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Engel & Völkers Licence Partner Quinta do Lago - Vale do Lobo - Algarve - Portugal > Blog > New Capital Gains Law

New Capital Gains Law

Extended Exemption for Property Sales after 12 Months

We have great news about the new capital gains law that has just been approved by the Government. This change is especially relevant for those considering selling a property and planning to purchase another.

Key Changes:

  • Reduced Period: The capital gains tax exemption now applies to properties purchased only 12 months ago, instead of the previous 24 months.
  • Labour Mobility: The measure aims to facilitate geographic mobility for work-related reasons, removing fiscal obstacles.
  • How It Works:

  • Purchase and Sale: If you buy a house in 2024, you can sell it the following year and benefit from the tax exemption, provided you purchase another property for primary residence.
  • Fiscal Domicile: Proof of change of fiscal domicile is required to benefit from this exemption.
  • Approval and Next Steps:

  • The measure was approved by the Council of Ministers on 27 May 2024 and is now awaiting validation in Parliament.

  • This new law provides more flexibility and opportunities for those who are looking to invest. To find out how this change could benefit your specific situation, contact us today! We are available to provide you with all of the information you need and help you realise your projects in the world of real estate.


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    Engel & Völkers
    Licence Partner Quinta do Lago - Vale do Lobo - Algarve - Portugal
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