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JGM, Solicitor
Category: Law
Satisfied Customers: 12088
Experience:  30 years as a practising solicitor.
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I am a UK resident but own a property in Portugal and am considering

Customer Question

I am a UK resident but own a property in Portugal and am considering taking on a second. If I sell my sell my sole property in Portugal what % of capital gains tax am I liable for and if I was then to sell the second the % liable on that. I'm aware that if I reinvest the tax liability is different . So I could sell one and reinvest if necessary if that's the most tax effective resolve.
Many thanks
Submitted: 3 years ago.
Category: Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
You'll pay CGT at 28% on a disposal of either property. Obviously you have the annual personal allowance so you shouldn't sell both in the one tax year and if you can, put then into joint names before a sale so as to get the benefit of two personal allowances.
Importantly note that contrary to popular belief there are no tax reliefs for reinvesting in residential property so there is no advantage to you in doing so.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.
In Portugal what is the annual personal allowance? Re capital gains when selling one property in one year
Many thanks
Expert:  JGM replied 3 years ago.
That question is outwith my area of expertise, I'm afraid, and is an issue of Portuguese law.