How Much Will I Keep After Selling Property in Portugal? Net Proceeds Calculator

­​​​​​When selling a property in Portugal, the figure that matters most is not necessarily the advertised price or even the price accepted from the buyer. It is the amount that will remain available after repaying the mortgage, paying the estate agency commission, resolving legal and administrative expenses and reserving enough money for any capital gains tax due.

These deductions can substantially reduce the cash available to the seller. However, it is important to distinguish between three very different amounts:

1. The property’s sale price.
2. The cash received when the deed is completed.
3. The final proceeds remaining after future taxes and other post-sale costs.

An outstanding mortgage may create a large difference between the sale price and the amount transferred to the seller, but the repayment of borrowed capital is not technically a selling cost. It is the settlement of an existing debt.

At RE/MAX Cidadela, we have supported property owners in Cascais, Lisbon, Oeiras and Sintra since 2004, including non-resident sellers, inherited-property owners and transactions involving mortgages, powers of attorney and cross-border transfers. This guide explains how to estimate the amount you may keep, but the final tax calculation should always be confirmed by a qualified accountant or tax adviser.

Quick Summary

• The amount received at completion is different from the final amount retained after capital gains tax.
• An outstanding mortgage reduces the cash released by the sale but should not be confused with a transaction cost.
• Estate agency commission is subject to VAT, which is currently 23% in mainland Portugal.
• For most individual sellers, including non-residents, only 50% of the net property gain is included in taxable income, but progressive IRS rates apply.
• A non-resident’s worldwide income is considered when determining the Portuguese tax rate applicable to the taxable property gain.
• Documented acquisition costs, qualifying improvement expenses and necessary sale costs may reduce the taxable gain.
• Sellers should request a formal mortgage settlement statement before accepting an offer.
• A precise net-proceeds calculation requires information about the property, mortgage, ownership, tax residence, income and reinvestment intentions.

The Two Net Proceeds Formulas You Need

Many online calculators use only one formula. In practice, sellers need two.

Cash Received at Completion

Cash at Completion = Sale Price − Mortgage Settlement − Mortgage Repayment Costs − Estate Agency Commission and VAT − Legal and Administrative Costs Paid at or Before Completion

This is the approximate amount released when the deed is completed.

Final Estimated Proceeds After Tax

Estimated After-Tax Proceeds = Cash at Completion − Estimated Capital Gains Tax − Post-Sale Banking or Currency Costs

Capital gains tax is generally not deducted directly from the sale price at the deed. The transaction must be declared in the seller’s annual Portuguese IRS return, and the tax assessment normally occurs later.

This is why a seller may receive a relatively large amount at completion but should not assume that all of it is available to spend.

Information Needed to Calculate Your Net Proceeds

Before calculating the result, collect the following information:

Without this information, any figure described as “your final net proceeds” is only a rough estimate.

1. Outstanding Mortgage Balance

If the property has a mortgage, the outstanding loan is normally settled from the sale proceeds when the deed is completed.

For example, if a property is sold for €600,000 and the outstanding mortgage is €220,000, the €220,000 is used to repay the bank before the remaining equity is released to the seller.

The seller should ask the bank for a formal settlement statement showing:

• Outstanding capital.
• Interest due up to the expected completion date.
• Early repayment commission, when applicable.
• Administrative or registration expenses.
• The procedure for issuing the mortgage discharge document, commonly called the distrate.

For a total early repayment, the bank must generally be notified at least ten working days in advance. The institution then has 14 working days to issue the declaration confirming that the debt has been extinguished.

In 2026, the maximum early repayment commission is generally:

These are maximum limits. The mortgage contract may establish a lower commission or an exemption. Interest due up to the repayment date and certain documented third-party expenses may also apply.

A seller should never estimate the outstanding debt using only the balance shown on the latest monthly bank statement. The amount required to cancel the mortgage on the completion date may be different.

2. Estate Agency Commission and VAT

Estate agency commission in Portugal is established in the written mediation agreement between the owner and the real estate agency. There is no single legally imposed percentage for every transaction.

Many agreements use a commission of approximately 5% of the sale price, although the percentage may vary according to the property, service, location, listing conditions and agreed commercial terms.

VAT must be added to the commission. In mainland Portugal, the standard VAT rate is 23%.

