When you sell a house, there are many doubts about the value of the capital gains and how much you have to pay the state. In simple terms, the state charges tax on half the profit made on the sale of a property.

In other words, if you bought a house for 200,000 euros and sold it for 250,000 euros, you made a capital gain of 50,000 euros. And you'll have to pay tax on 25,000 euros. This is the rule, but the math isn't so straightforward, because there may be exemptions or you may have made investments that will “write off” part of the capital gain.

For example, if, after selling your home, you reinvest the entire gain in the purchase of another property within a maximum of 36 months, the capital gain from this transaction will not be subject to tax. However, if you reinvest only part, the capital gain will be taxed in proportion to the amount reinvested.

But be aware that this exemption from paying capital gains applies, as a rule, to properties intended for own and permanent habitation. In other words, the house you sold and the house you bought (or will buy) must be your first home. If you want to simulate your case, use the capital gains calculator. Even if you have this help, understand how the calculations are made and what expenses you can include to reduce the amount of tax you have to pay.


How much capital gains will I pay?

The answer to this question, as already mentioned, is not simple, as it depends on various factors, such as the year in which you bought the house you sold or whether you reinvested the sale price in a new property.

Therefore, the calculation of the capital gain is a little more complex than the difference between the value at which you bought and then sold the property. To make this calculation, you must use the following formula:

Sale value - (acquisition value x currency devaluation coefficient) - purchase and sale costs - costs incurred in the appreciation of the property (in the last 12 years)

"Costs incurred in the appreciation of the property" are considered to be all the improvements made after the acquisition that have contributed to the appreciation of the property. Work carried out in the 12 years prior to the sale can be used for this purpose.

Purchase and sale costs" are, for example, taxes, an energy certificate or commissions paid to the real estate agent. These charges only relate to the property sold.

For example, imagine you sold a property you bought in 2007 for 200,000 euros. However, over the years, you have done some improvement work on the house, at a total cost of 5,000 euros. In 2020, he sold the same property for 250,000 euros.

To find out the value of the capital gain, in addition to subtracting the cost of the work (as long as you have the invoices to prove it), you can also deduct the amount of tax paid when you bought the house you sold.





Source: Dinheiro Vivo
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