Capital Gains Tax

Whenever a property is sold in the Portuguese territory, a Capital Gains Tax Return must be submitted on the tax year following the year of the property sale, in order to be compliance with the Portuguese Tax Rules, even if the sale results in a loss

Non resident individuals  are taxed at a flat rate of 28% on the net gain.

Note: companies (without a permanent establishment in Portugal including offshore companies) are taxed at a flat rate of 25% on the taxable profit.

The capital gains tax is calculated as follows:

Selling price
- (Purchase Price X Indexation Coefficient)
- Deductible Expenditures
= Taxable Capital Gain
X 28%
= Capital Gains Tax