- Blog Post
- Tax, Live in Portugal
The Value of Gifts and Inheritances: How It Affects Your Taxes When You Sell
🧮 The Link Between Stamp Duty and Capital Gains
Under the IRS Code, when an asset was acquired for free (gift or inheritance), its acquisition value for capital gains purposes is generally the value considered for Stamp Duty — even if the transfer was exempt (for example, between parents and children).
So the formula for a future sale is:
Capital gain = Sale price – Value considered for Stamp Duty (+ some expenses)
A low value today means a bigger capital gain — and more tax — tomorrow.
🏠 Property
- Value for Stamp Duty: generally the property’s VPT (tax value) — not its market value.
- The problem: VPTs are often well below market value.
Example: you inherit a house with a VPT of €80,000. Five years later, you sell it for €300,000:
- Acquisition value: €80,000 (the VPT)
- Capital gain: around €220,000 (before inflation adjustments and expenses)
- For residents, 50% of the gain is added to taxable income — potentially taxed at high marginal rates
What you can do:
- Request a new evaluation of the VPT before or soon after the transfer, if it’s clearly outdated (simulate first — it can also increase Stamp Duty or IMI)
- Keep records of renovation and improvement works — they can be added to the acquisition value
- The acquisition value can be updated by official inflation coefficients if you’ve held the property for more than two years
📈 Shares and Company Holdings
- Listed shares: valued at their market price on the date of the transfer.
- Unlisted shares: generally valued based on the company’s book value (equity per share from the latest balance sheet), or other rules depending on the case.
The impact: if a company has a low book value but a high real value (for example, a successful business with undervalued assets), the declared value will be low — and the future capital gain will be high.
Tip: before gifting or restructuring shares, consider the value that will be recorded and its future tax impact.
₿ Crypto-Assets
- Since 2023, gratuitous transfers of crypto-assets are expressly within the scope of Stamp Duty, valued at their market value on the date of the transfer.
- When the beneficiary later sells, the acquisition value is generally the value considered for Stamp Duty.
- Important: crypto held for more than 365 days may benefit from an IRS exemption on capital gains — and, for gifted or inherited crypto, the holding period rules can be complex.
Tip: keep a record of the date and the market value of the crypto at the time of the transfer.
⚠️ Common Mistakes
- Ignoring the value declared because “we’re exempt anyway”
- Not checking the VPT of an inherited property before selling
- Losing documentation of the transfer and of improvements made
- Not planning gifts of shares or crypto with the future sale in mind
💡 Planning Tips
- Think about the future sale when receiving or giving assets.
- Check the VPT of properties and consider a new evaluation when it makes sense.
- Keep the Stamp Duty declaration and all supporting documents for as long as you own the asset.
- Get advice on the most tax-efficient timing and structure for gifts within the family.
🚀 Final Considerations
The value declared in a gift or inheritance isn’t just a formality — it follows the asset for life. A few decisions today can save a significant amount of tax when you decide to sell.
📢 Expert Advice: Before selling an inherited property, check the VPT used at the time of the inheritance. It’s the starting point for your capital gains tax — and often a surprise.
Received or planning a gift or inheritance? Step Inside Portugal’s tax team can assess the future tax impact and help you plan — find out more about our tax services here. ✨
This article is for general information only and doesn’t constitute tax advice. It reflects the rules as of October 2026; confirm the rules that apply to your situation.
Save PDF version for later
Share it with friends
Want to learn more? Explore our other resources...
- Blog Post
- Step Inside Accounting, Company
- Blog Post
- Step Inside Accounting, Company
- Blog Post
- Step Inside Accounting, Company