Sold your home in 2025? The new capital gains exemption does not apply
Decree-Law 97/2026 of 20 May lets you leave out of IRS the gain from selling your own permanent home if you reinvest the money in a property let out as housing. It covers sales from 1 January 2026 to 31 December 2029. The Tax Authority has confirmed in binding information PIV_31329 that a home sold in 2025 cannot use it, because the sale falls outside that period. The conditions: reinvest between 24 months before and 36 months after the sale, sign the lease within 6 months, keep the home let for at least 36 months in the first 5 years at no more than €2,300 a month, and do not sell it within 5 years. Only the reinvested part of the gain is exempt.
Why it matters for your move
If you plan to sell your home from 2026 on and buy a flat to let, the dates and the rent cap decide whether the gain is taxed. A sale in 2025 stays under the usual rules.
This is Re-locant.com’s own brief, written to explain what the update means for people moving to or living in Portugal. For the full original report, see the source below.