As described in my blog post CGT in Portugal, the sale of a property may cause CGT liabilities when, in simple terms, the sales price (valor de realização) is higher than the purchase price (valor de aquisição).
Owners of AL properties have been caught by surprise when they heard about potential CGT liabilities associated to the business activity of renting out their property to holidaymakers (CAE 55201 and 55204). Continue reading
Capital Gains Tax (CGT) is one of the major matters of interest when it comes to deciding where to buy a property, so it might be worthwhile knowing how it is calculated in Portugal.
If you have bought your property after the 31st of December 1988 and sell it with a gain, this gain will be taxed in two different ways, depending if your are resident or non-resident in Portugal. Properties purchased before 1989 are exempt from CGT. In any case, even if the property is sold without a gain or exempt from CGT, a tax declaration must be filed. Continue reading