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PostPosted: Sat Nov 02, 2019 4:11 pm 
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Joined: Sat Apr 12, 2008 11:41 am
Posts: 69
Location: Alcobaca
Having resided in Portugal for the last seven years, we have decided that we will return to England. We will have our house up for sale in the next few months, but have heard many different opinions on the selling a House in Portugal and purchasing another back in the UK and the Tax implications.
1. If you move to UK it doesn’t matter. No Tax.
2. If you spend as much as you receive for the house in Portugal on a house in the UK, that clears any Portuguese Tax implication.
3. If you purchase a house in UK that is in need of renovation for less than the sale price, you are able to use the difference to renovate the house, and that also comes off the Tax bill.

I do not want to pay Tax, but also do not want to be liable for Tax, in several years, because I have not followed the correct procedure.

I can see why many Portuguese do not downsize in their latter years, as the Tax seems to be high on Capital Gains in House sales.

May have to go to an Accountant, but any info most appreciated.

Many thanks, Roy

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PostPosted: Sun Nov 03, 2019 2:06 am 
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Joined: Thu Oct 22, 2009 1:50 pm
Posts: 1263
Location: Belfast/Luz
The first point is nonsense. Your second point would be closest to my understanding but your third might be valid too. However, I believe a key point is that the new property should be in the EU, so Brexit could prevent the reinvestment relief altogether.

You can purchase the replacement property before the original one is sold, though there is a time limit.

Portugal will always have the first claim to levy capital gains tax, whether you are resident or not but the tax rates and allowances in Portugal are different for residents and non-residents (who don't opt to be taxed as if resident). A non-resident may also liable for UK (in your case) CGT as well, though the Portuguese tax already paid will be allowed.


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PostPosted: Sun Nov 03, 2019 3:52 pm 
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Joined: Sat Apr 12, 2008 11:41 am
Posts: 69
Location: Alcobaca
Many thanks. Will have to see an Accountant, just to be on the safe side. No mistakes with that amount of money.

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PostPosted: Sun Nov 03, 2019 6:52 pm 
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Joined: Thu Oct 22, 2009 1:50 pm
Posts: 1263
Location: Belfast/Luz
There are a few Portuguese language pages that might help with your deliberations before you start the meter running with a professional.

https://www.doutorfinancas.pt/calculado ... s-imoveis/, for example.


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