Selling a Portuguese Property With Active AL 2026: RNAL Transfer Rules and Tax

Selling a Portuguese Property With Active AL 2026: RNAL Transfer Rules and Tax

Selling a property with an active AL licence in Portugal involves specific legal obligations under Decreto-Lei 76/2024, a 60-day window for the buyer to re-register, and capital gains tax implications that differ significantly for UK and US sellers compared to Portuguese residents. This guide covers the full process, including the non-resident CGT rate of 28%, the UK-Portugal Double Tax Convention and how to appoint a fiscal representative.

The Portuguese property market has seen strong appreciation since 2019, and many UK, Irish and US investors who bought for AL purposes are now considering selling. What appears to be a straightforward property sale becomes significantly more complex when an active Alojamento Local (AL) registration is involved. The Decreto-Lei 76/2024 introduced specific obligations for both seller and buyer, and the tax treatment of the gain depends on residency, use of the property and reinvestment plans.

What Decreto-Lei 76/2024 says about selling a property with active AL

Article 9 of Decreto-Lei 76/2024 establishes that the AL licence (RNAL registration) is not automatically transferred to the new owner by the property sale. Specifically:

• The sale does not transfer the RNAL registration: the buyer does not inherit the seller's AL licence.
• The seller is legally required to notify the RNAL (via the Balcao do Empreendedor) of the property transfer within 10 working days of the public deed (escritura publica).
• After the seller's notification, the previous RNAL registration is suspended (not immediately cancelled).
• The new owner has 60 days from the date of the escritura to submit a new RNAL registration in their own name.
• If the buyer does not submit the new registration within 60 days, the original RNAL registration ceases permanently and the property loses its AL licence.

This rule was designed to prevent the effective transfer of AL licences in containment zones where new registrations are suspended. The legislator's intent is that the buyer must meet current registration requirements as they stand on the date of their own application, not as they stood when the seller originally registered.

What must appear in the public deed

Article 9(3) of DL 76/2024 requires the escritura publica of the sale to expressly declare:

• The active RNAL registration number.
• The registration expiry date (5-year validity for registrations issued after DL 76/2024).
• The name and NIF (tax identification number) of the current RNAL holder (the seller).
• A declaration by the seller that they will notify the RNAL of the transfer within 10 working days.

The notary is responsible for verifying these elements before executing the deed. If the property has an active AL but the deed does not mention the RNAL registration, the notary may refuse to execute the deed or the Land Registry may request a rectification. Foreign buyers using a Portuguese lawyer (advogado) or solicitor should ensure this clause is explicitly included in the CPCV (promissory purchase and sale agreement) before the final deed is executed.

The seller's notification process

The seller's notification of the property transfer to the RNAL is submitted electronically at the Balcao do Empreendedor (gov.pt) using Chave Movel Digital or Cartao de Cidadao authentication. For non-resident sellers without these Portuguese digital identity tools, the notification can be submitted by a legally appointed representative (procurador) holding a notarised power of attorney.

The notification requires the RNAL number, the buyer's NIF (tax identification number) and a copy of the escritura or a certidao permanente (permanent certificate) from the Land Registry confirming the ownership transfer. Missing the 10-working-day deadline exposes the seller to a fine of EUR 1,000 to 5,000 under Article 32 of DL 76/2024 and potential civil liability to the buyer if the late notification causes the buyer to miss the 60-day re-registration window.

Buyer due diligence before the escritura

UK, Irish and US buyers purchasing a Portuguese property with active AL should complete specific due diligence before signing the CPCV:

• Verify the RNAL status: the registration number should be active and within the 5-year validity period. Registrations expiring within 6 months carry risk: renewal may be denied in containment zones.
• Check the registered AL type: the type recorded in the RNAL (apartment, villa, rooms) must match the buyer's intended use.
• Condominium restrictions: check with the Conservatoria do Registo Predial (Land Registry) for any registered condominium veto on AL. A registered veto prevents new AL registrations even if the property currently has an active one.
• Containment zone status: verify whether the parish (freguesia) is in an absolute containment zone. Even if the current owner has an active AL registration, the buyer's new application may be refused if the area entered containment after the seller's original registration.
• Caducidade (automatic lapse): DL 76/2024 introduced automatic lapse provisions for AL registrations where the building has permanent residential occupancy on other floors. Verify whether this applies to the specific property.

Including a suspensive condition in the CPCV is strongly recommended: for example, "This agreement is conditional on the RNAL confirming that a new AL registration can be issued to the buyer for this property at the date of their application." Without this clause, if the buyer's new registration is refused, they are bound to complete a purchase that cannot generate AL income.

