Are Gifts Between Close Family Members Taxed In Portugal?

Portugal’s approach to family gifts is often misunderstood. In this episode, we explain when gifts between family members are completely tax-free—and why the value of the gift usually does not matter.

🔎 What You’ll Learn in This Episode:

1️⃣ The General Rule: Family Gifts Are Exempt

In Portugal, gifts made between close family members are exempt from Stamp Duty (Imposto do Selo).

This exemption is provided under Article 6(e) of the Código do Imposto do Selo.

2️⃣ Who Qualifies as Close Family

The exemption applies to gratuitous transfers between:

• Spouses

• De facto partners

• Parents and children

• Grandparents and grandchildren

3️⃣ No Value Threshold

A key feature of the Portuguese system is that this exemption applies regardless of the value of the gift.

➡️ Whether the gift is modest or substantial, no Stamp Duty is due when the parties fall within the qualifying family relationships.

4️⃣ Reporting Still Matters

Although no tax is payable:

• Certain gifts may still need to be reported

• Proper documentation and formalisation may be required, particularly for high-value assets or real estate

5️⃣ Practical Takeaway

For close family gifts in Portugal:

• No Stamp Duty applies

• No upper limit on value

• Correct documentation remains essential

This episode clarifies one of the most generous aspects of Portugal’s gift tax framework—helping families transfer wealth confidently and compliantly.