Tool · Updated 24 September 2026
Portugal selling calculator: capital gains tax and what you walk away with
Portugal taxes 50% of the gain on a property sale at progressive rates of 12.5% to 48% (2026). For non-residents, the rate is the average rate on their total worldwide income. The gain is the sale price minus the purchase price (uplifted for inflation if held two years or more), purchase costs, documented works from the last 12 years, and selling costs such as agent commission including 23% VAT. In the first worked example below (a UK resident selling an Algarve villa bought in 2016 for €300,000), the Portuguese tax is €37,085 on a €189,025 gain (19.6% of the gain).
- Agent commission incl. 23% VAT
- €39,975
- Inflation coefficient on purchase price
- 1.19
- Gain for Portuguese tax
- €189,025
- Taxable (50% of the gain)
- €94,513
- Portuguese capital gains tax
- €37,085
- As a share of the gain
- 19.6%
- UK tax before credit
- £53,151
- Less credit for Portuguese tax
- − £31,893
- UK tax still to pay
- £21,258
- Early mortgage repayment fee
- €0
Estimate only. It uses the 2026 income tax table and the 2025 inflation coefficients (the 2026 table is due in November). It ignores reliefs such as reinvesting in a main home or a moderate-rent rental.
Worked examples
Three typical sales, calculated with the same formula as the calculator above.
UK resident, Algarve villa bought 2016
| Sale price | €650,000 |
| Purchase price × inflation coefficient (1.19) | €357,000 |
| Purchase costs + works | €62,000 |
| Commission incl. VAT + other selling costs | €41,975 |
| Gain | €189,025 |
| Taxable in Portugal (50%) | €94,513 |
| Portuguese tax (non-resident, average rate with €30,000 other income) | €37,085 |
| UK CGT 24% on £221,462, less credit | £21,258 top-up |
| Net proceeds | €546,222 |
Non-resident (outside UK), Lisbon flat bought 2019
| Sale price | €420,000 |
| Purchase price × inflation coefficient (1.17) | €292,500 |
| Purchase costs + works | €33,000 |
| Commission incl. VAT + other selling costs | €27,330 |
| Gain | €67,170 |
| Taxable in Portugal (50%) | €33,585 |
| Portuguese tax (non-resident, average rate with €45,000 other income) | €11,371 |
| Mortgage repaid + early repayment fee | €120,600 |
| Net proceeds | €260,699 |
Portuguese resident, Cascais house bought 2012, not reinvesting
| Sale price | €900,000 |
| Purchase price × inflation coefficient (1.20) | €540,000 |
| Purchase costs + works | €90,000 |
| Commission incl. VAT + other selling costs | €46,780 |
| Gain | €223,220 |
| Taxable in Portugal (50%) | €111,610 |
| Portuguese tax (resident, added to €25,000 other income) | €50,919 |
| Net proceeds | €802,301 |
The formula
- Gain = sale price − (purchase price × inflation coefficient) − purchase costs − documented works in the last 12 years − selling costs.
- Taxable amount = 50% of the gain (article 43 of the IRS Code, for residents and, since 2023, non-residents).
- 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.
- Residents: the taxable amount is added to your other income and taxed at the progressive rates; the tax on the sale is the increase.
- 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
| Taxable income up to | Marginal rate |
|---|---|
| €8,342 | 12.5% |
| €12,587 | 15.7% |
| €17,838 | 21.2% |
| €23,089 | 24.1% |
| €29,397 | 31.1% |
| €43,090 | 34.9% |
| €46,566 | 43.1% |
| €86,634 | 44.6% |
| Above €86,634 | 48.0% |
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.
More detail: capital gains tax for non-residents, selling as a UK resident, all the costs of selling and the 2026 reinvestment exemption.
Sources
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 24 September 2026.
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