Latest news and stories about tax exemption in finance in Portugal for expats and residents.
The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) has issued a binding ruling stating that taxpayers who use their primary residence as a workplace may lose eligibility for capital gains tax exemptions. This applies even if the proceeds from a home sale are reinvested into the purchase of another primary and permanent residence.
The Tax and Customs Authority (Autoridade Tributária e Aduaneira) has clarified that the capital gains tax (mais-valias) exemption for reinvesting in a primary residence is limited when a property owned by one person is sold to buy a home jointly. In such cases, the tax benefit only applies to the share of the new property corresponding to the original owner, typically 50%. Homeowners planning to sell a property they purchased while single to buy a new home with a partner should be aware of these potential tax liabilities.
Capital gains tax (mais-valias) is a tax on the profit made from selling an asset like a house. Residents are typically taxed on 50% of the gain, which is often more favorable than the 100% inclusion used in the UK or the 36.2% total rate in France. Homeowners should note that the tax authority (Autoridade Tributária or AT) recently ruled that reinvestment benefits only apply to the original owner's share when buying a new property jointly.
To address Portugal's intensifying housing crisis, the Porto Academic Federation (FAP) has proposed key fiscal measures, including rental income tax exemptions and a temporary ban on residential property purchases by non-residents.
The tax authority has clarified that capital gains from primary residence sales in 2025 are ineligible for the new reinvestment-based income tax exemption for residential rentals.
The Ministry of Finance has upheld the Tax Authority's restrictive interpretation of IRS capital gains exemptions for real estate, confirming the legality of their stance on properties in ruins and mixed-use assets.
The tax authority has issued a new ruling removing the requirement for a collective bargaining agreement to qualify for tax-exempt productivity bonuses, significantly broadening eligibility for workers.
The Portuguese Tax Authority has clarified that young people under 35 are ineligible for first-home tax exemptions if they already own shares in residential properties, regardless of whether those shares were acquired through inheritance or donation.
In effect since September 1st, but only now are the details known. The maximum rent cap varies depending on the location and number of bedrooms. Find out more in this episode of 'Economia dia a dia', Expresso's daily podcast.
The regulation for the new affordable housing scheme, which sets maximum rent limits by property type and municipality, was published this Tuesday.
The measure was introduced in the 2025 State Budget and will continue to be in effect in 2027.
Clarification on whether foreign nationals under 35 residing in Portugal qualify for tax exemptions on first-time home purchases and eligibility for the government's public guarantee scheme.
The measure is an exception in the legislation.
Purchasing land to build a house intended for residential rental does not qualify for the capital gains tax exemption, a measure created by the government of Luís Montenegro to boost the rental market. The Tax Authority (AT) clarifies, in a binding ruling, that the new regime only covers the acquisition of already constructed properties, excluding...
The bill now moves to the Presidency of the Republic for promulgation.
The Government's bill, the bills from the Left Bloc, Chega, and Livre, and the resolution project from PAN were approved.
If the compensation resulted from a court decision, the tax exemption would be automatically guaranteed.
The proposal provides that the tax exemption will also be applicable to financial compensation awarded for sexual abuse of minors and vulnerable adults in other similar situations.
The Government announced its intention to exempt financial compensation for victims of sexual abuse in the Catholic Church from income tax.
Created in 2019, the PAA provides a full tax exemption to landlords who charge rents 20% below the market median.
The Tax and Customs Authority (AT) should refund the IMT property transfer tax to young people who were unable to benefit from the tax exemption because they hold a share in an undivided inheritance containing real estate, argues the head of the Order of Notaries in statements to Lusa. On May 15, the AT clarified that the existence of a share in an undivided inheritance, with...
Young people up to 35 years old who applied for the IMT and IS exemption could be excluded from the benefit if they held a share in an undivided inheritance that included residential properties.
Young people up to the age of 35 who only hold a share in an undivided inheritance consisting of houses do not lose the right to exemptions from Municipal Property Transfer Tax (IMT) and Stamp Duty (IS) when purchasing their first permanent home, the tax authority clarifies. This understanding is contained in an information note.
Young people under 35 will be exempt from IMI for five years in Covilhã. They only need to purchase their first permanent primary residence in the municipality.
Young people under 35 will be exempt from IMI property tax for five years in Covilhã. They only need to purchase their first permanent primary residence in the municipality.
The Ministry of Finance explains that this exclusion will also be applicable to financial compensation awarded for sexual abuse of minors and vulnerable adults in other similar situations.
In response to the Ministry of Finance's intention to exempt compensation for victims of church abuse from income tax, the Corações Silenciados association is pleased but argues that there are still cases to be recognised.
The government has announced that compensation payments for sexual abuse victims will be exempt from IRS income tax.
The government proposes an IRS tax exemption for victims of sexual abuse.
