August 16, 2022
The Portuguese Parliament approved, on May 27 2022, the State Budget for 2022, bringing some changes, applicable as from January 1 2023, in the taxation of capital gains from the sale of shares or other securities, such as participating units.
In accordance with the rules currently in force (until December 31, 2022), the positive balance of any capital gains and losses from the sale of shares or other securities is taxed, for personal income tax purposes, at a flat rate of 28%. This is regardless of the total amount of other income earned by the individual.
As from that date, depending on the income earned by the individual, as well as of the time of shares or other securities is held, this could result in a maximum capital gains tax rate of 53%.
As from 1 January 2023, where the individual’s total taxable income, including capital gains, is equal to or greater than €75,009 and, cumulatively, the shares or securities have been held for less than 365 days before the sale, there will be a significant increase in the taxation of capital gains. In these situations, the positive balance of the capital gains and losses will be mandatorily taxed by aggregation at the general and progressive personal income tax rates.
Since the progressive rates are up to 48% (for taxable income above €75,009) and the surcharge will also be charged (at the rate of 2.5% for taxable income higher than €80,000 and 5% for taxable income above €250,000), the aggregate tax rate in Portugal applicable to such capital gains could reach up to 53%.
This shows that the Portuguese tax regime aims to heavily tax individuals with higher incomes.
The main objective of this new rules is to decrease a speculative market, especially in the real estate sector.
The Portuguese capital market may be affected by investors that will have the need to freeze certain transactions (to reach the 365-day holding threshold).
Considering the last information that came into public, this situation may not be reverted in a near future.
As informações acima não pretendem ser uma análise exaustiva à totalidade das alterações ao regime legal vigente, mas uma seleção daquelas que entendemos serem as mais relevantes, e não dispensam a consulta da nossa Empresa e/ou diplomas às quais as mesmas se referem.
Para mais informações contacte: Catarina Breia (+351 91 7575 832 ou email@example.com) do nosso Departamento Fiscal.