Capital Gains Simulator 2026

Property capital gain in Portugal = sale price − (purchase price × devaluation coefficient + costs and works). Since 2023, residents and non-residents pay IRS on 50% of the gain, added to other income at progressive rates up to 48%. Selling your own home is exempt if you reinvest in another own home within 24 months before or 36 months after the sale.

Calculate capital gains tax (IRS) on a property sale in Portugal in 2026. Enter the purchase and sale prices, the year of acquisition and eligible costs to see the taxable gain and the estimated tax.

How the gain is calculated

• Adjusted purchase price — the purchase price is updated by the currency devaluation coefficients when more than 24 months pass between purchase and sale (article 50(1) of the IRS Code).
• Deductible costs — improvement works carried out in the last 12 years and the costs needed to buy and sell, such as IMT, Stamp Duty, notary and registration fees and the estate agent's commission, as long as they are documented (article 51).
• 50% inclusion — only half of the year's net property gains counts as income (article 43(2)(b)). The full gain counts when the property received non-repayable public support above 30% of its tax value and is sold within 10 years (article 43(2)(a)).
• Rates — the taxable half is added to your other income and taxed at the general rates of article 68, from 12.5% to 48% in 2026.

Residents and non-residents

Until 2022, non-residents paid a flat 28% on the whole gain. Following the EU Court of Justice ruling in case C-388/19, Law 24-D/2022 (the 2023 State Budget) repealed that flat rate (article 72(1)(a) of the IRS Code) and extended the 50% inclusion to non-residents. Since 2023 they are also taxed on half of the gain, at the progressive rates of article 68, and file a Portuguese IRS return (Annex G) for the year of the sale.

Reinvestment exemptions

• Permanent own home — the gain is excluded if the sale proceeds, net of any mortgage repaid, are reinvested in another permanent own home in Portugal, the EU or the EEA within 24 months before or 36 months after the sale, and the property sold was your own home for the previous 12 months (article 10(5)).
• Retired or aged 65+ — the gain is excluded if the proceeds are put, within six months, into a life insurance savings contract, an open pension fund, the public capitalisation scheme or a PEPP (article 10(10)).
• Capped-rent housing — for sales between 1 January 2026 and 31 December 2029, gains reinvested in homes let at rents within the limits of Decree-Law 97/2026 are also excluded (article 10(7) to (9)).

Worked example

A resident bought a flat in 2025 for €200,000, paying €8,000 in IMT, Stamp Duty and notary fees, and sells it in 2026 for €250,000 with a €12,500 agent's commission. Less than 24 months have passed, so no coefficient applies: the gain is €250,000 − €12,500 − €200,000 − €8,000 = €29,500, of which €14,750 (50%) is taxable. With €25,000 of other taxable income, the total rises to €39,750 and the extra tax is about €4,981 (part at 31.1% and part at 34.9%). Had the flat been the seller's own home, reinvesting the proceeds in a new own home within the deadlines would have excluded the gain.

Expert tax advice on property sales →