News

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.

We would like to point out straight away that this legislative change does not have retroactive effects, so in 2024 two tax regimes will come into force simultaneously. One for consumers who sell their permanent home by 10 September and another for those who sell after that date.

Measure, included in Mais Habitação by proposal of the PAN, allows owners of their own and permanent housing, acquired between 2020 and 2022, to go two more years without paying the tax.

The new Housing Strategy presented by the Government on May 10 has youth housing as its main pillar.

Decisions were released through two notes on the website of the Presidency of the Republic, without commenting on the diplomas.

Selling a house seems simple, but it actually entails some costs and taxes in Portugal that you should know in detail.