# Capital gains tax in Portugal for residents and non-residents [Living in Portugal](/living-in-portugal/) Guide Law as at 19 October 2026 7 min read Signed by our advisers · 4.7 on Google, 43 reviews In short A Portuguese resident pays 28% on net gains from shares and other securities, unless aggregation applies, and progressive IRS rates on 50% of a net property gain. - Non-residents selling Portuguese property: the same 50% rule since 2023. - Main home: reinvesting the proceeds, less the purchase loan, in another main home in the EU or EEA, from 24 months before to 36 months after the sale, can exclude all or part of the gain if the residence, use and declaration conditions are met. ## Is capital gains tax in Portugal 28% or 50%? These figures describe different things. A 28% rate commonly applies to a resident individual’s taxable securities gains under the ordinary rules. For property, 50% is normally the share of the net gain included in taxable income, which then follows progressive IRS rates. It is not a 50% tax rate. The answer depends on what you sell, your tax residence, holding period and any qualifying relief. Next step **Selling property in Portugal.** The tax turns on the taxable gain and on whether the reinvestment relief applies. We work out both for your sale, resident or not, and give you the figures for your return. [Selling property in Portugal](/services/selling-property/) ## Capital gains rules at a glance for 2026 **Property:** generally 50% of the net gain enters progressive IRS taxation, subject to statutory exceptions and any qualifying exclusion. **Securities:** the ordinary autonomous rate is 28%. A resident can often elect aggregation; specified securities held for less than 365 days must be aggregated when taxable income, including that balance, reaches the top IRS band. **Unlisted micro and small companies:** a qualifying positive balance can receive 50% inclusion under the statutory company-size definition. Shares in other private companies do not receive it. **Longer-held investments:** eligible traded securities and open-ended collective-investment holdings can receive 10%, 20% or 30% exclusions according to their holding period. ## Property gains for residents and non-residents For a Portuguese resident individual, the ordinary rule includes 50% of the net property gain in taxable income. For example, a EUR 100,000 net gain would normally add EUR 50,000 before applying the relevant IRS calculation. The resulting tax depends on other income, deductions and relief; it is not reliably calculated by halving one marginal rate. Since 2023, a non-resident’s Portuguese property gain also generally uses 50% inclusion and progressive IRS rates. Worldwide income is considered to determine the applicable rate under the non-resident rate-calculation rules. This does not make all foreign income taxable in Portugal for a non-resident. The property-gain inclusion rules contain exceptions, including specified properties supported by substantial non-repayable public aid and sold within the statutory ten-year period. Business-use property and ownership through a company require a different review. ### Selling a property in Lisbon Capital gains rules are national, so a property in Lisbon is taxed exactly like one in Porto, [the Algarve](/algarve-tax-advisor/) or anywhere else in Portugal: 50% of the net gain at IRS rates, for residents and non-residents, unless the proceeds of your main home are reinvested in a new one. The [property sale calculator](/property-sale-tax-calculator/) gives an estimate for 2026. ## Reinvestment relief: main home and the 2026 rental route Reinvestment relief concerns the sale proceeds after repayment of the loan used to acquire the sold property, not just the gain. For the main-home route, the sold property must meet the permanent-home and tax-address conditions. The normal requirement is 12 months before the sale or, if earlier, before the reinvestment, subject to statutory exceptional circumstances. Reinvestment must occur within 24 months before or 36 months after the sale, in a qualifying permanent home in Portugal, the EU or an EEA state with tax-information exchange. Declare the reinvestment intention and amount in the sale-year return. A purchased replacement normally must become the main home within 12 months after reinvestment, with the required tax address. Construction, enlargement or improvements follow their own registration and occupation deadlines. Partial qualifying reinvestment gives proportional relief. A separate route applies to sales from 1 January 2026 to 31 December 2029 of a main home or other residential property, where the proceeds are reinvested in Portuguese housing let at a monthly rent within the moderate-rent limit, EUR 2,300 in 2026. The reinvestment must take place between 24 months before and 36 months after the sale, and the intention to reinvest must be stated in the sale-year return. A letting contract is required within six months of the reinvestment or, if later, the sale, unless a justified impediment, such as urgent works, requires a strictly necessary extension. The property must be let for at least 36 months, continuously or not, in the first five years, within the rent limit and without being sold or given away; those five years run from the reinvestment or, if later, the sale. It is not the main-home replacement route. ## Purchase costs, improvements and inflation adjustments Build the property gain from the acquisition value, any eligible monetary correction, the disposal value and allowable expenses. Under the allowable-expense rules, documented enhancement costs incurred in the previous 12 years can qualify, together with necessary, actually incurred acquisition and disposal expenses. Not every repair, furnishing or invoice is an allowable enhancement. Public aid and periods of business use can restrict the amounts allowed. Under the monetary-correction rules, acquisition values of qualifying real-property rights held for more than 24 months can be adjusted using the applicable official coefficient. The same rules also cover qualifying equity interests; inflation adjustment is not limited to property. Estimate the tax on your sale with our [property sale tax