Divorce: Changing Address Causes Loss of Capital Gains Exemption
Divorce brings with it several changes in the lives of the ex-spouses, with the issue of tax address and the impact on the sale of the family property being one of the most sensitive and relevant topics. In Portugal, the legislation provides tax benefits for those who sell their own and permanent residence, namely the exemption from capital gains in terms of IRS, provided that the value of the sale is reinvested in the acquisition of a new home for habitual residence. However, after a divorce, the change of address may dictate the loss of this benefit, even if the former spouse continues to bear financial burdens related to the property.