Question on behalf of parents

[gilva18]

Dear all,
I post the following question from my mum and dad, any help would really be appreciated.
Thank you
Steve
We are pensioners living here in the Algarve permantly for over six years, as registered residents.
We have a property registered off shore which we have up for sale. We intend to move back to the U.K. and purchase a permanent residence there. Because our property is off-shore l understand that there is no relief from Capital Gains Tax and that we must pay the full 25% of profit. Does anyone know if this is true please?

[steve]

If the property is remaining offshore the actual transaction will be the sale of the company's shares not the sale of the property. The law on the sale of shares in Portugal changed within the last two years and the profit is now taxable as a capital gain but I do not know the details. There would be no Portuguese roll over relief on a new property in the UK since technically a property is not being sold in Portugal.These are only personal views and it is quite a while since I was involved in anything to do with offshore properties. I would recommend a visit to some one like Sovereign to establish exactly where you stand.

[Bruce Wallis]

When we bought, we were warned by our estate agent, not to get dragged into buying off shore, because the change in regulations and Portuguese law, would mean you would almost definitely get bitten on the bum when we sold.

[gilva18]

Thank you both for your replies which I shall pass on.
Any further opinion would really be appreciated.
Thanks
Steve