Capital Gains Tax Refund for Non-Residents in Portugal (2021–2022)

If you are a non-resident who sold property in Portugal in 2021 or 2022, you likely paid 28% income tax on the full amount of your real estate capital gains. In comparison, Portuguese tax residents were taxed on only 50% of their property gains.

The Court of Justice of the European Union (CJEU) ruled that this unequal treatment violates EU law, specifically Article 63 of the Treaty on the Functioning of the European Union, which guarantees the free movement of capital.

As a result, the Portuguese Tax Authority now allows non-residents to claim a refund of 50% of the income tax paid on real estate gains for 2021 and 2022. To qualify, you must provide proof of the purchase price and sale value of the property.

In cooperation with our Tax Experts, we assist non-residents in claiming their entitled refund.