Selling a Home in 2026? Portugal's New Inflation Coefficients Lift a 2010 Purchase Price by 31 Percent Before Tax
A new ordinance sets the coefficients that raise a property's purchase price before capital gains tax is worked out on 2026 sales. A home bought in 2010 now carries 1.31, up from 1.28. Here is how the correction and the 50 percent rule work.
Anyone who sells a home or other property in Portugal during 2026 at a profit now knows how much of that profit the tax office will treat as inflation rather than gain. The government published the annual table of coeficientes de desvalorização da moeda (currency devaluation coefficients) in the Diário da República (the official gazette) on 15 October, in Portaria n.º 457/2026/1, signed on 9 October by the Secretary of State for Tax Affairs.
The coefficients apply to property and other assets sold during 2026. They are used to raise the original purchase price before the taxable gain is worked out, under Article 47 of the Código do IRC (Corporate Income Tax Code) for companies and Article 50 of the Código do IRS (Personal Income Tax Code) for individuals.
How the correction works
Under Article 50 of the IRS code, as published by the Autoridade Tributária (Tax and Customs Authority), the purchase value of property, and of company shares in certain cases, is multiplied by the coefficient for the year it was bought. The correction only applies when more than 24 months have passed between the date of purchase and the date of sale.
The new table runs from purchases made up to 1903 to purchases made in 2025. Some of the values for recent decades:
- Bought in 2000: 1.71 (1.67 in last year's table)
- Bought in 2010: 1.31 (1.28 last year)
- Bought in 2018 to 2020: 1.20 (1.17 last year)
- Bought in 2022: 1.08 (1.06 last year)
- Bought in 2024: 1.02 (1.00 last year)
- Bought in 2025: 1.00
Last year's figures come from Portaria n.º 382/2025/1, which covered sales made in 2025.
A worked example
Our own illustration, which ignores purchase and sale costs and any other adjustments: a flat bought in 2010 for €150,000 and sold in 2026 for €300,000. Multiplying the purchase price by 1.31 gives a corrected value of €196,500, so the gain falls from €150,000 to €103,500.
For individuals, Article 43 of the IRS code then counts only 50 percent of the net property gain, so €51,750 would be added to the seller's taxable income for the year. Under last year's coefficient of 1.28, the same sale would have produced €54,000. The 50 percent rule does not apply, and the gain counts in full, where the home received non-repayable public support worth more than 30 percent of its taxable property value and is sold within 10 years.
Selling your own home
Gains on the sale of a permanent home can be excluded from tax altogether under Article 10(5) of the IRS code if the proceeds, less any outstanding mortgage on the property, are reinvested in another permanent home in Portugal or elsewhere in the EU or European Economic Area. The reinvestment must happen between 24 months before and 36 months after the sale, the seller must state the intention to reinvest in the income tax return for the year of sale, and the home sold must have been the seller's tax address in the 12 months before. A separate, newer break for reinvesting the proceeds in a home to rent out has its own conditions; we reported on the tax office's ruling on it in September.
Sellers declare a 2026 sale in the income tax return covering 2026, which is filed next year, and should use the coefficient from this new table rather than one from an earlier year.
