Latest news and stories about tax law in legal in Portugal for expats and residents.
The Central Administrative Court South has ruled that the sale of inherited properties before the estate is divided is subject to capital gains tax. This decision contradicts a previous stance by the Supreme Administrative Court, which generally exempted undivided inheritances from such taxation.
The Portuguese Communist Party (PCP) is seeking to ban the State from using arbitration to resolve tax disputes, arguing it creates an unfair double standard for large-scale debtors compared to ordinary citizens.
Tax authorities have ruled that homeowners cannot claim capital gains tax exemptions for selling property within one year of purchase if the household expansion, such as the birth of a child, occurred prior to the property acquisition.
The Portuguese Episcopal Conference, led by Bishop José Ornelas, has condemned the taxation of compensation payments made to victims of sexual abuse within the Catholic Church, labeling the practice as ethically unacceptable.
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.
The Supreme Administrative Court has ruled against taxing capital gains from the sale of undivided inheritances under personal income tax, yet the Tax and Customs Authority continues to challenge this stance, creating ongoing fiscal uncertainty for taxpayers.
The tax authority has restricted the scope of extraordinary rent support granted to companies by determining that the corporate income tax (IRC) benefit cannot reduce the tax liability below 90% of what would be due without this mechanism, despite the measure allowing taxable income related to rent gains to be lowered to 87%.
The legislator should not construct reactive responses to singular situations, however serious they may be. Tax law requires coherence, stability, and respect for the principle of equality.
Compensation payments for sexual abuse are not subject to IRS (personal income tax) in Portugal.
The Tax and Customs Authority (AT) will implement a new model for reducing tax benefits for people with disabilities, which comes into effect for re-evaluations carried out from 2024 onwards and, in practice, leads to a progressive cut in tax deductions over four years. The new system replaces...
Francisco Castro Guedes has begun a new professional phase: he has been promoted to Tax Law partner at SRS Legal. He reveals to Advocatus that this is an opportunity to consolidate and develop tax litigation and deepen relationships with clients. The lawyer stresses that it is essential to support companies not only in the litigation phase but also...
Luís Leon suggests that if victims of abuse in the Church do not claim the amount, the State could profit through income tax, as settlement compensations are subject to standard tax rates.
The taxation of the sale of properties belonging to undivided inheritances remains shrouded in legal and fiscal uncertainty. While the Supreme Administrative Court (STA) has been ruling against the application of capital gains tax in these operations, the Tax and Customs Authority (AT) maintains a divergent interpretation and warns of the possibility of taxation in...
The 1.6 million euros paid as 'reparation' are not exempt from taxes. In some cases, the financial compensation could be cut to half of the communicated value.
The 1.6 million euros paid as 'reparation' are not exempt from taxes. In some cases, the financial compensation could be cut to half of the communicated value.
Donations raised within the scope of a public petition are not subject to VAT, provided there is no associated consideration and they do not fall under an economic activity of the beneficiary. This position is stated in a binding information issued by the Tax and Customs Authority (AT) on March 31, 2026, and published on the Finance portal this Monday.
Sérvulo & Associados announces the promotion of Ana Moutinho Nascimento to equity partner and Joana Pinto Monteiro to salaried partner. “These promotions reflect the recognition of the merit, dedication, and technical excellence of both lawyers, as well as SÉRVULO's commitment to continue providing high-quality legal services.”
Real estate developers who proceeded with construction projects at a 6% VAT rate, supported by declarations issued by municipalities, are preparing to demand in court that the municipalities take responsibility for the high amounts now being demanded by the tax authorities. Read about this and other top stories in the national press this Tuesday. Developers are filing lawsuits against city councils.
Pragma Advogados has strengthened its team with partner and Tax department coordinator Ricardo Codeço. The lawyer moves from JPAB – José Pedro Aguiar-Branco Associados. “I am very happy and see this new challenge as an opportunity to actively contribute to the growth and consolidation of the Tax Law area at Pragma Advogados, reinforcing...”
With the desire to create a “highly specialised” legal project, focused on taxation and tax litigation, and “based on technical rigour” and “critical capacity”, António Gaspar Schwalbach decided to launch Spear Legal. The name stems from the idea of a spear – an instrument that combines strength, precision and direction, and it is this triad that inspires the identity.
Non-resident taxpayers in Portugal are subject to stricter rules regarding capital gains tax on real estate, being excluded from significant tax benefits such as the reinvestment scheme for primary and permanent residences, according to a recent binding ruling from the Tax Authority (AT) published on the Finance Portal. The interpretation comes in response to a...
The Tax Authority has closed the door on any flexibility regarding deadlines for reinvesting capital gains in a primary residence to qualify for an IRS exemption. In a recent binding ruling, the Tax Authority concluded that delays in urban planning licensing—even when proven—do not justify extending the 36-month legal deadline.
Most of the cases are currently in the appeal phase. Court decisions may take between three to 15 years.
The sale of a property received through inheritance is subject to personal income tax (IRS) when the asset itself is transferred, rather than the right to the inheritance or the hereditary share, clarifies the Tax and Customs Authority (AT) in a binding ruling published this Monday on the Finance Portal. The interpretation follows a request submitted...
