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Informative Note on the General Regime for the Protection of Whistleblowers (Law 93/2021)
HAAG has prepared an information note on the exclusion of taxation over capital gains in the case of the sale of usufruct rights over real estate intended for own and permanent habitation.
The Personal Income Tax Code stipulates that gains obtained from the onerous sale of real rights over immovable property are considered capital gains and are taxed as such. However, these gains, when derived from the transfer for consideration of real estate intended for the taxpayer's own permanent residence, can be excluded from taxation if they fulfil the other cumulative requirements, namely that the realisation value is reinvested in the acquisition of ownership of another property and that it is intended for the taxpayer's own permanent residence. Since it is clear that the regime applies in the case of allotment or acquisition of the right to ownership of a property, it is important, under this regime, to question how the taxation of gains is carried out in the case of the sale of the right of usufruct over property intended for the taxpayer's own permanent residence.
Author: Sofia Cunha
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