Capital gains when you sell a Portuguese home

Selling a Portuguese property can create a capital gain taxed in IRS. Residents normally declare half of the gain (after allowed costs) in the annual return; non-residents follow different withholding and form rules. Exact treatment depends on your tax residence and the year of sale.

Sale price minus costs

Start from the sale price in the deed. Subtract the acquisition value (or the VPT rules that apply to older purchases), plus documented costs: IMT and stamp duty paid when you bought, notary and registry fees, and certain improvement works with invoices. Estate-agent commission with a proper invoice usually counts. Keep PDFs; screenshots of transfers are weak evidence.

Primary home relief

Portuguese law has reinvestment rules that can defer or reduce tax when you sell a permanent residence and buy another within the windows Finanças publishes. The deadlines and the share of the gain that must go into the new home are strict. Read the current Portal das Finanças note before you assume you owe nothing.

Do not invent a low sale price

The buyer’s IMT and your capital-gains file both look at the deed. A side cash deal that never appears in the escritura is illegal and easy to catch later. Price the flat honestly and budget tax with an accountant if the gain is large or you have foreign income in the same year.

Checked 28 October 2026. This is not legal or tax advice. Portuguese rates and rules change. If the Autoridade Tributária or a notary page disagrees, follow that page.