Tax refund for non-residents: property sales in Portugal

If you are not resident in Portugal and sold a property in 2021 or 2022, you probably paid 28% income tax on the entire capital gain on the property. In contrast, tax residents in Portugal were only taxed on 50% of their property gains.

The European Court of Justice (ECJ) ruled that this unequal treatment violates EU law, in particular Article 63 of the Treaty on the Functioning of the European Union, which guarantees the free movement of capital. As a result, Portuguese tax law was amended.

As a result of this ruling, the Portuguese tax authorities now accept applications from non-residents for a refund of 50% of the income tax paid on property gains for the years 2021 and 2022. The prerequisite is proof of the purchase price and sale price of the property.

In cooperation with our tax experts, we support eligible persons in claiming their refund.