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List of Conventions for the Elimination of Double Taxation
Portugal has concluded numerous Double Taxation Agreements (DTAs) with various countries to avoid the double taxation of income and to foster international trade and investment.
Currency Depreciation Coefficients
In accordance with Ordinance No. 288/2024/1, issued on November 7, 2024, the currency depreciation coefficients to be applied to assets and rights sold during 2024 have been updated.
Onerous transfer of property not used as tax residence – Reinvestment
(PIV 27385)
The applicant requests Binding Information regarding the requirements to benefit from the exclusion from taxation of gains resulting from the onerous transfer of real estate intended for own and permanent residence, as provided in paragraph 5 of Article 10 of the Personal Income Tax Code (Código do IRS).
The applicable coefficient for insurance mediation activity (PIV 24975)
The applicant requests binding information regarding the applicable coefficient, under the terms of Article 31 of IRS Code.
Disposal of a share in a business located in the UK (PIV 26949)
A taxpayer plans to sell part of his shares in a UK-based company and seeks confirmation that the 50% capital gains tax relief under Article 43(3) of the IRS Code applies.
Transfer of property partially allocated to local accommodation – Reinvestment (PIV 26330)
This case concerns whether capital gains tax relief under Article 10 applies when a main residence was partially used for local accommodation.
Property income – Deduction of the monthly installment paid for a contracted loan (PIV 26967)
This binding information clarifies whether loan payments for a student rental property are deductible from rental income under Portuguese tax law.
Sale of property affected by local accommodation activity and residential rental (PIV 26246)
Request for clarification on capital gains exemption when selling a former local lodging property, now rented, and using the proceeds to repay a descendant’s mortgage, under Article 50 of Law 56/2023.
Transfer of property – personal ownership (PIV 23360)
Clarification requested on applying the currency depreciation coefficient to capital gains from selling urban property within three years after business activity ends in Portugal.
NHR - Professional income earned in Portugal for an entity based in the USA (PIV 20772)
Clarification requested on the tax treatment of professional income earned by a NHR from online services to a U.S. company and the applicability of the exemption under Article 81(5) of the IRS Code.
Reinvestment - Acquisition of the usufruct of a property in which one already holds bare ownership (PIV 20577)
This analysis addresses whether acquiring usufruct over a property already held in bare ownership and related renovation expenses qualify as reinvestment for capital gains tax exemption.
Reinvestment - Disposal of a property that serves as the primary residence alternating with use for al (piv 23199)
This scenario explains the tax rules on selling a primary residence used partly for local accommodation and the conditions for benefiting from the reinvestment regime under current law.
Reinvestment in acquisition of property and in improvement works (piv 23651)
This document explains the conditions and procedures for claiming tax exemption on property sale gains reinvested in a new home and improvement works under Article 10(5) of the IRS Code.
Mandatory inclusion of capital gains from financial assets held for a period of less than 365 days (piv 25182)
The applicant seeks clarification on how short-term capital gains must be included in taxable income for joint taxation under Article 72(10) of the IRS Code.
Distribution of dividends from a foreign company to shareholders, taxation under nhr (piv 23801)
The applicant requests guidance on the Portuguese tax treatment of dividends from a Hong Kong company, seeking to know if they are exempt under NHR regime and the Portugal-Hong Kong tax treaty.
Onerous disposal of property partially allocated to local accommodation – Reinvestment (piv 25217)
The applicant seeks clarification on capital gains tax when selling a property partially used for local accommodation and reinvesting in a new permanent residence.
Onerous transfer of properties not intended for main residence – Application to the repayment of capital in debt from housing credit intended for main residence (piv 26471)
Clarification requested on the applicability of capital gains tax exemption when using proceeds from inherited property sales to repay housing credit for main residence under Article 50 of Law No. 56/2023.
Disposal of a property designated as a secondary residence (piv 25750)
The applicant asks if gains from selling a secondary residence are tax-exempt when used to help a descendant buy their main residence.
List of Countries with Favourable Tax Regimes under Portuguese Tax Law
Portugal considers certain jurisdictions as offering more favorable tax regimes, commonly referred to as tax havens or low-tax jurisdictions.
Taxation of Cryptocurrencies (PIV 23162)
This binding information clarifies the IRS tax rules for selling cryptocurrencies in Portugal during 2022, before the new crypto tax law took effect in 2023.
Rental Income – Receipt of overdue rent after termination of the lease agreement – Issuance of receipts
(PIV 25730)
The applicant requests Binding Information regarding the declarative procedures to be followed concerning the issuance of receipts for instalment amounts agreed upon in court relating to overdue rent.
Onerous Disposal of a property allocated to HPP (PIV 27375)
This document covers the tax treatment of capital gains from selling a main residence and reinvesting in two properties in Sweden.
Costly sale of a property partially used for al/local lodging – Reinvestment (PIV 25217)
A taxpayer plans to sell a partly AL-used main residence and reinvest in a new one, seeking clarity on eligibility for capital gains tax exemption.
NHR – Taxation of results attributed to partners by S-Corporation located in the USA (PIV 23980)
This binding information explains the tax treatment of U.S. S-Corp profits for a dual U.S.-Portugal citizen planning to move to Portugal under the NHR regime.
Transfer of property to personal sphere followed by disposal within a period of less than 3 years – minimum quotas of amortization (PIV 23359)
Request for clarification on which depreciations apply to capital gains from a property sold within three years after being withdrawn from local lodging use.
Withholding tax rate on industrial property income and copyright income (PIV 23033)
Clarification requested on whether inventors’ income from industrial property held by a university qualifies as Category B income, confirming it is subject to 16.5% withholding tax.
Reinvestment in the construction of property prior to the sale (PIV 20208)
Clarification requested on whether the 24-month reinvestment deadline starts from the habitation license or land registry registration date when building a new home before selling the old one.
Reinvestment - capital repayment into debt (PIV 23438)
Clarification requested on whether a loan assumed by an ex-spouse can count as reinvested capital under Article 10(5) of the IRS Code after selling a jointly owned residence.
Commencement of activity and ussuance of green receipts - swiss royalties (piv 26408)
This scenario covers the tax and double taxation rules for Swiss royalties, the impact of residency, and requirements for issuing receipts under Article 115.
Indication of property allocated to business activity (piv 23667)
This binding information explains how to correctly report business-allocated properties in the 2021 IRS Model 3, clarifying the impact of Law No. 75-B/2020 on real estate assets used in individual business activities.
Dividends obtained in the USA and Taiwan, mediated through a German Broker (PIV 26057)
Clarification requested on the taxation and double taxation relief applicable to dividends received by a Portuguese tax resident from foreign companies, specifically under the Non-Habitual Resident Regime and relevant double taxation agreements.
Right to deduction - electricity expenses (piv 25928)
The applicant seeks guidance on what documentation is needed to deduct VAT on electricity used by employees to charge company electric vehicles at home.
Onerous transfer of a residential property (piv 26200)
The applicant requests tax guidance on swapping a non-permanent residence for a lower-valued property and using the difference to reduce their main home loan.
Disposal of urban land – Application to the amortization of mortgage credit on own and permanent residence (piv 26287)
Clarification requested on whether capital gains from the sale of urban land qualify for IRS exemption when proceeds are used to repay a mortgage not originally contracted for the taxpayer’s primary residence.
Framework for income from the imputation to shareholders of the result of the liquidation of a non-resident company – NHR Regime (PIV 22922)
The applicant seeks clarification on the tax treatment and reporting of income from the liquidation of a Spanish company under the NHR regime.