What are the best measures in the Mais Habitação package?

MORE HOUSINGO: SALE OF SECOND HOMES IS EXEMPT FROM CAPITAL GAINS IF YOU WRITE OFF CRÉTOLD

The sale of second homes or building plots during the years 2022, 2023 or 2024 may be exempt from capital gains if the money from the sale is used to repay a loan for permanent housing. DECO PROTeste explains how the Mais Habitação (More Housing) package works.

The sale of building plots or second homes during the years 2022, 2023 and 2024 will be exempt from paying capital gains, provided that the sellers use the amount obtained from the sale to repay the capital owed on their housing loan contracts in the following three months. The measure is provided for in the Mais Habitação (More Housing) package, which came into force on October 7, 2023.

In order to be exempt from capital gains, the amortization can be made on a credit agreement for the owner's own permanent home or on the own permanent home of their descendants (children or grandchildren).

Anyone who has already sold their secondary home by October 6, 2023 has three months to write it off and benefit from the extraordinary exemption.

Clarify all your doubts about the extraordinary exemption for capital gains.

WHICH SALES ARE EXEMPT FROM CAPITAL GAINS?

The exceptional exemption from capital gains applies to sales of building land or second homes made between January 1, 2022 and December 31, 2024.

HOW TO CALCULATE THE SURPLUSLIA?

The capital gain results from subtracting the sale price from the purchase price (or the tax value the property had when it was inherited). You should also deduct any amounts spent on real estate commissions, deeds, property transfer tax (IMT) or improvement work carried out in the last 12 years and duly supported by invoices.

É DO YOU HAVE TO WRITE OFF THE ENTIRE AMOUNT OF THE SALE OR JUST THE PROFIT MADE?

In order to benefit from the capital gains tax exemption, you must reinvest the entire amount obtained from the sale of the secondary home or building plot. If you don't reinvest the entire amount obtained from the sale, you can benefit from a partial exemption, applied only to the reinvested part. 

IF PART OF THE SALE PRICE HAS BEEN USED TO SETTLE THE LOAN.ÉTOLD À HOUSINGOF THE HOUSE SOLD, THAT AMOUNT É DISCOUNTED À VALUE ADD?

No. Even if the taxpayer uses part of the gain to pay off the loan that enabled them to buy the house, this amount is still counted as a gain and is part of the amount subject to tax.

HOW LONG DOES IT TAKE TO AMORTIZEÇÃAPFTER THE SALE OF THE HOUSESECONDÁRIA?

Repayment of the capital owed on a loan for own permanent housing must be made within three months of the sale. However, anyone who sold a secondary home or land for construction in 2022 or early 2023, before the Mais Habitação package came into force, has three months after the law comes into force to make the repayment that allows them to benefit from the measure.

In practice, anyone who sold a secondary home or land for construction between January 1, 2022 and October 7, 2023 can still benefit from the exceptional exemption from capital gains if they repay a credit for their own permanent home by January 7, 2024.

HOW TO PROVE DEPRECIATIONÇÃO?

Taxpayers who intend to benefit from the extraordinary capital gains exemption must ask their bank for a document proving the value and date of the amortization. This document may be required by the tax authorities once you have submitted your annual tax return reporting the sale of your secondary home or building plot.

WHO JÁ PAID CAPITAL GAINS ON THE SALE OFÇÃSECONDÁMADE IN 2022 CAN APPLY FOR A REFUND ÀFINANCESS?

Yes. Taxpayers can file an administrative claim and request that their tax return be replaced, mentioning the depreciation made on all or part of the capital gain. In this case, DECO PROTeste believes that the Tax Authority should subsequently settle the accounts, without any financial penalty for the taxpayer.

THEDOES THE EXCEPTIONAL EXEMPTION FROM CAPITAL GAINS APPLY TO PROPERTIESSOLD BY MORE THAN ONE OWNER?

Yes, each co-owner has their own share of the proceeds from the sale of the property or land. It is this share that you can write off against the outstanding principal of the loan for your own permanent home (or that of a descendant).

CAN THE MONEY FROM THE SALE OF A HOUSE BE USED TO BUY A HOUSE?SECONDARYÁTHE MONEY FROM THE SALE OF A SECOND HOME CAN BE USED TO REPAY A LOAN.ÉLOAN SHARED WITH NONÃO WAS AN OWNERÁOF THE HOUSE SOLD?

Yes, you can. But in these cases, you can only repay your share of the outstanding capital. If the loan was taken out by both members of a couple, for example, and only one of them has sold a secondary home, only that loan holder will be able to repay their half of the outstanding capital.

CAN THE MONEY FROM THE SALE OF A HOUSE BE USED TO BUY A HOUSE?SECONDARYÁTHE MONEY FROM THE SALE OF A SECOND HOME CAN BE USED TO REPAY THE CAPITAL OWED.ÍLIFE OF TWO CRÉHOUSING LOANSPRÓPERMANENT HOME FOR TWO CHILDREN?

Yes, as long as the gain from the sale of the secondary dwelling is used to amortize the taxpayer's own permanent housing loans or those of his descendants, within the legal time limits.

IF THE VALUE OBTAINED FROM THE SALE OF THE DWELLING ISTHE SECONDÁRIA EXCEEDS THE CAPITAL IN DÍCR LIFEÉFOR HOUSINGÇÃPRÓAND PERMANENT, HÁ COVANÇCAPITAL GAINS?

Yes, the part of the sale that is not used to repay the mortgage is subject to capital gains tax in the traditional way. In other words, half of the remaining value is added to the taxpayer's annual income and subject to tax calculation according to the corresponding IRS bracket.

THERE EXEMPTIONÇÃTHERE IS NO EXEMPTION FROM CAPITAL GAINS IF THE VALUE OBTAINED FROM THE SALE OF LAND FOR CONSTRUCTION ISÇÃOR HOUSINGÇÃSECONDARYÁIS REINVESTED IN THE PURCHASE OF HOUSINGÇÃPRÓAND PERMANENT HOUSING?

No. The exemption from capital gains already provided for before the Mais Habitação package came into force for the purchase or construction of homes only applies to reinvestments of amounts obtained from the sale of own permanent homes. In these cases, the reinvestment must also be made in the construction or purchase of a new permanent home for the taxpayer's household.

THE SALE OF LAND RÚSTICS ALSOÉIS COVERED BY THE EXEMPTIONICEXTRAORDINARYÁOF CAPITAL GAINS?

No. The measure only applies to the sale of building land or residential property that is not intended for the taxpayer's own permanent home.

©Proteste.pt