Portugal selling calculator: capital gains tax and what you walk away with

Worked examples

Three typical sales, calculated with the same formula as the calculator above.

UK resident, Algarve villa bought 2016

Non-resident (outside UK), Lisbon flat bought 2019

Portuguese resident, Cascais house bought 2012, not reinvesting

The formula

1. Gain = sale price − (purchase price × inflation coefficient) − purchase costs − documented works in the last 12 years − selling costs.
2. Taxable amount = 50% of the gain (article 43 of the IRS Code, for residents and, since 2023, non-residents).
3. Non-residents: tax = taxable amount × the average rate that applies to your total income (other worldwide income + taxable amount), plus the solidarity surcharge on any part of the Portuguese taxable amount above €80,000.
4. Residents: the taxable amount is added to your other income and taxed at the progressive rates; the tax on the sale is the increase.
5. UK residents: the UK recalculates the gain in sterling (costs at the exchange rate on each date), applies 18% or 24% after the £3,000 allowance, and credits the Portuguese tax.

Property bought before 1 January 1989 is outside Portuguese capital gains tax. The inflation coefficient applies only if you held the property for at least 24 months. Early repayment fees on Portuguese housing loans are capped at 0.5% of the amount repaid (variable rate) or 2% (fixed rate).

Portuguese income tax rates, 2026

Plus a solidarity surcharge of 2.5% on taxable income between €80,000 and €250,000 and 5% above. Brackets from the 2026 State Budget (Lei 73-A/2025). In September 2026 the Government proposed further cuts for 2026 income; they are not yet law and are not included here.

Common questions

Do non-residents still pay 28% capital gains tax in Portugal?

No. Since 1 January 2023 non-residents are taxed on 50% of the gain at the progressive income tax rates, with the rate set by reference to their worldwide income. The flat 28% rate no longer applies to property sales.

Is tax withheld when I sell?

No. Portugal does not withhold tax from the sale price. You declare the gain on your Portuguese tax return (Modelo 3, Annex G) for the year of sale, filed between April and June of the following year.

Do I pay tax in the UK as well?

If you are UK resident, yes: the UK taxes the gain in sterling at 18% or 24% after the £3,000 annual exempt amount, and credits the Portuguese tax paid against it. You only pay the UK top-up, if any.

Why does my other income change the Portuguese tax if I live abroad?

Because a non-resident's rate is the average rate on their worldwide income plus the taxable half of the gain. On the first worked example, a non-resident with no other income pays €34,342; with €100,000 of other income the same sale costs €40,196. Enter your total worldwide income for the year of sale, before tax.

What if I have owned the property for less than two years?

No inflation coefficient applies, so the full purchase price is deducted without uplift. The calculator works by calendar year: if the sale year minus the purchase year is less than 2, it uses a coefficient of 1.00. The law's test is 24 months from purchase to sale, so check the exact dates if you are close to it.

What if I bought the property before 1989?

Property acquired before 1 January 1989 is outside Portuguese capital gains tax, so the calculator shows no gain and no Portuguese tax. A UK resident may still owe UK capital gains tax on the gain in sterling; the calculator does not estimate that case.

Does the calculator include the reinvestment reliefs?

No. It ignores main-home reinvestment relief (article 10(5) of the IRS Code) and the 2026–2029 exemption for reinvesting in homes let at a moderate rent (Decree-Law 97/2026). If either applies, your Portuguese tax could be lower or nil.

More detail: capital gains tax for non-residents, selling as a UK resident, all the costs of selling and the 2026 reinvestment exemption.

How much does your other income change the tax?

For a non-resident, less than you might expect. The rate is the average rate on your worldwide income plus the taxable half of the gain, so more income raises the rate on the gain only gradually. The table uses the first worked example (€650,000 sale, €189,025 gain) for a seller resident outside Portugal and the UK.

A Portuguese resident with €30,000 of other income would pay €43,231 (22.9%) on the same sale, because a resident's taxable gain is added on top of their income and taxed at their highest rates, not at an average rate. Two dates matter as much as income. If the same villa had been bought in 2025 rather than 2016, no inflation coefficient would apply and the non-resident's tax would be €50,967. If it had been bought before 1 January 1989, there would be no Portuguese tax at all. The 2026 inflation coefficients are due around November 2026; until then the calculator uses the 2025 table (Portaria 382/2025/1).

General information, not tax advice. This calculator gives an estimate under simplified assumptions; confirm your figures with a Portuguese tax adviser before you sell. Updated 22 October 2026.