Notes for international buyers
Selling for a Profit? Don't Forget the Taxman
Everyone hopes their property value goes up. But when you eventually sell your Algarve home, you may be liable for Capital Gains Tax ("Mais-Valias").
THE BASICS: This tax is applied to the profit you make (Selling Price minus Purchase Price). Only 50% of the gain is taxed, and since 2023 this also applies to non-residents.
THE LAWYER'S SECRET TO PAYING LESS: You can significantly reduce this tax by deducting specific expenses. But you must have the official invoices (Faturas) with your NIF. Deductible expenses include:
- Real Estate Agent fees (from the sale).
- IMT and Notary fees (paid when you bought).
- Home Improvements: Any capital improvements (new roof, pool, heating) made in the last 12 years.
MY ADVICE: Start a file today. Keep every single invoice related to home renovations. If you throw them away, you are literally throwing away money that could lower your tax bill later.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.