Portuguese capital gains tax for non-resident sellers

The tax treatment of the gain (mais-valia) on the sale of a Portuguese property is governed by CIRS Article 10. The key distinction is between Portuguese fiscal residents and non-residents:

For Portuguese fiscal residents: only 50% of the gain is included in taxable income and taxed at the marginal income tax rate (26% to 48% depending on total income). The gain may be fully exempt from tax if the proceeds are reinvested in another primary residence in Portugal or the EU/EEA within 36 months of the sale, provided the property sold was the seller's primary residence for the 24 months before the sale. AL-only properties (not used as primary residence) do not qualify for the reinvestment exemption.

For non-resident sellers (including UK and US nationals): the flat rate is 28% on 100% of the gain (not 50%). There is no reinvestment exemption available to non-residents. This is a significantly higher effective tax burden than for residents and is one of the most important tax planning considerations for UK and US AL investors exiting the Portuguese market.

Capital gains calculation: the formula

The mais-valia is calculated as:

Gain = Sale value - (Purchase value x monetary correction coefficient) - acquisition costs - improvement costs

• Sale value: the price declared in the escritura (the AT may use the VPT - taxable value - if it is higher than the declared price).
• Purchase value adjusted by coefficient: the original purchase price is multiplied by the monetary correction coefficient published annually by the Portuguese government to account for inflation. For a property purchased in 2015, the coefficient for 2026 is approximately 1.15 to 1.20 (coefficients are published in a Portaria each year).
• Acquisition costs: IMT paid at purchase, Imposto de Selo, notarial fees, estate agent commission paid by the buyer, legal fees. All must be documented with original receipts.
• Improvement costs: documented renovation or improvement works carried out in the last 12 years (for works carried out before that, the deductibility period has passed). Must be supported by invoices issued to the owner's NIF. Works for routine maintenance are not deductible: only capital improvements are.

The UK-Portugal Double Tax Convention

The Convention between the United Kingdom and the Portuguese Republic for the Avoidance of Double Taxation (signed 1994) is the primary protection for UK sellers of Portuguese property against being taxed twice on the same gain. Under the Convention:

• Capital gains from the sale of immovable property (real estate) located in Portugal are taxable in Portugal under Article 13 of the Convention.
• The UK has the right to also tax the same gain (as a UK resident), but must give credit for the Portuguese CGT paid (Foreign Tax Credit).
• UK sellers report the Portuguese property gain on their UK Self Assessment return and claim Foreign Tax Credit equal to the Portuguese CGT paid (28% on the full gain for non-residents). Since the UK CGT rate on property for higher-rate taxpayers is 24% (from 2024 onwards), and the Portuguese rate for non-residents is 28%, the Portuguese tax is higher: the UK Self Assessment liability on the same gain is nil because the Portuguese tax already exceeds the UK rate.

For US sellers, the US-Portugal Income Tax Convention (signed 1994) operates similarly: Portuguese CGT on property sale is creditable against the US federal income tax liability on the same gain. US citizens must also be aware of PFIC rules and FIRPTA does not apply (FIRPTA is US-domestic; Portuguese property is not a US real property interest).

Appointing a fiscal representative for the sale process

Non-EU sellers (including UK nationals post-Brexit and US nationals) who do not have a Portuguese fiscal representative already appointed must appoint one for the sale process. The fiscal representative is required by Portuguese tax law for non-EU residents who hold assets in Portugal generating taxable income or capital gains. Functions of the fiscal representative include:

• Receiving AT correspondence and notifications during the sale process.
• Submitting the IRS declaration for the year of sale (which must include the capital gain in Anexo G of the Modelo 3 IRS form).
• Liaising with the AT on any queries about the gain calculation or supporting documents.
• Submitting the mandatory pre-sale notification to the AT (required before the escritura if the seller is a non-resident).

Cost of a fiscal representative for a property sale: typically EUR 500 to 1,500 for the full service covering representation during the sale year and the subsequent IRS declaration. Firms specialising in non-resident property sales include Portuguese tax law firms and international practices with Portuguese offices.

Sale process timeline for AL property

Step	Responsible party	Deadline
RNAL verification (status, validity, type, zone)	Buyer + buyer's lawyer	Before signing CPCV
Suspensive condition in CPCV re new RNAL registration	Buyer's lawyer	At CPCV signing stage
AL declaration in public deed	Notary	At escritura
Seller notification of transfer to RNAL	Seller (via Balcao do Empreendedor or procurador)	10 working days after escritura
Buyer new RNAL registration	Buyer (via Balcao do Empreendedor)	60 days after escritura
Capital gains IRS declaration (Modelo 3 Anexo G)	Seller (via fiscal representative if non-resident)	Following April after sale year
UK Foreign Tax Credit claim (Self Assessment)	UK resident seller	31 January following UK tax year of sale

For the full picture of owning and managing Portuguese AL as a foreign investor, see also buying Portuguese property as a foreigner: CPCV, IMT and due diligence and our overview of UK-Portugal double tax treaty and short-term rental income 2026.