17 May 2010 External T.I. 2009-0346011E5 F - Immeuble - Convention Canada - Portugal -- summary under Paragraph (a)

A Portuguese citizen and Canadian resident disposes of a (capital property) immovable at a gain that is not taxable under Portuguese tax law. Before addressing the application of Art. 13 and 23 of the Portugal-Canada Convention, CRA noted that if the property qualified as the individual’s principal residence, the gain could be exempted under s. 40(2)(b).