Capital gains tax in Portugal

Portugal operates a bifurcated capital-gains framework under the Codigo do IRS (CIRS). The rules differ substantially depending on whether the asset is a financial instrument (shares, funds, bonds), real estate (imoveis), or a crypto-asset. Residents are taxed on worldwide gains; non-residents face Portuguese tax only on Portugal-sourced disposals.

How are gains on shares and securities taxed?

Capital gains on shares, bonds, investment-fund units, and derivatives are Categoria G income under CIRS Article 10 and are subject to a 28% autonomous (flat) rate under CIRS Article 72 [1]. The 28% rate functions as a final withholding-style levy -- a resident taxpayer who realises EUR 10,000 of listed-share gains owes EUR 2,800 regardless of total income. Losses within the category can offset gains in the same year; any net loss carries forward for up to five years [2].

A resident taxpayer may instead elect to aggregate (englobamento) all Category G gains with other income and pay at the progressive IRS scale, which is advantageous only when the marginal rate on the total aggregated income falls below 28% [1]. Mandatory aggregation applies when taxable income (including gains) reaches the highest bracket threshold of EUR 86,634: short-term gains (assets held under 365 days) must then be included at the top marginal rate [2].

Lei n.o 31/2024 introduced holding-period exclusions for securities admitted to trading: 10% of the gain is excluded if the asset was held 2-5 years, 20% for 5-8 years, and 30% for 8 or more years, reducing the effective rate on long-held securities from 28% to as low as 19.6% [3].

How are real-estate gains taxed for residents?

Real-estate capital gains (mais-valias imobiliarias) under CIRS Article 10 follow a different track: only 50% of the net gain is included in the resident taxpayer's taxable income, and that 50% is then taxed at the applicable progressive IRS rates rather than the 28% flat rate [1] [2]. This produces effective rates of roughly 6.5% to 24% on the full gross gain for most taxpayers.

The acquisition cost may be adjusted upward using the coeficiente de desvalorizacao da moeda (monetary depreciation coefficient) published annually by the Autoridade Tributaria e Aduaneira (AT), but only when 24 or more months have elapsed since acquisition [3]. This inflation adjustment -- set each year by portaria (the 2025 coefficients were approved by Portaria n.o 382/2025/1) -- materially reduces the taxable gain on older properties. Documented capital improvements made in the 12 years preceding disposal are also deductible from the sale proceeds.

The primary-residence reinvestment exemption (reinvestimento de habitacao propria e permanente) under CIRS Article 10(5) provides a full CGT exemption if the net proceeds from selling a main home are reinvested in another qualifying primary residence in Portugal, the EU, or the EEA [1]. The reinvestment window runs from 24 months before to 36 months after the disposal date. The property must have served as the taxpayer's permanent principal residence. The exemption must be declared on the annual Modelo 3 IRS return -- it is not applied automatically.

How are crypto-asset gains taxed?

Portugal's dedicated crypto-asset tax regime took effect on 1 January 2023 under Lei 24-D/2022 (the 2023 State Budget Law) [4]. Capital gains on the onerous disposal of crypto-assets are placed in Category G under CIRS Article 10(22). The key rule: gains on crypto-assets held for 365 days or more are exempt from IRS. Gains on assets held for fewer than 365 days are taxed at the 28% flat rate, with the same aggregation option available to residents as for securities.

Crypto-to-crypto exchanges are not immediately taxable under the Portuguese framework; the new asset takes on the cost basis of the asset exchanged, and the holding period clock resets. The 365-day exemption does not extend to crypto-assets classified as securities (e.g. certain tokenised equity instruments) -- those follow the securities rules above. NFTs are expressly excluded from the regime [4]. Staking and delegated-staking income falls under Category E (investment income) at 28%, without a holding-period exemption [4]. DAC8-aligned reporting obligations for platforms serving Portuguese clients take effect for tax years from 1 January 2026.

What rate applies to non-residents?

Non-residents disposing of Portuguese-source assets face a 28% flat rate on both securities gains and real-estate gains (the latter applied to the full gain, not just 50%) [1]. Residents of EU or EEA member states may elect to be treated as residents for this purpose, triggering the 50% inclusion rule and progressive rates for real estate -- an option introduced after EU legal challenges to Portugal's earlier discriminatory flat-rate treatment of EU sellers [2].

Asset-type summary

For residents considering the aggregation option on securities gains, the solidarity surcharge must be factored in: an additional 2.5% applies to taxable income above EUR 80,000 and 5% above EUR 250,000, producing a combined top rate of 53% (48% + 5%) on the highest earners [1]. The 28% flat rate nearly always results in a lower combined liability for taxpayers in mid-to-upper brackets.

Gains are reported on Modelo 3 (Annex G for Portuguese-source gains, Annex J for foreign-source gains) filed with the Autoridade Tributaria e Aduaneira via the Portal das Financas at portaldasfinancas.gov.pt. The filing window runs from 1 April to 30 June for the prior tax year, with any tax due by 31 August [2].

Portugal's rules interact with the Portugal country overview and with double-taxation agreements that may allocate taxing rights differently for non-resident sellers. Specific situations -- particularly those involving the 50% inclusion election for EU sellers, main-home reinvestment timing, or crypto classification questions -- call for review by a qualified Portuguese tax professional (contabilista certificado or advogado-tributarista) registered with the Ordem dos Contabilistas Certificados (OCC) or the Ordem dos Advogados. TaxPros Rated lists vetted professionals for Portugal; this page is a neutral informational summary, not professional guidance.