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Gifts and Inheritances in Portugal: Stamp Duty, Territoriality and the Family Exemption

  • Blog Post
  • Tax, Live in Portugal

Gifts and Inheritances in Portugal: Stamp Duty, Territoriality and the Family Exemption

Portugal has no separate inheritance or gift tax — instead, gifts and inheritances are taxed through Stamp Duty (Imposto do Selo). The good news: close family members are exempt. The less obvious part: the tax depends on where the assets are located, a gift of property still pays 0.8%, and you may have to declare the transfer even when no tax is due. Here’s how it works.
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🎁 What Is Taxed?

Stamp Duty applies to gratuitous transfers (transmissões gratuitas) of assets — that is, transfers without payment:

  • Inheritances (on death)
  • Gifts (doações) during life

 

Rate: 10% on the value of the assets received (item 1.2 of the Stamp Duty Table). The person who receives the assets is the one who pays.

🌍 The Territoriality Rule

Portuguese Stamp Duty only applies to assets considered located in Portugal, regardless of the nationality or residence of the person giving or inheriting. For example:

  • Property located in Portugal
  • Vehicles, boats and aircraft registered in Portugal
  • Shares in companies with their seat, effective management or a permanent establishment in Portugal (with additional conditions)
  • Bank deposits in institutions in Portugal
  • Money not deposited in Portugal, in gifts (not inheritances), when the beneficiary is domiciled in Portugal
  • Credits and rights over entities or people resident in Portugal

 

Assets located abroad (such as a house in France or shares in a foreign company) are generally outside Portuguese Stamp Duty — though they may be taxed in the country where they are.

👨‍👩‍👧 The Family Exemption

The 10% doesn’t apply when the beneficiary is:

  • The spouse or de facto partner
  • A descendant (children, grandchildren)
  • An ascendant (parents, grandparents)

 

Siblings, nephews and nieces, friends and other relatives pay 10%.

🏠 Gifts of Property: The 0.8% That Remains

Even when the family exemption applies, a gift of property located in Portugal is still subject to 0.8% Stamp Duty (item 1.1 of the Table — acquisition of property). So, in practice:

  • Gift of a Portuguese property to a child: 0.8% on the VPT
  • Gift of a Portuguese property to a nephew: 10% + 0.8%
  • Inheritance of property by a child: exempt (the 0.8% applies to gifts, not inheritances)

📋 The Obligation to Declare — Even When Exempt

This is the part many people miss. When assets located in Portugal are transferred for free, the beneficiary (or, in inheritances, the head of the estate — cabeça-de-casal) generally has to file the Stamp Duty declaration (Participação Modelo 1) — even if the transfer is exempt.

  • Deadline: by the end of the third month after the month of the death or the gift
  • Where: at a Serviço de Finanças or online (for inheritances, the estate first needs its own NIF)
  • Why it matters: banks often won’t release funds and property can’t be registered without proof of the declaration

 

There are some exceptions — for example, small customary gifts, and certain cash gifts — so check the specific case.

⚠️ What If You Don't Declare?

Failing to file on time can lead to fines, even when no tax is due. And without the declaration, you may face practical problems accessing or registering the assets.

💡 Practical Tips

  • Check where each asset is located for tax purposes — it determines whether Portugal can tax it.
  • Gifts of property within the family still cost 0.8% — plan for it.
  • Keep the deadline in mind: end of the third month after the death or gift.
  • Consider the future: the value declared now will be used to calculate capital gains when the asset is sold later.

🚀 Final Considerations

Portugal is family-friendly when it comes to gifts and inheritances — but the exemption doesn’t mean “nothing to do”. Knowing the territoriality rule, the 0.8% on property gifts and the reporting obligation will help you avoid fines and delays.

📢 Expert Advice: Even if no tax is due, file the Stamp Duty declaration on time. It’s often what banks and the land registry ask for before releasing or registering the assets.

Dealing with a gift or inheritance in Portugal? Step Inside Portugal’s tax team can handle the declaration and assess the tax impact — find out more about our tax services here. ✨

This article is for general information only and doesn’t constitute tax or legal advice. It reflects the rules as of October 2026; confirm the rules that apply to your situation.

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