Portugal Capital Gains Tax Guide 2026 — Crypto, Property & Shares

Q: Should I choose the 28% flat rate or aggregation for capital gains?

If other income is low and aggregation keeps you in lower IRS brackets, aggregation may be better. If income is already high, the 28% flat rate is likely preferable.

Q: What costs can I deduct from the gain when selling property?

Deductible costs include purchase price, IMT, stamp duty, notary and registration fees, agent commissions, and capital improvements. Ongoing repairs and IMI are not deductible against gains.

Q: How is the 365-day holding period calculated for crypto?

From acquisition date to disposal date. Each batch uses its own holding period (FIFO). Wallet transfers do not reset the period.

Q: Do I pay capital gains tax if I emigrate?

An exit tax may apply to long-term residents (10+ of last 15 years). Unrealised gains on certain assets may be deemed realised upon emigration. Deferral elections may be available.

Portugal taxes most capital gains at a flat 28% rate, with an option to aggregate gains with other income and tax them at progressive IRS rates (13–48%). Cryptocurrency held over 365 days is exempt. Property gains are calculated on only 50% of the profit. Shares held over 12 months may benefit from participation exemption.

Capital gains in Portugal fall under Category G (mais-valias) of IRS. The tax treatment depends on the asset type, holding period, and whether the gain is realised by a resident individual, a company, or a non-resident. Portugal offers some of the most favourable crypto tax treatment in Europe, with long-term holdings fully exempt. Property and shares have specific inclusion rates and exemptions that make Portugal attractive for certain investors.

Example: A resident sells a rental property purchased for €200,000 for €350,000. Profit: €150,000. Only 50% is taxable (€75,000). If the taxpayer elects aggregation, this €75,000 is added to other income. A single person with €30,000 salary would have total taxable income of €105,000, pushing into the 48% bracket. The 28% flat option would be €21,000; aggregation could be higher or lower depending on total income.

Capital Gains on Property

Residential property (primary residence): Gains are exempt from IRS if the sale proceeds are reinvested in another primary residence in Portugal (or EU/EEA) within 24 months (12 months before to 24 months after the sale). The reinvestment must be at least equal to the sale value. If partially reinvested, only the non-reinvested portion is taxable. Over-55s who sell their primary residence and reinvest in a qualifying lifetime annuity contract may also defer tax.

Secondary/residential property (not primary): 50% of the gain is included in taxable income. The taxpayer may choose: (a) flat rate of 28% on the included portion (50% of gain × 28% = 14% effective rate on the total gain), or (b) aggregation with other IRS income at progressive rates (13–48%). Aggregation may be beneficial in low-income years or when other deductions offset the gain. Acquisition costs (purchase price, IMT, stamp duty, legal fees, renovation costs) are deductible. The VPT at the date of sale is not the proceeds — actual sale price is used.

Non-residents selling Portuguese property: Taxed at a flat 28% on the total gain (no 50% reduction). Alternatively, if Portugal has a DTA with the seller's country of residence, the gain may be taxable only in the country of residence. Non-residents must appoint a Portuguese fiscal representative to file the return.

Capital Gains on Shares and Securities

Shares held <12 months: Gains are taxable at 28% flat or by aggregation at progressive IRS rates.

Shares held ≥12 months (qualifying holdings): Gains on the disposal of shares in Portuguese, EU, or EEA companies held for more than 12 months may be exempt under the participation exemption regime if the seller holds at least 10% of the share capital. For smaller shareholdings (<10%), gains are generally taxable at 28% regardless of holding period, though individuals may still opt for aggregation.

EU/EEA listed shares: Gains on shares listed on regulated EU/EEA exchanges are taxable. However, Portugal does not tax gains on the disposal of shares by non-residents who do not have a permanent establishment in Portugal (unless the shares derive more than 50% of their value from Portuguese real estate).

Crypto Tax

Portugal has a highly favourable crypto tax regime introduced in 2023:

Held >365 days: Gains are exempt from IRS. No tax is due on the sale of crypto assets held for more than one year, regardless of the profit amount.
Held <365 days: Gains are taxable at the flat rate of 28% (or can be aggregated with other IRS income at progressive rates 13–48%). Only profits from crypto-to-fiat or crypto-to-crypto transactions count as taxable events. Mining income is classified as self-employment income (Category B), not capital gains.
NFTs and DeFi: The tax treatment depends on the specific characteristics. Most NFTs held for trading purposes are treated as crypto assets subject to the holding period rules. DeFi yields and staking rewards may be classified as investment income (Category E) subject to 28% withholding if paid by Portuguese entities, or as capital gains for foreign platforms.

Filing requirement: All crypto transactions must be reported in the annual IRS return, including exempt holdings >365 days. Failure to report can result in penalties. Crypto held through Portuguese exchanges requires disclosure of wallet addresses.

Capital Gains for Companies

Companies include capital gains in taxable profit at the standard IRC rate (21%, or 17% for SMEs on first €50k). The participation exemption regime exempts gains on qualifying shareholdings (≥10%, ≥12-month holding, minimum substance and tax rate conditions). The reinvestment regime allows deferral of tax on gains from the sale of fixed assets if the proceeds are reinvested in qualifying assets within 2 years.

FAQs

Should I choose the 28% flat rate or aggregation for capital gains?

It depends on your total income. If your other income is low enough that adding the gain keeps you in lower IRS brackets (below ~€36,866 where the 37% bracket begins), aggregation may result in less tax than 28%. If your total income is already high, the 28% flat rate is likely better. The IRS return system calculates both options.

What costs can I deduct from the gain when selling property?

You can deduct the original purchase price, IMT paid at acquisition, stamp duty, notary fees, registration fees, real estate agent commissions, and capital improvements (renovations, extensions, major repairs). Ongoing maintenance costs and IMI are not deductible against the gain but are deductible against rental income if the property was rented.

How is the 365-day holding period calculated for crypto?

The holding period starts on the date of acquisition (purchase, mining, staking reward receipt) and ends on the date of disposal (sale, exchange for fiat, or crypto-to-crypto trade). For assets acquired at different times, each batch has its own holding period (FIFO basis is commonly used). Moving crypto between wallets does not reset the holding period.

Do I pay capital gains tax if I emigrate?

Portugal has an exit tax (saída de Portugal) on unrealised gains for residents who have been tax resident for 10+ of the last 15 years. When you cease residency, you may be deemed to have disposed of certain assets, triggering tax on unrealised gains. This applies especially to shares in Portuguese companies and crypto assets. An election to defer the exit tax may be available depending on the destination country's DTA provisions.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Capital gains tax rules are complex and depend on your specific circumstances and residency status. You should consult a qualified Portuguese tax professional for personalised advice.