When Does Stamp Duty Apply To Gifts From Non-Residents In Portugal?

Gifts involving non-residents often raise a key question: does Portugal tax the gift because the recipient lives there? In this episode, we clarify when Portuguese Stamp Duty applies to gifts from non-residents—and when it does not.

🔎 What You’ll Learn in This Episode:

1️⃣ The Decisive Factor: Asset Location

Under Articles 1(1) and 4(3) of the Código do Imposto do Selo, Portuguese Stamp Duty applies only if the gifted asset is located in Portugal.

➡️ The location of the asset, not the residence of the donor or recipient, is the primary connecting factor.

2️⃣ Gifts of Assets Located Outside Portugal

If the gifted asset is located outside Portugal:

• The gift falls entirely outside the Portuguese Stamp Duty system

• No Stamp Duty applies, even if the recipient is a Portuguese tax resident

This often surprises taxpayers who assume residency alone triggers taxation.

3️⃣ Why Residence Is Secondary in Practice

Although Portuguese tax residence is relevant in many areas of taxation, for gifts the system is largely territorial.

As a result:

• Foreign assets gifted to Portuguese residents are generally not subject to Stamp Duty

• Portuguese-situs assets gifted by non-residents are taxable (subject to exemptions)

4️⃣ Practical Takeaway

For gifts from non-residents:

• Asset in Portugal → Stamp Duty may apply

• Asset outside Portugal → No Stamp Duty, regardless of the recipient’s residence

Correctly identifying where the asset is legally located is therefore essential.

This episode helps listeners understand why asset location matters more than tax residence when analysing gift taxation in Portugal—avoiding both over-reporting and missed obligations.