For a €450,000 sale with a 5% commission:

• Commission before VAT: €22,500.
• VAT at 23%: €5,175.
• Total commission: €27,675.

The seller should therefore calculate the commission as 5% plus VAT, rather than treating 5% as the final expense.

When properly invoiced and directly connected with the sale, estate agency commission may generally be considered among the necessary disposal expenses used to calculate the taxable capital gain. The specific deductibility should be confirmed for each transaction.

3. Capital Gains Tax in Portugal

Capital gains tax is often the most difficult part of the calculation because the tax is not simply a fixed percentage of the difference between the sale price and the original purchase price.

The starting formula is generally:

Net Capital Gain = Sale Value − Inflation-Adjusted Acquisition Value − Eligible Acquisition Costs − Eligible Improvement Expenses − Eligible Sale Expenses

Portuguese tax law generally allows the acquisition value to be increased by documented property-improvement expenses incurred during the previous 12 years, together with necessary and effectively incurred expenses connected with the acquisition and sale.

Potentially relevant expenses may include:

• IMT paid when the property was acquired.
• Stamp duty paid on the acquisition.
• Notary and registration costs associated with the purchase.
• Qualifying construction, renovation or improvement expenses.
• Estate agency commission connected with the sale.
• Certain legal, certification and administrative expenses directly required for the transaction.

Invoices and proof of payment are essential. An undocumented renovation is unlikely to provide the same tax benefit as an expense supported by a valid invoice identifying the owner and the property.

The original acquisition value may also be adjusted using the official monetary correction coefficient applicable to the year of acquisition.

For a detailed explanation of taxable gains, deductible expenses, exemptions and reinvestment rules, read our complete guide to Capital Gains Tax in Portugal in 2026.

How Residents and Non-Residents Are Taxed

The old statement that every non-resident simply pays 28% on the full property gain is no longer generally correct.

For most individual property sales, only 50% of the net gain is considered for Portuguese IRS purposes.

For non-residents, worldwide income is considered to determine the progressive rate applicable to the Portuguese taxable income. This does not necessarily mean that Portugal taxes all foreign income; it means that worldwide income may influence the rate applied to the Portuguese property gain.

Consequently, two non-residents selling comparable properties with the same calculated gain may receive different Portuguese tax assessments because their worldwide income and personal circumstances are different.

4. Can Reinvestment Reduce Capital Gains Tax?

A full or partial exclusion may be available when a qualifying principal private residence is sold and the relevant proceeds are reinvested in another principal private residence.

Under the general rules, the reinvestment may be made between 24 months before and 36 months after the sale. The seller must declare the intention to reinvest in the Portuguese tax return for the year of disposal. The property sold must also satisfy the legal conditions for classification as the seller’s principal private residence.

Partial reinvestment normally produces only a proportional exclusion.

New 2026–2029 Reinvestment Relief for Rental Housing

A temporary regime introduced in 2026 may also allow a full or partial exclusion when proceeds from the sale of a qualifying residential property are reinvested in another Portuguese property intended for residential letting.

The regime applies to qualifying transfers carried out between 1 January 2026 and 31 December 2029.

Among other conditions, the new property must generally:

• Be situated in Portugal.
• Be placed under a residential tenancy agreement within the applicable deadline.
• Be rented for at least 36 months during the first five years.
• Respect the legally established maximum rent.
• Not be sold during the initial five-year period.

The reinvestment must generally occur between 24 months before and 36 months after the sale. The intention to reinvest must be declared, and a partial reinvestment produces a proportional exclusion.

This is a potentially valuable regime, but it contains strict conditions. Sellers should obtain individual tax advice before relying on it.

5. Legal and Administrative Costs

Not every seller will incur the same expenses. A straightforward mortgage-free sale by an owner living in Portugal may involve relatively limited administrative costs. A remote sale involving foreign documents, a mortgage, several owners or a power of attorney may cost considerably more.

Possible seller expenses include:

An energy performance certificate is mandatory for a property transaction unless a specific legal exemption applies. It must be issued by a qualified energy expert.

The buyer normally bears the principal purchase-deed and acquisition-registration costs. However, the seller remains responsible for expenses needed to make the property legally and administratively ready for sale.

