If you’re a non-resident in Portugal, you may wonder whether you are subject to inheritance tax in Portugal—specifically, Stamp Tax (Imposto de Selo)—on assets in the country upon your passing. Understanding Portuguese inheritance laws is crucial for estate planning and ensuring tax efficiency.
What Is Stamp Duty in Portugal?
Stamp Tax is a legal levy on various acts, contracts, documents, and financial transactions in Portugal. It applies to specific gifts and inheritances not subject to VAT, as outlined in the Stamp Tax Code.
General Rule: Does Stamp Duty Apply to Non-Residents?
In Portugal, inheritance tax for non-residents is typically assessed through Stamp Duty. The general rule states that a 10% tax rate applies to the gratuitous acquisition (inheritance or gift) of Portuguese-based assets, calculated based on the tax value of the inherited asset.
What Assets Are Subject to Inheritance Tax in Portugal for Non-Residents?
If a non-resident inherits assets in Portugal, Stamp Duty may apply. The following Portuguese-sited assets are subject to inheritance tax in Portugal for non-residents:
- Real estate: Ownership or rights over immovable property in Portugal.
- Registered movable assets: Vehicles, boats, aircraft, and other registered assets in Portugal.
- Company shares and securities: Shareholdings in Portuguese companies, securities, and associated credit rights.
- Bank accounts & monetary values: Deposits in Portuguese banks or institutions with effective management in Portugal.
- Crypto assets & non-deposited funds: If the deceased was domiciled in Portugal.
- Business establishments: Commercial, industrial, or agricultural businesses operating in Portugal.
- Intellectual property: Industrial property rights, copyrights, and related assets registered in Portugal.
- Credit rights: Debts owed by Portuguese residents, companies, or permanent establishments.
Are There Any Stamp Duty Exemptions?
Yes, Portugal exempts direct family members from Stamp Duty. If assets are inherited between:
- Parents and children
- Spouses
No inheritance tax (Stamp Duty) is applied in these cases.
Conclusion: What Should Non-Residents Know About Portuguese Inheritance Tax?
For non-residents in Portugal, inheritance tax obligations depend on whether the inherited assets are Portuguese-sited. Heirs or legatees of non-residents must pay Stamp Duty at 10% on assets considered to be in Portugal, except in cases where exemptions apply (e.g., direct family transfers).
Understanding inheritance tax is essential for effective estate planning. If you own assets in Portugal, consulting our team can help optimize your inheritance strategy and minimize tax liabilities.
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