Offshore funds capital gains tax exempt on State house sales

Off-shore funds will be exempt from paying capital gains if they sell residential properties to the State to ease Portugal’s chronic housing shortage.

The measure is part of the Government’s ‘More Housing’ policy which was unveiled this month but has been severely criticised by property, estate agency, landlord and self-catering guest house associations as an assault on the free market and private property.
According to the newspaper Público, many of these funds broke into the Portuguese property market during the last economic crisis (2011-2014), snapping up properties at bargain basement prices, later contributing to property price speculation.
In the ‘Mais Housing’ (More Housing) package, which is still under public consultation, the Government is proposing a capital gains exemption regime if a property is sold to the State or municipal councils.