A reasonable preliminary reserve for legal and administrative expenses may range from several hundred euros to a few thousand euros, but properties with legal inconsistencies can cost considerably more to regularise.

6. IMI and Other Outstanding Property Amounts

IMI is Portugal’s annual municipal property tax.

For tax purposes, IMI is generally due from the person registered as the property’s owner, usufructuary or surface-right holder on 31 December of the relevant year.

IMI is therefore not automatically prorated by the Portuguese Tax Authority on the date of sale.

The buyer and seller may agree contractually to make an adjustment reflecting the portion of the year during which each party owned the property, but this is a private adjustment. It does not change the person legally responsible to the tax authority.

The seller should also verify:

• Whether previous IMI instalments have been paid.
• Whether AIMI applies.
• Whether condominium fees are outstanding.
• Whether special condominium contributions have been approved.
• Whether municipal charges or licensing costs remain unpaid.

These amounts may not all be deducted directly at the deed, but unresolved debts can delay the transaction or lead to negotiation with the buyer.

Worked Example: Non-Resident Selling a €450,000 Apartment in Cascais

Consider a non-resident owner selling an apartment in Cascais for €450,000.

The property has a variable-rate mortgage with €180,000 outstanding. The mediation agreement establishes a 5% commission plus VAT, and the seller expects €1,500 in legal and administrative expenses.

Cash at Completion

The seller does not lose €210,075 entirely through selling expenses. Of that amount, €180,000 represents the repayment of previously borrowed mortgage capital.

The direct transaction costs in this example are approximately €30,075, before considering capital gains tax.

Estimated Proceeds After Tax

Assume the seller’s accountant reviews:

• Purchase value and acquisition date.
• Inflation adjustment.
• IMT and stamp duty paid at acquisition.
• Documented improvement works.
• Estate agency commission.
• Ownership percentage.
• Portuguese and worldwide income.
• Possible reinvestment relief.

After reviewing these elements, the accountant estimates that the seller should reserve between €18,000 and €28,000 for Portuguese capital gains tax.

The tax range is illustrative. It is not calculated by applying a flat 28% rate and cannot be confirmed without the seller’s complete tax information.

Three Factors That Can Change the Result by Thousands

The Mortgage Is Not the Same as a Selling Cost

A heavily mortgaged seller may receive much less cash than a mortgage-free seller, even when both properties sell for the same price. This does not mean the first property generated higher transaction costs. It means less owner equity had accumulated before the sale.

Missing Invoices Can Increase the Taxable Gain

A seller may have spent €50,000 renovating a property but be unable to use all of that amount in the capital gains calculation if there are no valid invoices or if the works do not qualify under the applicable rules.

The documentation should be reviewed before the property is placed on the market, not months after completion.

Currency Conversion Can Alter the Final Result

A seller receiving €300,000 and transferring the money into pounds, dollars, Swiss francs or another currency may lose or gain thousands of euros depending on:

• Exchange-rate movements.
• Bank margins.
• Transfer charges.
• The payment method.
• The date on which the conversion is made.

The foreign-currency result should be calculated separately from the Portuguese property transaction.

Common Mistakes When Estimating Net Proceeds

The most common error is applying an outdated 28% flat rate to every non-resident seller. Since 2023, non-resident individual property gains are generally assessed under mandatory aggregation and progressive-rate rules.

Another common mistake is forgetting VAT on the estate agency commission. A 5% commission becomes an effective 6.15% of the sale price once 23% VAT is included.

Sellers also frequently confuse mortgage repayment with a tax or transaction expense. The mortgage reduces the cash received, but it represents the repayment of an existing loan.

Other costly errors include failing to request the bank’s settlement statement early, losing renovation invoices, assuming all works are tax-deductible, overlooking ownership percentages and spending the entire completion balance without reserving funds for the subsequent IRS assessment.

Broker’s Verdict: Calculate Before Accepting an Offer

The best time to calculate the seller’s proceeds is not after the CPCV has been signed or after the completion date has been scheduled.

The calculation should be completed before the property is placed on the market and updated whenever the expected sale price changes.

This allows the owner to answer three important questions:

1. What is the lowest offer I can realistically accept?
2. How much money will be available at completion?
3. How much should be reserved for future tax?

