Inheritance and Estate Tax in Portugal

Portugal removed its traditional inheritance and gift tax from the statute book on 1 January 2004 when the Imposto sobre as Sucessoes e Doacoes was abolished by the 2004 State Budget Law. The government replaced it with expanded provisions inside the Codigo do Imposto do Selo (Stamp Duty Code), approved by Law No. 150/99 of 11 September 1999 and since amended. The result is a framework that is generous to direct family but applies a flat levy to everyone else. Understanding where you fall on that spectrum -- and whether your assets have Portuguese situs -- determines whether any tax is owed at all.

Does Portugal have an inheritance tax?

Not in the classical sense. Portugal does not impose a standalone inheritance tax (imposto sucessorio) on estates. What it does impose is Imposto do Selo on gratuitous transmissions -- a broad category that covers both transfers on death (herancas) and lifetime gifts (doacoes). The Stamp Duty Code's General Table, item 1.2, sets the rate at 10% on the taxable value of property transmitted without consideration by a person who was resident in Portugal, or on Portuguese-situs assets regardless of the parties' residence [1]. The three-month declaration window opens on the date of death: all heirs must file Participacao Modelo 1 with the Autoridade Tributaria e Aduaneira (AT) by the end of the third month following the death, even when no tax is ultimately owed [2].

Who is exempt from the 10% stamp duty?

Article 6(1)(e) of the Stamp Duty Code grants a full exemption from the 10% rate to four categories of beneficiary: the spouse or legally recognised de facto partner (uniao de facto), descendants (filhos, netos, and further generations), and ascendants (pais, avos, and further generations) [1]. Adopted children and adoptive parents fall within the same exempt categories. The exemption applies to the entire value of the estate or gift -- there is no monetary threshold above which even exempt family members become taxable. Siblings (irmaos), nephews, cousins, and unrelated third parties do not qualify for the exemption and owe the 10% rate on the full taxable value of Portuguese assets received [3].

For lifetime gifts, the same Article 6 exemption applies. Gifts between exempt family members must still be declared to AT within three months of the gift deed (escritura de doacao), but no Imposto do Selo at 10% is charged. Small monetary gifts -- typically those below approximately EUR 500 -- between any parties are outside the scope of the declaration requirement for de minimis personal transfers under Article 1(4) of the Code [2].

What is the 0.8% real estate stamp duty?

Even when a transfer falls within the exempt family categories, a separate stamp duty at 0.8% applies specifically to the transmission of real property rights (direitos sobre bens imoveis). This rate appears in item 1.1 of the Stamp Duty General Table and is charged on the higher of the Valor Patrimonial Tributario (VPT, the officially assessed rateable value) and the stated transaction value [1]. It applies to all real estate transmissions -- whether the beneficiary is a spouse, a sibling, or an unrelated third party. A sibling inheriting a property valued at EUR 300,000 VPT would therefore owe: 10% on EUR 300,000 = EUR 30,000, plus 0.8% on EUR 300,000 = EUR 2,400, for a combined EUR 32,400. A child inheriting the same property would owe only the 0.8% charge: EUR 2,400 [3].

Which assets fall within Portugal's territorial scope?

The Stamp Duty Code Article 4 grounds Portugal's taxing rights on asset location (lex situs), not on the nationality or tax residence of the parties. Portuguese stamp duty at 10% (and 0.8% for real estate) applies to assets that are situated in Portugal at the time of the transfer. Qualifying Portuguese-situs assets include: urban and rural real estate registered in the Portuguese land registry (Conservatoria do Registo Predial); bank deposits and financial accounts held at Portuguese-licensed institutions; shares or other participating interests in Portuguese companies; and vehicles registered under the Portuguese licensing authority [1]. Assets outside Portugal -- foreign real estate, overseas bank accounts, or shares in foreign companies -- are not subject to Portuguese stamp duty on their transfer, even when the deceased was a Portuguese resident. Non-residents are liable only to the extent their estates include Portuguese-situs property [3].

What is AIMI and when does it apply?

AIMI (Adicional ao Imposto Municipal sobre Imoveis, or Additional to Municipal Property Tax) is not an inheritance or gift tax but is often raised in estate-planning discussions because inherited Portuguese real estate remains subject to it year-on-year after ownership transfers. Introduced in 2017, AIMI is an annual wealth-style levy on the aggregate VPT of residential urban property and building plots held by a taxpayer in Portugal as at 1 January of each year [4]. Individuals receive an annual deduction of EUR 600,000 before the levy applies; married couples or civil partners who opt for joint assessment receive EUR 1,200,000. Progressive rates then apply to the excess: 0.7% on the portion of total VPT between EUR 600,000 and EUR 1,000,000, and 1.0% on any portion above EUR 1,000,000 [4]. Companies and legal entities owning residential property pay a flat 0.4% with no deduction threshold -- a deliberate disincentive to corporate ownership of residential stock. AIMI does not apply to commercial, industrial, tourism, or agricultural properties. The annual assessment is issued by AT in June, based on ownership at 1 January, with payment due by end of September.

Stamp duty rates at a glance

For a broader overview of how Portugal taxes individuals and how these transfer rules fit into the wider tax landscape, see the Portugal country overview. The AT operates a dedicated information portal at info.portaldasfinancas.gov.pt where the Stamp Duty Code and the General Table are published in full. The AT's Modelo 1 form for free transmissions -- and its filing instructions -- are available at info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/modelos_formularios/imposto_selo/.

Portugal's rules are stable for 2025-2026, with no legislative amendments to the core 10% rate or the Article 6 family exemptions announced. Estates that include cross-border elements -- for example, a Portuguese resident who died holding assets in both Portugal and the United Kingdom -- may also need to consider the Portugal-UK double-taxation convention and whether the other country claims taxing rights on the same assets. These multi-jurisdiction scenarios, along with the valuation of unlisted company shares, closely held property portfolios, and AIMI optimisation after inheritance, are situations where the judgment of a qualified Portuguese tax professional (contabilista certificado or advogado-tributarista registered with the Ordem dos Contabilistas Certificados or the Ordem dos Advogados) is warranted. TaxPros Rated lists vetted professionals for Portugal; this page is a neutral informational summary and does not constitute professional guidance.