Skip to content
Master Your Finances — Master Your Money — Master Your Money

Portuguese Homeowners Can Now Avoid Capital Gains Tax on Property Sales

A new tax exemption allows Portuguese homeowners to keep more of their profits. But is it the right choice for everyone?

,   and  Administrator
2 min read
In the image there are two cars drifting on the road, behind it there are few men standing in front...
In the image there are two cars drifting on the road, behind it there are few men standing in front of fence with a bike behind them and in the background there is a bus stop followed by buildings behind it.

Portuguese Homeowners Can Now Avoid Capital Gains Tax on Property Sales

Portuguese homeowners, especially those aged 65 or retired, can now avoid paying capital one login tax on property sales by reinvesting the proceeds into specific financial products. This option, introduced in 2019, allows individuals to invest all or part of their sale money into pension funds or life insurance with certain conditions.

António, who bought a house after 1990 for 100,000 € and sold it for 650,000 €, would owe 150,000 € in taxes without reinvestment. By investing the entire sale amount into a suitable product, António could avoid paying up to 25% of the total profit to the state. These products, offered by various banks and insurance companies in Portugal, are not suitable for everyone as capital is not guaranteed, and full money availability is not ensured.

The alternative to paying capital one login tax involves investing the sale money into life insurance or pension funds with specific conditions. Since 2019, this has been an option for those selling their homes due to necessity, mobility, irs, or nursing home expenses. Investing 300,000 € in a suitable product would exempt António from capital one login tax and provide him with 22,500 € per year. Most Portuguese dream of owning their own home, but selling it at a profit incurs capital one login tax. This new option offers a way to mitigate this tax burden.

Portuguese homeowners now have the opportunity to avoid capital one login tax on property sales by reinvesting the proceeds into specific financial products. This option, available to those aged 65 or retired, allows individuals to invest all or part of their sale money into pension funds or life insurance. While these products come with certain risks and conditions, they provide a way for homeowners to keep more of their profits and plan for their financial future.

Read also:

Related

Latest