For an owner planning to buy another property, repay other debts, divide an inheritance or transfer funds abroad, the net result may be more important than the sale price itself.

Frequently Asked Questions

Do non-residents pay a flat 28% capital gains tax in Portugal?

Not generally. For individual property disposals from 1 January 2023 onwards, non-residents are generally subject to mandatory aggregation, with 50% of the net gain considered and progressive IRS rates applied. Worldwide income is taken into account to determine the applicable rate.

Is the entire sale profit taxed?

Generally, only 50% of the calculated net property gain is included in taxable income for an individual seller. Exceptions and special regimes may apply, so the result should be checked individually.

Can I deduct renovation expenses?

Qualifying property-improvement expenses from the previous 12 years may be considered if they are properly documented and comply with the tax rules. Normal maintenance, furniture and undocumented payments should not automatically be assumed to qualify.

Can I deduct the estate agency commission?

A properly invoiced commission that is necessary and directly connected with the sale may generally be considered when calculating the taxable gain. Keep the mediation agreement, invoice and proof of payment.

How much does it cost to repay a mortgage early?

The maximum commission is generally 0.5% of the amount repaid for a variable-rate mortgage and 2% for a fixed-rate mortgage. The contract may establish a lower fee or an exemption.

Is capital gains tax deducted at completion?

Normally, no. The seller generally declares the transaction in the Portuguese IRS return, and the tax is assessed later. A suitable amount should therefore be reserved from the sale proceeds.

Who pays the IMI in the year of sale?

The Portuguese Tax Authority generally charges IMI to the person registered as owner, usufructuary or surface-right holder on 31 December. The parties may negotiate a private proportional adjustment, but it is not automatic.

Can reinvestment eliminate the tax?

A full or partial exclusion may be possible for qualifying reinvestment in another principal private residence. A temporary 2026–2029 regime may also apply to qualifying reinvestment in Portuguese residential rental property. Both regimes contain strict conditions and deadlines.

Estimate Your Net Proceeds Before Selling

Every property sale is different. The final result depends on the outstanding mortgage, estate agency agreement, acquisition history, documented expenses, ownership structure, tax residence, worldwide income and reinvestment plans.

RE/MAX Cidadela can prepare an initial property valuation and transaction-cost estimate for owners selling in Cascais, Lisbon, Oeiras or Sintra. Where a formal tax assessment is required, the calculation should be confirmed by a qualified accountant or tax adviser before financial decisions are made.

Understanding the likely net proceeds before accepting an offer helps you negotiate with greater confidence, avoid unexpected costs and plan what happens after the sale.

Find Out What You Could Keep After Selling

The sale price is only the starting point. Your actual proceeds will depend on your property’s market value, outstanding mortgage, selling costs, ownership history and tax situation.

Request a free, no-obligation property valuation from RE/MAX Cidadela. We will estimate the current market value of your property in Cascais, Lisbon, Oeiras or Sintra and help you understand the likely costs and cash available after the sale.

Request Your Free Property Valuation

Not ready to sell yet? Download our Guide to Selling Property in Portugal and learn how to prepare the documents, costs and sale strategy in advance.

RE/MAX CIDADELA

Avenida 25 de Abril nº 722, Cascais.

Tel.+351 967604141. E-Mail: ppettermann@remax.pt

⭐️⭐️⭐️⭐️⭐️ 4.6 stars on Google Reviews | 180+ verified client reviews

 Local Specialists in:

• Cascais & Estoril: Residential market, premium properties, and investment opportunities
• Lisbon: Apartments, renovation projects, and historic neighborhoods
• Oeiras & Sintra: Family homes and luxury residential market

----------------------------------

👤About the Author

By Pedro Pettermann
Pedro Pettermann is a Broker at RE/MAX Cidadela in Cascais, with over 20 years of experience in the real estate market across the Cascais coastline, Lisbon, Oeiras, and Sintra. With an MBA from IE Business School, he combines strategic vision with deep local expertise. Recognized as a specialist in the real estate market, mortgage financing, and digital marketing, he helps owners and buyers make confident and profitable decisions.

Pedro Pettermann | LinkedIn

At RE/MAX Cidadela, we have already helped more than 4,800 families successfully sell or buy the home of their dreams