Tax Authority Blocks Capital Gains Exemption for Reinvestment in Ruined Properties
Portugal's tax authority has clarified that purchasing a derelict property does not qualify for the capital gains exemption on personal income tax, even if the buyer intends to rebuild it as a residence. The exemption applies only when reinvesting proceeds from selling a primary home into a habitable property.
Why it matters for your move
Matters if you're selling a Portuguese home and planning to reinvest the proceeds tax-efficiently.
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.