Flash News NA 10/16/2025
IRS and Real Estate Capital Gains: Are There Benefits Applicable to People with Disabilities in Portugal?
In this article, we analyze the tax framework for real estate capital gains under IRS, the exceptions provided for by law, and whether there is any specific treatment for taxpayers with a permanent disability equal to or greater than 60%.
1. General Framework
Real estate capital gains correspond to the profit obtained from the sale of a property belonging to the taxpayer’s private assets. They are considered category G income for IR purposes.
The capital gain is calculated using the formula:
Capital Gain = Realization Value – (Acquisition Value × Adjustment Coefficient + Appreciation Charges + Acquisition and Disposal Expenses)
For properties held for more than 24 months, a depreciation coefficient may be applied.
According to Article 43, No. 2, paragraph b) of the CIRS, only 50% of the capital gain is subject to taxation.
There is also a reinvestment regime applicable to permanent housing (HPP): if the property sold is the taxpayer’s HPP, and the proceeds are reinvested in the acquisition, construction, or improvement of another HPP, it is possible to obtain a full or partial exemption from taxation, provided the legal deadlines and conditions are met.
________________________________________
2. People with Disabilities and Capital Gains Taxation
Taxpayers with a permanent disability equal to or greater than 60% benefit from a more favorable tax regime in some income categories (notably A, B, and H).
However, category G (capital gains) is not covered by any specific exclusion or reduction related to disability.
This means that, even in cases of recognized incapacity, capital gains must be calculated and taxed according to the general rules, without any automatic reduction in the amount subject to tax.
When the income tax return is filed jointly (for example, between spouses), the special incapacity regime does not change the way capital gains are calculated, and the general CIRS rules apply.
________________________________________
3. Practical Recommendations
• Correctly calculate the value of the capital gain, documenting all acquisition, appreciation, and disposal expenses.
• Evaluate the possibility of applying the reinvestment regime, especially when it comes to owning and permanent housing.
• Ensure that supporting documents for expenses and reinvestment are properly organized.
• Consult an accounting professional to evaluate legal alternatives and tax optimization strategies.
________________________________________
Conclusion
Although the Portuguese tax regime provides benefits for people with disabilities in certain income categories, there is no specific exemption for real estate gains (category G). Therefore, these individuals must be taxed according to the general rules and can only benefit from the reinvestment regimes and exemptions applicable to permanent housing.
A detailed analysis of each case is essential to ensure tax compliance and take advantage of existing legal opportunities.
Nominaurea has a specialized accounting and tax consulting team ready to support individuals and businesses in efficiently managing their income, ensuring accuracy, security, and tax optimization.
