Who taxes the gain: article 13
| Asset sold by a Portuguese resident | Where taxed |
|---|---|
| UK house, flat or land | UK (and Portugal, with credit) |
| Shares in a company whose value is more than 50 % UK property (in the 365 days before the sale) | UK (and Portugal, with credit) |
| Shares, funds, ETFs, bonds, crypto — UK or anywhere else | Portugal only |
| Portuguese property | Portugal only |
The rule is symmetrical: a UK resident who sells a Portuguese flat is taxed in Portugal, and HMRC credits the Portuguese tax.
- 28 % Portuguese flat rate on gains on shares and funds (or add them to income by choice)
- 50 % of a property gain enters Portuguese taxable income at progressive rates
- 18 % / 24 % UK rates after the £3,000 annual exempt amount
- 5 years the UK "temporary non-residence" window that catches gains realised abroad by returning residents
Portugal’s rules, asset by asset
Shares, funds, ETFs, bonds. The net gain of the year is taxed at 28 %. Since 2024 (Lei n.º 31/2024) listed securities and open-ended funds held more than two years lose 10 % of the gain from the tax base, 20 % after five years and 30 % after eight. Gains on assets held under 365 days must be added to general income when your taxable income is in the top bracket (above 86 634 €), so a high earner’s short-term trading is taxed at 48 % rather than 28 %. Losses carry forward five years, but only if you opt to add the category to your general income. Gains on shares of micro and small unlisted companies count at 50 %.
Property. Half of the gain — sale price less indexed purchase price, purchase costs, documented improvements of the last twelve years and selling costs — is added to your other income and taxed at the progressive rates. A main home is exempt when the proceeds, net of any mortgage repaid, are reinvested in another main home in Portugal or the EU/EEA between 24 months before and 36 months after the sale; sellers aged 65 or retired may instead buy an annuity or pension product within six months. A property that was your main home before you arrived qualifies for the exemption only if it was the home you occupied at the time of sale.
Crypto. Gains on crypto-assets held 365 days or more are outside tax; shorter holdings are taxed at 28 % on the gain, and staking or mining income is business income.
Foreign tax. Gains the treaty leaves to the UK (UK property) are still declared in annex J; the UK CGT is credited up to the Portuguese tax on the same gain (art. 81.º).
The UK’s rules once you are non-resident
- UK property and land. Non-residents pay CGT on all UK land since 6 April 2019 (residential since April 2015), with rebasing to the 2015 or 2019 value. The disposal must be reported and the tax paid within 60 days of completion even if no tax is due.
- Everything else. Non-residents are outside UK CGT on shares, funds and other assets — unless they come back. Under the temporary non-residence rules, a person who was UK resident in four of the seven years before leaving and returns within five years is taxed on return on gains made abroad on assets held before departure. Sell after the fifth anniversary, or accept that HMRC will tax the gain in the year you return.
- Rates. 18 % within the basic-rate band, 24 % above, after the £3,000 annual exempt amount; the same rates for residential property. Private residence relief covers the home you lived in, with a final nine months always exempt.
Timing the move
| Situation | Better sold while UK resident | Better sold after becoming Portuguese resident |
|---|---|---|
| Share portfolio with large gains, basic-rate taxpayer | 18 % beats 28 % | — |
| Share portfolio, higher-rate taxpayer, held over 8 years | 24 % | 28 % on 70 % of the gain = 19,6 % |
| UK main home | fully relieved in the UK; Portugal would tax half the gain at progressive rates once you are resident (no reinvestment relief unless it is still your home) | — |
| Crypto held over a year | 24 % | 0 % in Portugal |
| UK buy-to-let | 24 % now | 24 % later plus Portuguese tax on half the gain, credit for the UK tax |
The dates matter to the day. Portugal’s residence starts on arrival; the UK’s split year ends the day before. A gain realised in the gap belongs to one country only.
Steps we follow with clients
Inventory
Every asset, acquisition date and cost, currency. Portugal computes in euros at the dates of purchase and sale, which creates or erases gains on its own.
Decide what to sell before
Main home, long-held shares within the UK annual exemption, assets with UK losses to offset.
Rebase what you keep
Portugal does not rebase on arrival: the original cost is the base. Selling and repurchasing before the move resets it at UK rates.
Declare
Annex G (Portuguese assets) and annex J (foreign assets) of the IRS return, with the 60-day UK report for UK property.
We model the two systems on your actual portfolio before you fix a moving date, then file both sides: the UK 60-day return for property, the Portuguese annexes G and J with the credit. Talk to our accountants.
Questions
Does Portugal rebase my assets to their value when I arrive?
No. The gain is measured from the original acquisition cost, converted to euros at the historical rate. Gains that built up during your UK years are taxed in Portugal if you sell after arrival — one reason to crystallise before the move where UK rates are lower.
I hold an ISA. Is it still tax-free?
In the UK, yes. Portugal does not recognise the ISA wrapper: dividends and interest inside it are taxed at 28 % and gains at 28 % as they arise. Many clients close the ISA before leaving or accept the Portuguese tax.
What about a UK investment bond or offshore bond?
Portugal taxes the gain on surrender as capital income at 28 %, with one fifth of the gain excluded after five years and three fifths after eight for qualifying life-insurance contracts (IRS Code, art. 5.º n.º 3). The treaty leaves the taxing right to Portugal.
Sources and official references
- 2025 UK–Portugal Double Taxation Convention — art. 13 (capital gains: property and property-rich shares taxed where situated; other gains only in the residence state) — checked 18.9.2026
- gov.uk — Capital Gains Tax rates 2026/27: 18 % basic, 24 % higher; £3,000 annual exempt amount — checked 18.9.2026
- gov.uk — Capital Gains Tax for non-residents on UK property (all UK land since 6 April 2019; report and pay within 60 days) — checked 18.9.2026
- HMRC helpsheet HS278 — temporary non-residents: gains taxed on return if abroad 5 years or less after 4 of 7 years of UK residence — checked 18.9.2026
- Código do IRS, artigo 10.º — taxable gains; main-home reinvestment (n.º 5); crypto held 365 days excluded (n.º 22) — checked 18.9.2026
- Código do IRS, artigo 43.º — property gains at 50 %; listed securities: 10 / 20 / 30 % excluded after 2 / 5 / 8 years — checked 18.9.2026
- Código do IRS, artigo 51.º — improvements of the last 12 years and purchase/sale costs deductible; artigo 55.º — losses carried forward 5 years on aggregation — checked 18.9.2026
- Código do IRS, artigo 5.º n.º 3 — life-insurance and bond gains: 1/5 excluded after 5 years, 3/5 after 8 — checked 18.9.2026
- gov.uk — Tax when you sell your home: private residence relief, final 9 months always relieved — checked 18.9.2026
- Código do IRS, artigo 72.º — 28 % flat rate on securities gains; mandatory aggregation under 365 days for top-bracket taxpayers (n.º 14) — checked 18.9.2026