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Selling Shares, Funds and Other Financial Assets in Portugal: How to Calculate the Capital Gain
🧮 The Formula
Gain = Sale value – Acquisition value – Expenses
- Sale value: the price received (net of nothing — expenses are deducted separately)
- Acquisition value: the price paid (or, for inherited or gifted assets, the value for Stamp Duty)
- Expenses: necessary costs of buying and selling, such as brokerage commissions and transaction fees
The gain is calculated per sale, and the year’s gains and losses are netted.
🔢 FIFO: Which Shares Did You Sell?
If you bought the same security at different times and prices, the law assumes you sell the oldest first (FIFO — first in, first out). This determines both the acquisition value and the holding period.
💶 The Rate: 28% or Aggregation
- Special rate of 28% on the net positive balance of the year
- Option to aggregate with other income at progressive rates (useful for lower incomes)
- Mandatory aggregation: if the gains come from assets held less than 365 days and your taxable income (including those gains) reaches the top IRS bracket, they must be aggregated
- Tax havens: gains on units of funds domiciled in tax havens are taxed at 35%
Micro and small companies: for unlisted shares or quotas in micro and small companies, only 50% of the gain is taxed (see our separate article).
₿ Crypto-Assets
- Held 365 days or more: generally excluded from tax
- Held less than 365 days: taxed at 28% (or aggregated)
🏦 Redemptions vs Sales
- Selling fund units or ETFs on the market → category G
- Redeeming units of investment funds directly with the fund → generally category E (capital income)
- Bonds held to maturity: the interest is category E; the gain on a sale before maturity is category G
➖ Losses (Article 55)
- Losses are netted against gains of the same year in category G
- A negative balance can be carried forward for five years — but only if you aggregate your category G income in the year of the loss and in the year you use it
- Losses on sales to entities in tax havens aren’t deductible
🌍 Foreign Brokers
Using a foreign broker (such as Interactive Brokers, Degiro or Trading 212)? There’s no Portuguese withholding — you must calculate and declare the gains yourself, in Annex J, converting values to euros at the exchange rate of each date.
📋 How to Declare
- Portuguese brokers: Annex G
- Foreign brokers: Annex J (section on capital gains)
- Report each sale with dates, values and expenses
💡 Practical Tips
- Download the annual tax reports from your broker.
- Track your holding periods — the 365-day rule matters.
- Harvest losses in years with gains, and consider aggregation if you need to carry forward losses.
- IFICI or NHR: foreign-source gains may be exempt — but gains on securities are often Portuguese-source if issued by Portuguese companies.
🚀 Final Considerations
Gains on financial assets are taxed at 28% in most cases, with no 50% exclusion. Calculating them correctly — with FIFO, expenses and exchange rates — and using your losses wisely can make a big difference.
📢 Expert Advice: If you trade through a foreign broker, keep a detailed record of every transaction in euros. It’s the only way to declare correctly and defend your figures.
Investing from Portugal? Step Inside Portugal’s tax team can calculate your gains and prepare Annex J — find out more about our tax services here. ✨
This article is for general information only and doesn’t constitute tax or investment advice. It reflects the rules as of October 2026.
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