Newsletter

18 June 2025

Alienation of a hereditary share in a property - does it constitute a capital gain and is it subject to personal income tax (irs)?

On 29th April 2025, the Supreme Administrative Court (SAC) issued a binding precedent regarding the interpretation and application of Article 10(1)(a) of the Personal Income Tax Code (PIT Code).

This ruling now clarifies that the sale of a hereditary share relating to a fractional interest in a real estate asset does not fall within the scope of the legal provision and, consequently, is not subject to taxation under PIT rules. It thus separates such cases from those covered by Article 10(1)(a) of the PIT Code.

Inês de Azeredo Silva

 Photo from Pixabay

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