First and foremost, we highlight the tax benefit granted to individuals, subject to personal income tax (PIT), for realised capital gains derived from financial products held over a medium-long term. According to the newly approved framework, realised capital gains derived from the sale of securities traded in stock exchanges or of participations in a Collective Investment Undertakings (CIU) are now partially excluded from PIT tax. This tax relief has different levels depending on the financial products\u2019 holding period:<\/p>\n
– For a holding period lower than 2 years, there is no tax relief, hence being applied the autonomous tax rate of 28%;<\/p>\n
– For a holding period between 2 and 5 years, 10% of the taxable income may be excluded from taxation, resulting in an effective tax rate of 25.20%;<\/p>\n
– For a holding period between 5 and 8 years, 20% of the taxable income may be excluded from taxation, resulting in an effective tax rate of 22.40%;<\/p>\n
– For a holding period longer than 8 years, 30% of the taxable income may be excluded from taxation, resulting in an effective tax rate of 19.60%.<\/p>\n
The realised capital gains by PIT taxpayers may derive from securities listed on the Portuguese stock exchange or another international exchange, as the legislation does not exclude this possibility.<\/p>\n
On the other hand, the special tax regime for Pan-European Personal Pension Products (PEPP) has also been approved, aimed at boosting savings. In broad terms, the tax benefits granted to this financial product are as follows:<\/p>\n
– Exemption of PIT in capital gains derived from the sale of the main residence, provided that the proceeds are applied in a PEPP subscription;<\/p>\n
– Exemption of Stamp Duty over the amounts invested in a PEPP;<\/p>\n
– Granting of a PIT tax credit, up to 20%, on amounts invested in a PEPP, with a capped deduction of \u20ac400, depending on the investor’s age, under the same terms applicable to Portuguese retirement savings products (PPR).<\/p>\n
For further information, please contact the Tax Law Department of Ana Bruno & Associados, Sociedade de Advogados.[\/vc_column_text][divider line_type=”No Line” custom_height=”0px” custom_height_tablet=”40px” custom_height_phone=”40px”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” el_class=”no-print-pdf” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/12″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” sticky_content=”true” sticky_content_functionality=”js” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” el_class=”coluna-direita” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”.vc_custom_1759146021753{margin-bottom: 0px !important;}” text_direction=”default”]Author of the News[\/vc_column_text][divider line_type=”No Line” custom_height=”10px”][vc_row_inner column_margin=”20px” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” el_class=”seta_area_equipa” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default” offset=”vc_col-xs-6″][image_with_animation image_url=”1483″ image_size=”full” max_width=”100%” max_width_mobile=”default” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” img_link=”\/en\/team\/sonia-reis\/” el_class=”autor-imagem”][divider line_type=”No Line” custom_height=”10px”][vc_column_text css=”” text_direction=”default”]\n