Judgment_paragraph 27 · Commission of the European Communities v Portuguese Republic (C-345/05)

27Furthermore, it is clear from an examination of Article 10(5) of the CIRS that, contrary to the argument put forward by the Portuguese Republic, the alleged link between the tax advantage granted to the taxpayer and tax treatment of that advantage is questionable. There can be no capital gains tax thereon in the future unless such gains are realised. Also, as long as the person concerned purchases a new property as his residence in Portugal, he can always rely on the exemption provided for in Article 10(5) of the CIRS.