Capital gains tax in Portugal (mais-valias) catches three very different moves — selling a flat in Lisbon, cashing out an ETF portfolio, or finally moving that Bitcoin you bought in 2018 — and taxes each under completely different rules. That's where most expats trip up: they assume one flat rate applies across the board, then get an unpleasant surprise from the Autoridade Tributária when the numbers don't match what a friend paid on a different asset.
This guide walks through how each asset class is actually taxed in 2026, how non-residents are treated, who counts as a resident for these purposes, and where the real exemptions sit. If you want to model a specific sale, our capital gains calculator gives a quick estimate before you read on.
The three systems: property, securities, crypto
Portugal doesn't run one CGT regime — it runs three, and each has its own rate, its own exemptions, and its own filing quirks.
Capital Gains tax in Portugal applies to the disposal of assets, property, shares, funds, bonds, intellectual property, and other capital assets, and it is taxed by asset category and residency status — property, shares, fund units, bonds, and other assets do not share one single calculation model. Get the category wrong and the whole calculation falls apart.
Property
Since 2023, in the case of non-residents, only 50% of capital gains arising from the sale of real estate is taxed, at marginal rates varying between 12.50% and 48%. This brought Portugal into line with an EU Court of Justice ruling that found the old system — a flat 28% on the full gain for non-residents versus a 50% exclusion for residents — discriminatory on free movement of capital grounds.
For residents, the mechanics are the same: only 50% of the resulting gain is included in taxable income, then taxed at progressive IRS rates ranging from 13.25% to 48%. The taxable half gets stacked on top of your other income for the year, so the effective rate on the total gain usually lands somewhere between 6% and 24%, not the headline 48%.
Two details catch people out. First, since 1 January 2023 the balance of capital gains and losses on securities held less than 365 days must be aggregated with other income once total taxable income reaches €86,634, and the same rule applies to gains taxed at the aggravated 35% rate for blacklisted jurisdictions. Second, for property bought decades ago, Article 50 of the Portuguese Income Tax Code allows the original purchase price to be adjusted upward for inflation using a monetary correction coefficient, which increases the recognised acquisition cost and reduces the taxable gain.
Pre-1989 properties are exempt outright. Properties acquired before 1 January 1989 are fully exempt from capital gains tax in Portugal, regardless of the sale price or the amount of the gain, and this exemption applies to both residents and non-residents.
Inheriting a property rather than buying one follows an entirely different set of rules — our Portugal inheritance tax guide covers how transfers on death are treated before any future resale.
Shares, funds and other securities
Securities sit in a different box entirely. As a general rule, capital gains will be subject to tax at a flat rate of 28%, though residents can elect to have gains taxed at progressive rates instead if that works out cheaper — usually only worthwhile if your marginal rate is well under 28%. There's a niche carve-out too: only 50% of capital gains arising on the sale of shares held on micro and small companies not listed in the stock exchange will be subject to taxation.
Non-residents get more favourable treatment on portfolio investments than most people expect. Non-residents are generally exempt from Portuguese CGT on shares and securities, provided certain conditions are met — the assets are not in a tax haven, and the seller does not hold more than 25% of a Portuguese company.
Crypto
Crypto is the one asset class with a genuinely simple rule attached to it: crypto held for more than one year is fully exempt from Portuguese CGT, while gains on crypto held for less than one year are taxed at 28%, applying from the 2023 tax year onwards. Crypto-to-crypto swaps aren't a taxable event, but be aware that from January 2026 exchanges start sharing transaction data with the Autoridade Tributária under new international reporting rules, so undeclared disposals are far easier to catch than they used to be. Regular trading activity or mining can also get reclassified as business income (Category B) rather than a capital gain — worth checking with an accountant if crypto is more than a side hobby for you. Our full Portugal crypto tax guide breaks down staking, DeFi yield and the new CARF/DAC8 reporting rules in more detail.
Quick comparison
| Asset | Resident rate | Non-resident rate | Key exemption |
|---|---|---|---|
| Real estate | 50% of gain taxed at progressive rates (12.5–48%) | Same 50% inclusion since 2023 | Primary residence reinvestment; pre-1989 purchase |
| Shares/securities | Flat 28% (or elect progressive) | Generally exempt if not tax-haven-linked and <25% stake | Holding-period reductions for long-held securities |
| Crypto | 28% if held <365 days | Same rule (Portugal-sourced context) | Fully exempt if held ≥365 days |
Capital gains tax in Portugal for non-residents
This is the part that trips up the most people, because non-resident capital gains tax in Portugal works very differently across asset classes — and the rules changed recently.
The starting principle is simple: a non-resident is taxed only on Portuguese-source gains. If you don't live in Portugal, Portugal generally doesn't reach your worldwide gains — only those arising here, most commonly from selling Portuguese property.
