# Portugal inheritance and gift tax guide [Living in Portugal](/living-in-portugal/) Guide Law as at 19 October 2026 6 min read Signed by our advisers · 4.7 on Google, 43 reviews In short Portugal has no separate inheritance tax: inheritances and gifts of assets in Portugal bear 10% stamp duty. - Spouses, qualifying unmarried partners, descendants and ascendants are exempt from the 10%. - A lifetime gift of Portuguese property also bears a separate 0.8% charge, even to an exempt relative (General Table, items 1.1 and 1.2). - An exempt transfer can still need reporting on Modelo 1 of stamp duty, by the end of the third month after the event. ## Does Portugal have inheritance tax? Portugal taxes many inheritances and gifts to individuals through Imposto do Selo, rather than a separate general inheritance tax. The usual gratuitous-transfer charge is 10% on assets within its scope. Spouses, qualifying unmarried partners, descendants and ascendants are exempt from that 10% charge. A lifetime gift of Portuguese real estate can still carry the separate 0.8% charge, including a gift to an exempt family member. An inheritance does not automatically carry that gift charge. Next step **An inheritance or a gift in Portugal.** Whether stamp duty applies depends on who receives the assets and where they are. We set out the duty and the exemptions that apply, and work with the estate's adviser abroad. [Inheritance and gifts](/services/inheritance-and-gifts/) ## Inheritance and gift stamp duty: the main distinctions **Close family:** a spouse or qualifying união de facto partner, descendants and ascendants are exempt from the 10% gratuitous-transfer charge. **Other recipients:** siblings, nephews, nieces and friends do not receive that direct-family exemption. An in-scope transfer generally bears the 10% charge unless another exclusion or exemption applies. **Property given during life:** the separate 0.8% charge can remain due, and can combine with the 10% charge for a non-exempt recipient. It does not automatically apply to an inheritance. ## Check the transfer, the asset and the recipient The 10% stamp-duty analysis starts with a gratuitous transfer within the stamp-duty scope and territorial rules. Then check an applicable exclusion or exemption and the taxable value. For example, the stamp-duty scope rules contain exclusions for specified insurance and pension rights, personal or household goods and transfers to corporate-income-tax taxpayers. ## Who may be exempt and when The spouse, a qualifying partner in a união de facto, descendants and ascendants in the direct line are exempt from the 10% charge where the legal requirements are met. That still leaves several issues open in real cases: - whether the transfer is taking place on death or during lifetime - whether the family relationship is straightforward or needs documentary support - whether the transfer includes Portuguese real estate or other property rights - whether the filing and evidence requirements have been handled correctly A qualifying unmarried partner means a união de facto recognised under Portuguese law, normally involving more than two years living in conditions analogous to marriage. A foreign “civil partner” label alone does not establish that status. ## Why asset location and asset type matter Expats often assume the analysis turns only on whether there is Portuguese real estate. The rules on gratuitous transfers reach other assets too. Portuguese guidance on gratuitous transfers uses situs and territorial-scope rules that can reach more than one simple category of asset. The analysis may involve review of: - immovable property in Portugal - movable assets registered or treated as located in Portugal - company interests or participation rights - monetary assets and deposit relationships with a Portuguese nexus - claims or rights connected to persons or entities with a Portuguese connection - industrial or intellectual property rights registered or subject to registration in Portugal ## Reporting an inheritance or gift: form and deadline Where notification is required, use Modelo 1 do Imposto do Selo and the appropriate asset schedules. The general deadline is the end of the third month following the event that creates the tax obligation. The estate representative, cabeça-de-casal, normally handles an inheritance; a gift’s beneficiary normally handles the gift notification. A 10% exemption does not necessarily remove this duty. However, the stamp-duty rules contain exclusions and special asset-reporting requirements, including monetary gifts to exempt beneficiaries. ## Forced heirship and tax are separate questions Portuguese succession law can reserve a protected share of the estate for certain heirs. A will may still be an important planning tool, but it does not automatically remove the need to check whether reserved-share rules apply. A transfer can be efficient from a tax perspective and still create disputes, reductions, or unexpected outcomes under succession law. ## Wills and governing-law elections For expats, a will often becomes the main bridge between Portugal and the rest of the estate plan. It sits inside a larger framework of: - local formality requirements - succession-law rules - governing-law elections where available - asset-location analysis - administration and probate practicalities For EU cross-border estates, the EU succession rules can matter because they create a framework under which some people may choose the law of their nationality for succession matters in qualifying circumstances. But that choice does not turn every succession issue into a tax exemption, and it does not eliminate the