Capital gains tax (pre-1989 acquisition)

Financial section

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What has been a “grey” area in the Portuguese tax law concerning pre-1989 acquisition of properties by non-resident or “offshore” companies has now been resolved by the Portuguese Finanças.

There is NO exemption from payment of capital gains tax on profit made by such a company on sale of the property from its ownership. The usual deductions of capital improvement expenses made in the 5 years prior to the disposal, real estate agents selling fees (if applicable) and application of the Government inflation coefficient can be used to reduce the liability, but the tax must be paid within 30 days following the disposal.

Contact Sovereign Lda if you need further help.

 


 

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