Property. Since 2023, non-residents selling Portuguese real estate are taxed on only 50% of the gain, at progressive IRS rates — the same 50% inclusion residents get. This ended the old, harsher system that taxed the full gain at a flat 28% for non-residents, which the EU Court of Justice found discriminatory on free-movement-of-capital grounds. A practical wrinkle: for non-residents the applicable progressive rate is determined by reference to your worldwide income, so a high earner abroad can still land in an upper band on the taxable half. You must file a Portuguese Modelo 3 return for the year of the sale even if you have no other Portuguese income — one of the most common and costly things non-resident sellers miss, because a foreign notary does not settle this for you.
Shares, securities and funds. Here non-residents are usually treated more favourably than residents. As a general rule, non-residents are exempt from Portuguese CGT on shares and other securities, provided the assets are not held in a blacklisted tax haven and you do not hold more than 25% of a Portuguese company. Where the exemption doesn't apply, the gain is taxed on the standard basis.
Crypto. For non-residents the same holding-period logic applies to Portuguese-source crypto gains — exempt after 365 days, 28% under a year — but whether a given crypto gain is even Portuguese-source is fact-specific, so confirm your position. Our full Portugal crypto tax guide covers the mechanics.
Double-taxation-treaty relief. Even where Portugal has the right to tax a gain, your home country may tax it too. Portugal's network of double taxation treaties (DTAs) decides which country taxes what and provides credit relief so the same gain isn't taxed twice — for example, a revised UK–Portugal treaty took effect from January 2026 with a credit mechanism. You will still typically file in both countries and claim the credit; the treaty reduces double tax, it doesn't remove the filing. Because treaty wording varies by country, confirm your specific position with Finanças or a cross-border adviser before you sign.
The primary residence reinvestment exemption
This is the relief everyone asks about. In the case of tax residents, the gain may be wholly or partially exempt where the property sold was the taxpayer's primary residence in the last 12 months and the sale proceeds, reduced by any outstanding loan balance, are reinvested in the acquisition, improvement, or construction of another primary residence in Portugal or within the EU within 36 months from the sale, or in the 24 months previous to the sale.
A few operational points that trip people up:
- It's residents-only. This relief is available only to residents, not non-residents. If you're not tax resident in Portugal at the time of sale, this door is closed.
- Declare intent up front. The intention to reinvest must be declared on the IRS return for the year of sale.
- Partial reinvestment = partial relief. Portuguese tax residents who reinvest the proceeds in a new primary residence within the EU or EEA within 36 months can be fully exempt, and the exemption is proportional if only part of the proceeds is reinvested.
- Retirees have an alternative route. Residents aged 65+ or retired can instead reinvest into an eligible pension fund, life insurance contract, or PPR savings product to secure the exemption — worth exploring if you're downsizing rather than buying again.
Miss the 36-month window and the exemption is gone, plus interest on the tax owed — so don't leave the reinvestment decision to the last minute.
Filing: what actually happens
Capital gains — property, securities, and crypto — get declared in your annual Modelo 3 IRS return, filed through Portal das Finanças between 1 April and 30 June. Non-residents selling Portuguese property still have to file a Portuguese return even without local income otherwise, and skipping this step is one of the more common (and costly) mistakes among sellers who assume a foreign notary handles everything. Foreign-sourced gains for residents go on Anexo J of the same return, since Portugal taxes worldwide income once you're tax resident here — broadly, 183+ days a year or a habitual home in the country, as covered in our tax and NIF pillar.
If you're weighing whether to become tax resident before or after a planned sale, that decision genuinely changes your CGT exposure — get advice before the move, not after.
Common mistakes
- Assuming NHR still helps. NHR closed to new applicants in March 2025, and even for existing holders it never gave an automatic exemption on capital gains from Portuguese assets. IFICI ("NHR 2.0") doesn't cover capital gains either — it applies to qualifying employment and self-employment income, though its foreign-source rules can still shelter certain foreign capital gains under Category G.
- Quoting the old 28% flat rate for non-resident property sales. That rule ended in 2023; several outdated blog posts still cite it.
- Forgetting the acquisition cost documentation. Agency fees, notary costs, and qualifying improvements from the last 12 years are deductible — but only with proper invoices.
- Not checking your DTA. If you're a UK resident, for example, a revised UK–Portugal double taxation treaty took effect from January 2026 with a credit mechanism so you're not taxed twice on the same gain — but you still generally file in both countries.
Frequently asked questions
Yes, on Portuguese-sourced gains — property gains most commonly, since non-resident securities gains are usually exempt subject to the conditions above.
Only if the new property is in the EU/EEA and you're a Portuguese tax resident at the time — non-residents don't qualify for this relief.
The exemption applies past the 365-day mark; sell a day early and the full 28% rate applies to the gain.
No general de minimis threshold exists for financial assets — even modest gains are technically taxable.
Every figure here depends on your specific residency status, asset history, and any applicable tax treaty — this isn't a substitute for a consultation with a Portuguese accountant before you sign anything. If you're also weighing where you'll be tax resident when the sale happens, our guides on becoming a tax resident, visas and banking in Portugal cover the groundwork, and relocation planning and living in Portugal fill in the rest.
Selling property, shares, or crypto in Portugal and not sure where you stand? Our tax advisory services can walk through your specific numbers with a licensed Portuguese accountant before you commit to a sale — get in touch before the deed, not after.