Law n.º 31/2024, reduced long-term taxes
Reduced taxation for long-term investments, with a reduction of up to 30% of taxation.
Law No. 31/2024 of June 28 introduced significant changes to investment taxation in Portugal, aiming to encourage long-term financial asset retention.
Key changes:
- - Assets held between 2 and 5 years: 10% reduction in the tax rate.
- - Assets held between 5 and 8 years: 20% reduction.
- - Assets held for more than 8 years: 30% reduction.
Source: Lei n.º 31/2024, de 28 de junho
Considering the standard capital gains tax rate is 28%, the maximum reduction results in an effective rate of 19.6% for assets held for more than eight years.
Benefits for investors:
Holding investments for longer periods allows investors to benefit from lower tax burdens, increasing net returns and promoting market stability.
Application of the new regime:
The reductions automatically apply to capital gains realized after the respective asset retention periods. These measures aim to foster long-term savings and investment in the Portuguese capital market.
Open Positions Report
Tax-Wizard provides a detailed open positions report that simplifies the analysis of ongoing investments. It allows investors to:
- - Identify holding periods to take advantage of tax reductions.
- - Analyze unrealized gains and losses with visual highlights.
- - Assess the impact of exchange rate fluctuations.
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- Report with Acquisitions, Realizations, Dividends, and Interest
- Open positions report and statistics
- Transaction and dividends statistics
- Export Open Positions to Yahoo Finance