Capital Gains Tax in Portugal: Property, Shares and Crypto Explained
Capital gains in Portugal follow two tracks: a flat 28% for securities and short-held crypto, and half the gain added to income for property. How each works for residents.
For Portuguese tax residents, capital gains on shares, funds and crypto held less than 365 days are taxed at a flat 28%, with an option to add them to other income instead. Gains on property are different: only 50% of the gain is added to your income and taxed at the normal IRS rates. Crypto held 365 days or more is excluded from tax.
These rules come from articles 10, 43 and 72 of the IRS Code (Código do IRS) and are described here as of November 2026, for residents. Capital gains are called mais-valias, and losses menos-valias. The figures in your own case depend on purchase dates, costs and the rest of your income, so check with a certified accountant (contabilista certificado) before you sell anything large.
How are gains on shares, funds and crypto taxed?
The net balance of the year, gains minus losses, is taxed at a special rate of 28%, under article 72(1)(c) of the IRS Code. This covers the sale of shares and other securities, derivatives, warrants, certificates and crypto-assets held for less than 365 days.
- Option to aggregate (englobamento). Residents can choose to add the balance to their other income and pay the progressive rates instead (article 72(13)). This helps when your total income is low, since the lower IRS brackets are below 28%.
- Compulsory aggregation for short holdings. Gains on assets held under 365 days must be aggregated if your taxable income, including that gain, reaches the top IRS bracket (article 72(14)).
- Small unlisted companies. For shares in micro and small companies not listed on a stock market, only 50% of a positive balance is counted (article 43(3)).
Our guide to IRS tax brackets shows the progressive rates that aggregation would apply.
Is crypto taxed in Portugal?
Yes, but only on short holdings. Gains and losses on crypto-assets held for 365 days or more are excluded from tax (article 10(22) of the IRS Code). Below 365 days, the gain is part of the 28% balance described above.
When you exchange one crypto-asset for another, the law gives the crypto you receive the acquisition value of the one you gave up (article 10(23)), which in general moves the tax point to the later sale for money. Holding periods, swaps and stablecoins can be complex, and crypto earned through mining or professional trading falls under business income rules, not capital gains.
How is a gain on property calculated?
Under article 43(2), only 50% of the net gain from selling property in Portugal is counted, and it is added to your other income for the year at the progressive IRS rates. The full gain counts instead if the property got public non-repayable support worth more than 30% of its tax value and you sell within 10 years.
| Step (as of November 2026) | What goes in | Legal basis |
|---|---|---|
| Sale value | The price received, or the value used for the IMT transfer tax if higher | IRS Code, art. 44(2) |
| Purchase value, inflation-adjusted | Purchase price, corrected by official coefficients if more than 24 months passed between purchase and sale | Art. 50 |
| Plus costs | Documented improvement works in the last 12 years, and necessary costs of buying and selling | Art. 51 |
| Gain | Sale value minus adjusted purchase value and costs | Art. 43 |
| Taxable part | 50% of the gain, added to other income | Art. 43(2)(b) |
The coefficients are published every year by ministerial order (portaria). Purchase taxes paid when buying, such as IMT and stamp duty, are among the costs people usually add; our guide to taxes when buying property explains them.
Can I avoid tax by buying another home?
Yes, if you sell your own permanent home (habitação própria e permanente) and reinvest. Article 10(5) of the IRS Code excludes the gain when all of these conditions are met:
- The sale value, minus any mortgage on the old home that you pay off, is reinvested in buying, building or improving another own permanent home in Portugal or in another EU or EEA country with tax-information exchange.
- The reinvestment happens between 24 months before and 36 months after the sale.
- You state your intention to reinvest, and the amount, in the IRS return for the year of the sale.
- The home you sold was your own permanent home, shown by your tax address, in the 12 months before the sale (or before the reinvestment, if earlier).
- You move into the new home, with your tax address there, within 12 months of buying it.
Partial reinvestment gives a partial exclusion. If you or your spouse are retired or at least 65, article 10(10) allows a separate route: putting the proceeds into qualifying insurance or pension products within 6 months of the sale.
How do I declare capital gains?
Capital gains go on Annex G (Anexo G) of the IRS return, filed between 1 April and 30 June of the following year. Gains that are excluded from tax, such as crypto held 365 days or more, are reported on Annex G1, according to AT guidance as described by accountants. Foreign shares and accounts may also involve Annex J.
- Collect purchase and sale documents: deeds, broker statements, exchange histories and invoices for costs.
- Work out the holding period of each asset from its purchase date, since the 365-day tests depend on it.
- Fill in the annexes on the Portal das Finanças, and use the simulator to compare the 28% rate with aggregation.
- If you plan to reinvest in a new home, tick the intention and enter the amount.
Our guide to the IRS tax return covers the filing process and refunds, and the guide to tax residency explains how a split year works if you sell around the time you arrive or leave.
Bottom line
Timing drives most of the bill. Selling crypto a day before the 365-day mark can cost you 28% of the gain, and selling your home before you have lived in it as your tax address for 12 months closes the reinvestment route. Keep every purchase document from the day you buy, because the burden of proving costs is on you.
FAQ
Do I pay capital gains tax on a home I lived in?
Possibly, but you can exclude the gain by reinvesting in a new own permanent home within the time limits. Without reinvestment, 50% of the gain is taxed with your other income.
Can losses on shares offset gains?
Yes, within the same year’s balance for securities and crypto. A net loss can be carried forward for 5 years only if you opt for, or are required to use, aggregation (article 55 of the IRS Code).
Are gains on foreign shares taxed in Portugal?
Residents are taxed on worldwide income, including gains on foreign shares. A tax treaty may give a credit for tax paid abroad.
Do non-residents pay the same tax?
Non-residents follow separate rules on Portuguese-source gains, especially on property. Check with Finanças or an accountant before selling.
