The capital gain is the profit on the sale after adjusting the purchase value for inflation and deducting costs and works. Compute it first in the property capital gains calculator and bring the result here.
Only your own money applied in the new main home counts: the price of the new home minus any new mortgage. The loan repaid is the outstanding mortgage on the home you sold, paid off at the sale.
To exclude the whole gain you would need to reinvest a further €50,000.00 within the legal window.
| Amount to reinvest (sale − loan repaid) | €150,000.00 |
| Reinvestment considered | €100,000.00 |
| Share reinvested | 66.7% |
| Gain excluded | €40,000.00 |
| Gain still taxable | €20,000.00 |
| Taxable portion (50% of the remaining gain) | €10,000.00 |
| IRS with reinvestment (35%) | €3,500.00 |
| IRS without reinvestment | €10,500.00 |
| IRS saving | €7,000.00 |
Only money applied without new credit counts as reinvestment: the part of the new home paid with a new mortgage does not enter the calculation.
The reinvestment must happen between 24 months before and 36 months after the sale, and the intention must be declared in Anexo G of that year's IRS return.
The home you sold must have been your main permanent residence for the 12 months before the sale, and the new home must become it within the legal deadlines, in Portugal, the EU or the European Economic Area.
The calculator applies the proportional exclusion rule for residents in mainland Portugal. It does not compute the regime for people aged 65+ or retired (reinvestment into a life insurance contract, pension fund or PPR within 6 months), which the article explains.
Educational estimate, not financial advice. The marginal IRS rate depends on your total income (mandatory aggregation); always confirm final figures with the tax authority or a certified accountant.
Capital Gains Reinvestment Calculator by Calculadora Capital