Law n.º 31/2024, reduced long-term taxes

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.