Freedom24 and the IRS in Portugal: How to Declare Capital Gains in Annex J (2026)

If you have an account with Freedom24 and have already sold stocks, ETFs, or bonds this year—or received dividends or interest on uninvested balance—you will need to declare this in the IRS in 2027 (for 2026). The good news is that the process is straightforward once you understand the correct annex and how the new discount table works.

Why Annex J and not Annex G

Annex G is intended for capital gains made through financial intermediaries with headquarters or tax representation in Portugal. Since Freedom24 is regulated by CySEC in Cyprus and does not have a Portuguese tax intermediary, income obtained through it—capital gains, dividends, and interest—goes to Annex J (foreign income). The same logic applies to other foreign brokers such as Trading 212, XTB, Interactive Brokers, or Trade Republic.

Flat rate of 28% or aggregation

Every year, when filing the IRS, you have two options for capital gains:

• Flat rate of 28% on the annual positive balance—this is the automatic, simpler option, and it usually benefits those already in a tax bracket exceeding 28%.
• Aggregation—adds capital gains to other income and applies the progressive IRS rates. It may benefit those with lower annual income, but it requires aggregating all capital income and gains for the year, not just a part.

If you incur capital losses, aggregation allows you to report these for up to 5 subsequent years to offset future gains—with the flat rate of 28%, this isn’t possible.

The holding time discount (Law 31/2024)

Since June 28, 2024, the longer you hold a stock or ETF before selling, the lower the percentage of gain subject to tax. The table applies to shares and units of open-end funds traded on regulated markets (not applicable to cryptoassets, derivatives, warrants, or assets in privileged tax regimes):

Note: if the household income reaches the 80,000€ bracket, aggregation may become mandatory regardless of these discounts—confirm with a certified accountant for your specific case.

How the gain is calculated: the FIFO method

When you sell part of a position, the Tax Office assumes that you sold the oldest shares first—the so-called FIFO method (First In, First Out). The gain is: sale value − purchase value (of the oldest shares) − associated fees. This is particularly relevant for those investing monthly in the same ETF: each partial sale “consumes” the oldest purchases first, which also influences the holding time counted for the table above.

Interest on uninvested balance also counts

Freedom24 pays interest on uninvested balances in euro or dollar. This interest is capital income (category E) and should also be declared in Annex J—separately from capital gains, with its own flat rate of 28% (or aggregation option).

Common mistakes to avoid

• Forgetting to convert all amounts to euros at the exchange rate on the date of each operation, not the current rate;
• Confusing Annex G with Annex J out of habit from holding an account with a Portuguese broker;
• Not keeping the annual statement of operations from Freedom24—request it in the account area before completing the IRS;
• Ignoring the holding time per individual position, losing the discount you are entitled to on the oldest shares.

This article is informative and does not replace personalized tax advice—for your specific case, always confirm with a certified accountant or the Tax Portal. If you are still deciding where to open an account, we have already answered the most common questions about security and regulation in Is Freedom24 safe? Regulation, protection and opinions (2026).

Open an account at Freedom24 →

Educational content, not tax or investment advice. Always confirm your specific situation with a certified accountant. Investing carries risk of capital loss.

If you want to better understand where this income fits in the Portuguese tax system, our complete guide to IRS income categories (A to H) explains the difference between Category E (interest and dividends) and Category G (capital gains), and how the 28% flat rate works.

Educational content, not tax advice. Rates refer to the 2026 tax year and may be updated in future State Budgets — always confirm current values on the Portal das Finanças or with a certified accountant before making decisions.