Under the “Mais habitação” (More Housing) program, adjustments will be introduced to the exemption of real estate capital gains derived from the sale of Permanent Owned Housing (“HPP”), provided the gains are reinvested into another HPP.
The following criteria will be appended to the existing prerequisites, ensuring eligibility for the aforementioned tax exemption:
- The property being sold must have served as the Primary Permanent Housing (PPH) for the taxpayer or their family for a minimum of 24 months prior to the transfer date.
- The taxpayer should not have previously availed themselves of the real estate capital gains tax exemption arrangement in the same year as the gains were realized, nor within the three years preceding, unless the taxpayer can demonstrate that non-compliance with this condition stemmed from exceptional circumstances.
Despite the recent President’s veto, the Government, in which the PS party holds a majority, has already communicated that, while respecting Marcelo Rebelo de Sousa’s opinion, it will reaffirm the legislation without any changes.
Sofia Quental | Flávia Almeida | Catarina Amaral
