Selling 1 bed apartment in an aparthotel in Portugal:Portugu motgage tax implications

[selfbuild99]

We have a 1 bed apartment in an aparthotel which we would like to sell.

We have a mortgage in Portugal at the moment.

Does anybody know what tax we might have to pay on the sale and would this only be on the profit e.g. bought apartment for 200,000 and sold for 220,000.

We will only be taxed on the 20,000?
Thanks

 

[omostra06]

Re: anyone sold a property in portugal recently?

yes, you will be taxed on any profit you make(capital gains) it is a different % if you are a resident to if you are not.
How they tax the profit, say 20,000 euros 50% of it is yours, the other 50% is taxed, so you will be taxed on 10,000 euros, less selling costs for estate agents and less any money spent on the property improving and modernising it, as long as you can produce reciepts, if you reinvest in portugal you may not have to pay any tax, allways best to check with a tax advisior before deciding which way is best.

 

[John Rambo]

Re: anyone sold a property in portugal recently?

yes, you will be taxed on any profit you make(capital gains) it is a different % if you are a resident to if you are not.
How they tax the profit, say 20,000 euros 50% of it is yours, the other 50% is taxed, so you will be taxed on 10,000 euros, less selling costs for estate agents and less any money spent on the property improving and modernising it, as long as you can produce reciepts, if you reinvest in portugal you may not have to pay any tax, allways best to check with a tax advisior before deciding which way is best.

Are you sure about that Omostra? Why do they only tax 50% of your gain and isn't the CGT rate in Portugal 25%?

 

[galwegian44]

Re: anyone sold a property in portugal recently?

Doesn't Portugal have a double taxation agreement with Ireland which will affect what CGT tax you pay on your profits?

yes, you will be taxed on any profit you make(capital gains) it is a different % if you are a resident to if you are not.
How they tax the profit, say 20,000 euros 50% of it is yours, the other 50% is taxed, so you will be taxed on 10,000 euros, less selling costs for estate agents and less any money spent on the property improving and modernising it, as long as you can produce reciepts, if you reinvest in portugal you may not have to pay any tax, allways best to check with a tax advisior before deciding which way is best.

 

[omostra06]

Re: Anyone sold a property in Portugal recently?

Yes its correct you will only be taxed on 50% of the profit, and yes portugal and the uk do have a double taxation agreement.

 

[asdfg]

Re: Selling 1 bed apartment in an aparthotel in Portugalortugu motgage tax implicat

Don't forget that you also pay tax - CGT @ 20 % on any profit less exps to Irish Revenue. You then deduct tax paid in Portugal.