need to check formal validity, local administration, or the tax treatment of the transfer. The question is not “Can Brussels IV solve this?” It is: “Does a governing-law election help this estate plan once we separate succession-law effects from tax effects and from local formalities?” ## Cross-border inheritance exposure Portugal’s position does not switch off the tax or succession rules of another country. That matters for expats because many estates remain connected to at least one other jurisdiction through: - nationality - habitual residence history - domicile or deemed-domicile rules abroad - foreign real estate - foreign securities, pensions, or trust structures - beneficiaries living in different countries Cross-border exposure can create at least four separate strands of work: - Portugal stamp duty and reporting position - Portuguese succession-law and administration issues - home-country estate, inheritance, or gift-tax exposure - coordination risk, including timing, valuation, and credit-relief issues where relevant ## Lifetime gifts need their own review A lifetime gift of Portuguese property generally bears the 0.8% stamp duty, even where the recipient is exempt from the separate 10% charge. The acquisition value used for capital gains on a later sale also differs. For inherited property, it is generally the stamp-duty value, normally the property's taxable value (VPT) at the date of death. For a property gift covered by the direct-family exemption, it is the VPT shown in the property tax register (matriz) up to two years before the gift. ## Selling an inherited property When you sell a property you inherited, the gain is the sale price less the value used for stamp duty on the inheritance, normally the property's taxable value (VPT) at the date of death. - That value is updated by the official inflation coefficients when you sell more than 24 months after the death. Acquisition and sale costs, and improvement works carried out in the last 12 years, reduce the gain. - 50% of the net gain is taxed at IRS rates, for residents and non-residents alike. - Each heir declares their own share of the gain in their IRS return for the year of the sale, including when the estate is still undivided. - If the death occurred before 1 January 1989, the gain is outside IRS, except on building land. - For the 1989 rule, the whole property dates from the death, including a share you buy from another heir at the partition by paying them compensation (tornas), as the Supreme Administrative Court has held. The tax authority still treats that share as a purchase at the partition's date and value. ## Three transfers with different consequences Assume each transfer concerns privately held Portuguese real estate and no other-country tax is included. The relationship changes the stamp-duty analysis. | Transfer | Portuguese stamp-duty check | Filing point | | --- | --- | --- | | A child inherits a parent’s property | The direct-family exemption can remove the 10% gratuitous-transfer charge; inheritance does not itself trigger the gift’s separate 0.8% charge | Confirm the estate representative’s notification and asset schedule | | A parent gives a child property during life | The 10% direct-family exemption can apply, but the separate 0.8% property-transfer charge can still be due | The beneficiary normally files Modelo 1 and supporting details | | One sibling gives another property | The direct-family exemption does not cover siblings; the 10% charge can combine with the separate 0.8% charge | Identify the beneficiary, taxable value and required filing | ## Frequently asked questions ### Are close relatives exempt from inheritance and gift stamp duty? Spouses, qualifying unmarried partners, descendants and ascendants are exempt from the 10% gratuitous-transfer charge under the direct-family stamp-duty exemption. Siblings, nephews, nieces and friends are outside this direct-family exemption. ### Does it only matter if there is Portuguese real estate? No. The rules can also reach movable assets treated as located in Portugal, company interests, money with a Portuguese connection and certain rights. ### Do I still need to report an inheritance or gift if no tax is due? You may still need to report it. A transfer can be exempt from the 10% charge but still require the Participação de Transmissões Gratuitas, Modelo 1 do Imposto do Selo, with its asset schedule. ### How does a lifetime gift differ from an inheritance? A gift of Portuguese real estate can trigger the separate 0.8% charge even where the beneficiary is exempt from the 10% gratuitous-transfer charge. The responsible person, transfer documents and succession-law effects also differ. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [Property tax in Portugal: IMT, IMI and gains](/guides/portugal-real-estate-tax-guide/) Portuguese property bears IMT and 0.8% stamp duty on purchase, annual IMI, and income tax on rent and on 50% of a sale gain. - Guide · Law as at 19 October 2026 ### [Portugal capital gains tax 2026: residents and non-residents](/guides/capital-gains-tax-portugal/) Check Portuguese capital gains on property and investments: how tax is calculated, eligible costs, reinvestment conditions and residence status. - Guide · Law as at 19 October 2026 ### [UK expat tax in Portugal](/guides/uk-expat-tax-portugal/) Living in Portugal with UK income: pensions, rent and gains under the 2025 convention, tax residence and which returns to file with HMRC and Finanças. ## Tell us about your situation We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/portugal-inheritance-gift-tax-guide/ General guidance only. Individual facts govern.