The exemption from taxation on capital gains obtained from the sale of properties to pay for a home loan will apply to transactions occurring between the beginning of this year and the end of 2024, with three months to invest the money.

These are some of the conditions to benefit from that exemption, according to the proposed law for the “More Housing” program, which has been available since Friday night, on the website www.consultalex.gov.pt and which can be found at public consultation until March 10th.

The program includes a transitional rule that provides that capital gains resulting from the sale of other properties held by a taxpayer who has taken out a loan to buy a house (to live in) benefit from IRS exemption, with this benefit also applicable to the sale of properties other members of the household.

According to the Government’s proposed law, this tax exemption applies “only to transmissions made between January 1, 2023 and December 31, 2024”.

The draft diploma also determines that in order for this exemption to be applicable, the property sold must not be used as the taxpayer’s own permanent home and that the sale value (deducted from existing loan amortization) must be applied to the amortization. “capital outstanding in housing credit intended for the taxpayer’s or his descendants’ own and permanent housing”.

Furthermore, it is also necessary (and the conditions are cumulative) that the amortization “is completed within a period of three months from the date of completion”.

If the value of the sale of this property exceeds the amount applied to amortize the credit of the house where the taxpayer lives, the excess will be taxed in accordance with IRS rules for capital gains.

The “More Housing” program will return to the Council of Ministers on Thursday, March 16th, the date on which the measures that do not need to be submitted to parliament and the proposed law that the Government will send to the Assembly of the Republic will be approved. . Among the measures included in this program – whose value is estimated at 900 million euros – are rent support, rental incentives, the creation of an extraordinary contribution to local accommodation and the suspension of new licenses for this activity.

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