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Portugal property capital gains calculator

Enter acquisition + sale details — see the gross gain, primary-residence exemption, 50% reduction for residents, and the lower of 28% flat vs progressive IRS. References the CIRS articles behind every line.

TRANSACTION
COSTS & IMPROVEMENTS
SELLER
The 2025 Portaria coefficient is not yet officially published. This calculator uses a projected coefficient (~3.5% above 2024 table). Confirm when Portaria is published.
ESTIMATED IRS DUE€11,84428% flat is lower than progressive IRS — recommended.
Effective sale price (sale price)€380,000
Acquisition cost × 1.38 (inflation coeff.)− €276,000
Acquisition + sale expenses + improvements− €19,400
Gross gain (CIRS Art 43)€84,600
CIRS Art 10 nº 5—
No reinvestment declared — gain is taxable. Reinvesting in a new HPP within 36 months would exempt the gain.
Net gain after exemptions€84,600
Taxable gain (50% included — CIRS Art 43 nº 2)€42,300
RATE COMPARISON
28% flat rate (CIRS Art 72 nº 1)€11,844
Progressive IRS — gain tops out at 45%€18,469
Recommended (lower of both)€11,844
Next stepsDeclare the sale on Modelo 3, Anexo G (Cat G income). Select the flat 28% or progressive rate in Quadro 8.If reinvesting in a new HPP, keep all documentation and declare within the reinvestment window (24 months before / 36 months after sale).Gather escritura, invoices for all costs, and caderneta predial (for VPT). The AT may request proof of improvement expenses.

Planning estimate. Inflation coefficients from Portaria nº 4/2025 (2024 sale year) or projected ×1.035 for 2025. IRS bracket rates per CIRS Art 68 / OE 2024. Primary residence exemption applies only to urban immovable property (CIRS Art 10 nº 5). Last verified 2025-01. Not tax advice.

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Frequently asked questions

How is the property capital gain calculated in Portugal?

Under CIRS Art 43 nº 1: gain = (effective sale price) – (acquisition cost × inflation coefficient) – acquisition expenses – sale expenses – capital improvements (last 12 years). The effective sale price is the HIGHER of the sale price or the VPT (CIRS Art 44 nº 2). The inflation coefficient applies only when the property was held more than 24 months.

Can I avoid capital gains tax on my primary residence?

Yes. CIRS Art 10 nº 5-6 exempts the gain if you reinvest the sale proceeds into a new permanent residence (HPP) within 24 months before or 36 months after the sale. If you reinvest only part of the proceeds, only the corresponding fraction of the gain is exempt. The property must be your declared fiscal domicile.

What is the 50% reduction on capital gains?

CIRS Art 43 nº 2: for Portuguese tax residents selling urban property, only 50% of the net gain enters the tax base. This effectively halves the taxable amount. Non-residents from outside the EU/EEA don't benefit — 100% of the gain is taxable at a flat 28%.

Should I choose the 28% flat rate or the progressive scale?

As a resident, you can elect either. The 28% flat rate (CIRS Art 72 nº 1 al. a) applies to the taxable gain (after 50% reduction). Progressive IRS adds the 50%-reduced gain on top of your other income — if your combined income stays in lower brackets, progressive can be cheaper. The calculator computes both and flags the lower option.

What inflation coefficient applies to my property?

Portaria nº 4/2025 published the official coefficients for 2024 sales. For 2025 sales, the Portaria hasn't been published yet — the calculator projects ~3.5% above the 2024 table. The coefficient applies only when the property was held more than 24 months (CIRS Art 47).

What can I deduct from the capital gain?

CIRS Art 43 + Art 51 allow: (1) the inflation-adjusted acquisition cost, (2) acquisition expenses (IMT, Imposto do Selo, notary, registry), (3) sale expenses (agent commission, notary, energy certificate), and (4) documented capital improvements in the last 12 years. Routine maintenance is not deductible.

I'm an EU citizen non-resident in Portugal — am I taxed at 28%?

By default yes. But CIRS Art 72 nº 9 lets EU/EEA non-residents elect to be taxed as Portuguese residents, which means the 50% reduction applies and you can compare flat vs progressive. You make the election on Modelo 3 (Rosto, Quadro 8B). This calculator shows the result of making that election.