Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.
The current Capital Gains Tax Regime defines a flat-rate assessment on the disposal of shares, bonds, derivatives, warrants, and other similar securities. In general, these gains are subject to a flat-rate tax of 28%. One significant exemption is the assessment of gains from the sale of shares of micro and small companies not listed on the stock exchange. Although the 28% formally applies, these companies benefit from a 50% exclusion. Most small businesses (“Limitada”) as well as Portuguese Nominee Companies (“Sociedade Civil”´) are eligible for this reduced assessment.
For many expatriates, owning a place in the sun is part of the dream retirement in Portugal. Whether it is a holiday home or somewhere permanent, it is important to look beyond the price tag and understand all the tax implications.
Pensions are often the key to long-term financial security, so it is crucial to take extreme care when deciding what to do here. Expatriates have the added complication of factoring in the tax rules of two countries, as well as the potential for Brexit to limit the opportunities available. 
