Tax obligations of non-residents in Portugal

Generally, non-residents are not required to submit Portuguese tax returns. Non residents who own property situated in Portugal, are liable for property rates.

Capital Gains Tax

On the sale of property, should the sale proceeds generate capital gains, these would be subject to capital gains tax.
Should substantial capital gains be expected, with preplanning, it maybe worthwhile instituting a plan to substantially reduce this liability.

Rental Properties

Properties which are rented out on a long term basis as well as short term basis are subject to income tax and reporting obligations.

There are also some planning opportunities in respect of short term lets (a simplified regime may be applicable). Long terms lets may make use of certain deductions in order to reduce their local tax liabilities.