Government wants to reduce tax address deadline for selling a house without paying capital gains

The diploma, which will now be sent for consideration and voting in parliament, was approved by the extraordinary Council of Ministers

Capital gains from the sale of your own permanent home will become exempt if that house has been your tax address for the previous 12 months instead of the 24 previously required, according to a Government proposal.

The diploma, which will now be sent for consideration and voting in parliament, was approved by the extraordinary Council of Ministers that took place this Monday and in which several measures in the field of housing were approved.

With the Mais Habitação law, there was a minimum period (attested by the tax address) for a house to be considered as being owned and permanent and the capital gains generated from its sale could benefit from taxation exemption – if the money was reinvested in a new house intended for permanent housing.

The deadline then set out in the law, which came into force in October last year, was 24 months, but the new Government has now approved an amendment that reduces this minimum period to 12 months, aiming to “eliminate fiscal obstacles to geographic mobility for work reasons”. .

Thus, and as stated in the statement from the Council of Ministers, the period is reduced, from 24 to 12 months, of the “period prior to the date of transfer of own and permanent housing, proven through the respective tax residence, necessary for the exclusion of taxation of capital gains”.

 



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