13 October 2020 – Property owners who take their homes off of the short-term tourist rental market or other business activities are no longer subject to capital gains tax, according to the proposed State Budget for 2021 (OE2021).
When a property owner removes the asset from commercial use, they must add the costs they have previously deducted from the activity to their taxable income – in four annual instalments. Currently, a landlord wishing to remove their property from the short-term rental market must pay capital gains, as if the asset had been sold.
Original Story: Economia Online – Lusa / Rita Neto
Translation/Summary: Richard D. Turner