have any questions or require our assistance with the above.

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