The capital gain is the figure already computed in the property capital gains calculator: bring that result here.
The mortgage repaid is the outstanding capital settled at the sale. The field for reinvestment in another home is for people combining this regime with buying a new one.
To exclude the whole gain you would have to apply a further €70,000.00 into an eligible product, within the 6 months following the sale.
| Amount to apply (sale − mortgage − reinvested in another home) | €220,000.00 |
| Application counted | €150,000.00 |
| Proportion applied | 68.2% |
| Gain excluded | €61,363.64 |
| Gain still taxable | €28,636.36 |
| Taxable part (50% of the remaining gain) | €14,318.18 |
| IRS under the regime (35%) | €5,011.36 |
| IRS without the regime | €15,750.00 |
| IRS saved | €10,738.64 |
Subparagraph (d) of paragraph 10 requires a regular payment for at least 10 years, subject to this annual ceiling. Over the minimum period that returns €112,500.00 to you, which is 75% of what you applied: at the maximum annuity the capital only comes back in full after 13.3 years. Drawing above the ceiling in any year, or interrupting the payments, withdraws the benefit.
The product must be acquired within the 6 months following the sale, and there is no look-back window: unlike people buying another home, nothing applied before the sale counts. The intention is declared in the tax return for the year of the sale.
On the date of the transfer, the taxpayer, their spouse or their de facto partner must be verifiably retired or at least 65 years old. Retiring after the sale is too late. The home sold must have been your permanent home.
The two regimes add up: subparagraph (a) of paragraph 10 deducts from the amount to apply both the mortgage repayment and any reinvestment already made in a new permanent home.
Decreto-Lei n.º 97/2026, de 20 de maio renumbered article 10.º of the Portuguese IRS Code: this regime used to be paragraph 7 and is now paragraph 10, and the rule that withdraws the benefit used to be paragraph 8 and is now paragraph 11.
The calculator applies the proportional exclusion rule for mainland residents and starts from the gain already computed. It does not verify the eligibility conditions, does not handle reinvestment in a new permanent home (which has its own calculator) and does not cover the new affordable-rental regime of paragraphs 7 to 9.
Educational estimate, not financial advice. The marginal IRS rate depends on your total income (mandatory aggregation); always confirm the final figures and the treatment of the product with the Portuguese tax authority or a certified accountant.