calculator](/property-sale-tax-calculator/). ## Shares and funds: holding periods, rates and cost basis The ordinary 28% securities rate applies to the taxable balance, not gross sale proceeds. For eligible securities admitted to trading and holdings in open-ended collective-investment undertakings, the holding-period relief excludes 10% of the balance for assets held more than two but less than five years, 20% for five to less than eight years, and 30% for at least eight years. The rule also adjusts a negative balance and excludes specified cases. Monetary correction for qualifying equity interests differs from the holding-period exclusion. Property reinvestment relief does not carry across to ordinary share sales. A foreign broker does not by itself make a gain foreign-source. Use the [foreign-income guide](/guides/portugal-foreign-income-tax/) for reporting and the [crypto guide](/guides/crypto-tax-portugal/) for the separate cryptoasset rules. Selling shares or other investments? [Explore a Tax Consultation on your Portuguese tax position](/tax-consultation/). ## Foreign capital gains: treaty relief and cross-border tax coordination Foreign capital gains require a domestic calculation plus treaty analysis. The same asset can trigger obligations in both countries, depending on asset type and treaty allocation. Foreign real estate gains are commonly taxable in the property location country and reportable in Portugal for residents, with foreign-tax-credit mechanics applied under treaty and domestic limits. Foreign securities gains may be residence-allocated under treaty rules. If a prior country imposed departure tax when you changed residence, do not assume an automatic Portuguese step-up in basis. ## Track reinvestment from the sale to the return If reinvestment is partial, delayed or followed by a change of use, review the relief and any corrective filing. ## Scenario comparison: property vs securities Assume a Portuguese resident sells a home and a share portfolio in the same year. | Check | Home sale | Share sale | | --- | --- | --- | | Taxable amount | Calculate the property gain, eligible costs and applicable inclusion rule | Calculate each disposal, acquisition basis, fees and applicable securities rules | | Possible relief | Test main-home or other qualifying reinvestment conditions and deadlines | Test any eligible holding-period exclusion, aggregation rule and loss treatment | | Records | Deeds, acquisition-loan balance, invoices, tax-address history and reinvestment evidence | Trade confirmations, acquisition lots, fees, corporate actions and withholding records | | Cross-border point | Identify the property’s location and any foreign tax | Establish the issuer or asset source and any treaty allocation | ## Frequently asked questions ### What capital gains tax does a non-resident pay in Portugal? A non-resident who sells Portuguese property pays IRS on 50% of the net gain, at the progressive rates set by reference to their worldwide income, the same inclusion as a resident since 2023. Gains on Portuguese shares and other securities are generally exempt for a non-resident, unless the company's assets are mainly Portuguese property or the seller lives in a listed tax haven. ### What is the capital gains tax rate on property in Portugal? For an individual, 50% of the net property gain is normally included in taxable income and taxed progressively, subject to exceptions and relief. This is an inclusion rule, not a fixed tax rate. ### Can I avoid capital gains tax if I reinvest in another property? Potentially. Main-home relief requires the sale proceeds, less repayment of the loan used to acquire the sold home, to be reinvested in a qualifying permanent home in Portugal, the EU or an eligible EEA state. The normal window is 24 months before to 36 months after sale. Separate relief introduced for qualifying residential-rental reinvestment can apply to 2026 to 2029 sales; its rent, use and retention conditions differ. ### When can capital losses offset capital gains? Losses offset gains realised in the same year within the same group: property with property, and shares, other securities, derivatives and crypto-assets with each other; a loss on securities, derivatives or crypto-assets does not count where the counterparty is subject to a clearly more favourable tax regime. The part of a negative property balance counted under the property-gain inclusion rules, normally 50%, can be carried forward for five years; a negative balance in the securities group can be carried forward for five years only if those gains are aggregated, by election or because aggregation is compulsory. ### How are foreign capital gains taxed in Portugal? A Portuguese resident generally reports worldwide gains, including foreign disposals in Anexo J. Determine the asset’s source and category, calculate the gain under Portuguese rules and then apply any treaty or eligible special regime. ### Does IFICI exempt me from capital gains tax in Portugal? Yes, IFICI can exempt qualifying foreign-source capital gains in Category G. The 20% rate applies to qualifying work income, not gains. Portuguese-source gains follow ordinary rules, while foreign gains are subject to the exemption-with-progression rule and the listed-jurisdiction exception in the IFICI foreign-income rules. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [Property tax in Portugal: IMT, IMI and gains](/guides/portugal-real-estate-tax-guide/) Portuguese property bears IMT and 0.8% stamp duty on purchase, annual IMI, and income tax on rent and on 50% of a sale gain. - Guide · Law as at 19 October 2026 ### [Portugal inheritance tax: stamp duty explained](/guides/portugal-inheritance-gift-tax-guide/) Who pays tax on an inheritance or gift in Portugal: stamp duty at 10%, the family exemptions, property gifts, reporting and cross-border estates. - Guide · Law as at 19 October 2026 ### [Foreign income in Portugal: Anexo J step by step](/guides/portugal-foreign-income-tax/) A Portuguese tax resident is taxed on worldwide income, including income obtained abroad. ## Tell us about your situation We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/capital-gains-tax-portugal/ General guidance only. Individual facts govern.