Capital gains tax on property in Portugal: 2026 guide

Start with the tax values, not only the two prices

The sale value is generally the consideration received, but a higher value used for IMT may prevail. The acquisition value is normally the amount that served as the IMT base when the property was acquired.

A simplified starting point is: sale value minus corrected acquisition value, necessary documented acquisition and sale expenses, and qualifying documented improvements.

Fifty per cent is usually included - it is not the tax rate

For the ordinary resident case, 50% of the eligible positive Category G balance is generally considered for IRS. That amount joins the seller’s other taxable income and is subject to the progressive rates that apply to the return.

This is why two owners with the same property gain can have different final IRS outcomes. Filing status, other income, deductions, credits and other Category G results can change the assessment.

Correction and documented costs matter

When more than 24 months pass between acquisition and sale, the acquisition value is corrected using an official coefficient approved for the year of disposal and the relevant acquisition year.

As at 1 September 2026, the coefficient table for disposals completed in 2026 had not yet been published. Do not substitute the 2025 table; any 1.00 estimate is provisional unless no correction applies.

Necessary and effectively incurred acquisition and sale expenses may be added to the acquisition side of the calculation. Qualifying improvements completed and documented within the previous 12 years may also be considered. Evidence is essential.

• Use the value that served as the acquisition IMT base
• Apply only the official monetary coefficient for the relevant sale year
• Keep invoices and evidence for eligible transaction expenses
• Separate qualifying improvements from ordinary maintenance assumptions

Main-residence reinvestment can change the taxable gain

A qualifying main-residence sale may benefit when the sale proceeds, after deducting the outstanding loan originally used to acquire the sold home, are reinvested in an eligible main residence. The ordinary window runs from 24 months before to 36 months after the sale and includes declaration and occupation conditions.

Partial reinvestment produces a proportional benefit. New borrowing used for the replacement property is not treated as the seller’s reinvested own funds for this ratio.

Check the conditions of the separate 2026-2029 rental reinvestment regime

For qualifying residential sales from 2026 through 2029, a new regime may apply where net proceeds are reinvested into Portuguese housing let within the statutory rent limits. It includes deadlines, minimum letting periods and restrictions during the first five years.

IMOJA’s calculator does not apply this regime automatically because the rent cap, timing and continuing conditions need case-specific tax review.

When you need an individual calculation

Non-residents, companies, joint returns, inheritances, pre-1989 property, business property, Madeira or Azores cases, publicly supported property, several Category G transactions in one year and age-65-plus relief require individual analysis.

Use the IMOJA estimate to organise the facts and questions, then confirm the result with a certified accountant or tax lawyer before relying on it.