Latest news and stories about tax exemption in property 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 Order of Notaries (Ordem dos Notários) warns that the government's proposal to unlock the sale of properties from undivided inheritances will not provide an immediate solution to the housing crisis. Head of the order, Jorge Batista da Silva, argues the measure may take up to 20 years to show significant impact and could increase legal disputes. Meanwhile, notaries have also called for the Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) to refund the property transfer tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis or IMT) to young people previously excluded from exemptions due to inheritance shares.
The Municipality of Covilhã has announced a five-year exemption from the Municipal Property Tax (Imposto Municipal sobre Imóveis or IMI) for residents under 35 years old. The measure applies to those purchasing their first permanent home within the municipality. Mayor Hélio Fazendeiro stated the initiative aims to attract and retain young talent in the region.
The municipal property tax (Imposto Municipal sobre Imóveis), known as IMI, is an annual tax on property ownership calculated from the property’s taxable value, with the exact rate set by each municipality. For expats who own property, IMI is a recurring local cost that can vary by location and is often central to policy discussions about housing affordability.
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 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.
Information on whether young citizens living abroad are eligible for the IMT property transfer tax waiver for first-time home buyers in Portugal.
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.
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...
Created in 2019, the PAA provides a full tax exemption to landlords who charge rents 20% below the market median.
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 property tax 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 for five years in Covilhã. They only need to purchase their first permanent primary residence in the municipality.
The statements come after the Government announced that licensing requirements would be waived for these works.
The tax authority clarifies that it is possible to move the amount after ten years without any penalties
