How the gain on selling a home is calculated
The capital gain ("mais-valia") is the sale price minus the purchase price, after three adjustments:
- Correct the purchase price: multiply it by the inflation coefficient of the year you bought, when more than 24 months passed between purchase and sale (article 50 of the IRS Code).
- Add the costs: IMT, stamp duty, deed and registration on the purchase, the agent's commission on the sale and improvement works of the last 12 years, all invoiced (article 51).
- Tax half: only 50% of the balance counts for IRS (article 43(2)) and it is added to your other income of the year.
If the value used for IMT is higher than the deed price, that value counts, on the purchase and on the sale (articles 44 and 46).
The inflation coefficients
The coefficients are set every year by a ministerial order (portaria). The latest is Portaria n.º 382/2025/1 of 11 November, for properties sold in 2025. The coefficients for 2026 sales come in a new order, usually in October or November: until then, the calculator uses the 2025 ones.
| Year of purchase | Coefficient |
|---|---|
| 2000 | 1.67 |
| 2001 | 1.55 |
| 2002 | 1.49 |
| 2003 | 1.45 |
| 2004 | 1.43 |
| 2005 | 1.40 |
| 2006 | 1.34 |
| 2007 | 1.32 |
| 2008 | 1.28 |
| 2009 | 1.30 |
| 2010 | 1.28 |
| 2011 | 1.24 |
| 2012 to 2015 | 1.20 |
| 2016 | 1.19 |
| 2017 | 1.18 |
| 2018 to 2020 | 1.17 |
| 2021 | 1.16 |
| 2022 | 1.06 |
| 2023 | 1.02 |
| 2024 | 1.00 |
Years before 2000 are in the order and in the calculator. A property bought before 1 January 1989 pays no IRS on the gain (article 5 of Decreto-Lei n.º 442-A/88), except building land: the sale is reported in Anexo G1.
Selling your own permanent home: reinvestment
The gain on the home you lived in is excluded from IRS if you reinvest the sale price, minus the mortgage repaid with the sale, in another own permanent home (article 10(5)):
- Deadline: from 24 months before to 36 months after the sale.
- Where: in Portugal, or another EU or EEA state that exchanges tax information.
- Conditions: the sold home was your tax address in the 12 months before, and the new one becomes your own permanent home within the legal deadline.
- Return: state the intention to reinvest, and the amount, on the return for the year of the sale.
With a partial reinvestment, only the proportional part of the gain is excluded (article 10(12)). Example: you sell for €300,000, repay €100,000 of mortgage and reinvest €100,000: you reinvested half of the €200,000 to reinvest, so half of the gain is excluded.
Resident or non-resident
Since 2023, a non-resident pays on 50% of the gain, like a resident: Lei n.º 24-D/2022 (2023 State Budget) revoked the 28% flat rate. The rate comes from the progressive scale, set from all your income, including income earned outside Portugal, which only serves to fix the rate. The sale is reported in Anexo G of the Modelo 3 return.
When to report it
- In the year of the sale: keep the purchase and sale deeds, the invoices for works and costs and proof of the mortgage repaid.
- From 1 April to 30 June of the following year: report the sale in Anexo G of the IRS return, with the intention to reinvest if relevant.
- After reinvesting: if the conditions are not met in time, the gain becomes taxable.
For information only, not tax advice. Sources: IRS Code (articles 10, 43, 44, 46, 50, 51, 68, 68-A, 69 and 72), Portaria n.º 382/2025/1 of 11 November, Lei n.º 24-D/2022 (2023 State Budget), Lei n.º 73-A/2025 (2026 State Budget), Decreto-Lei n.º 442-A/88 (article 5) and Decreto-Lei n.º 97/2026 of 20 May. Last reviewed: 12 October 2026.