Payment of Capital Gains
Newspaper Correio da Manhã Canada publishes article "Payment of Capital Gains" in the edition of 27/10/2020 by Vanessa Mendes, CEO of Be Wise Consultant.
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27 of October 2020.
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“(…) I received a letter from Finance saying that I had to pay IRS on the sale of the house that my mother left me and that “I failed” by not submitting the respective statement…”
MM, Québec.
We would like to begin by thanking you for the e-mail you sent us, the questions raised being very relevant, so we will, in the best way, clarify your doubts. Of the multiple issues presented, it is not possible to answer all of them in this space. In this context, it will always be important to turn to a tax advisor so that your doubts are properly framed.
As a follow-up to your question, it is important to address it in two distinct but related ways: 1st) the impact of the tax, in the sense of knowing whether the sale of a property, inherited through the death of your mother, will give rise to the payment of IRS; 2nd) the obligation to comply with the submission of the IRS declaration.
First, it is necessary to clarify that the income obtained, related to real estate, resulting from the sale of a property located in Portugal, even if earned by a non-resident in Portugal, through an inheritance whose sharing already occurred, are subject to the payment of IRS in Portugal. Therefore, a 28% rate is applied to the capital gains obtained. This, of course, if the death occurred after 1989, when the IRS came into force.
In a second step, it is necessary to answer the question of whether, due to the fact of obtaining this income in PT, it is mandatory to submit the IRS declaration. In this case, since he is not exempt from doing so, his surrender would be mandatory.
In conclusion, and in order to systematize, the real estate gains obtained by non-residents in PT, even though
from an inheritance when the sharing of assets has occurred, they are taxed at the rate of 28%, and the submission of the income declaration is mandatory.