Does Portugal Have A Gift Tax?

Portugal is often described as having “no gift tax”—but that statement needs context. In this episode, we explain how gifts are actually taxed in Portugal, why the system is different from many other countries, and what that means in practice for donors and recipients.

🔎 What You’ll Learn in This Episode:

1️⃣ No Standalone Gift Tax Regime

Portugal does not impose a separate gift tax in the traditional sense. There is no distinct tax code or schedule labelled “gift tax,” unlike in many other jurisdictions.

2️⃣ Gifts Are Taxed Through Stamp Duty

Instead, gifts fall under Stamp Duty (Imposto do Selo), which applies to specific acts and transactions expressly listed in law.

Under Article 1(1) of the Código do Imposto do Selo, gratuitous transfers (including gifts) are treated as taxable transactions.

3️⃣ What This Means in Practice

Because of this structure:

• Gifts are taxed as events or transactions, not as a separate category of wealth transfer

• The applicable rules depend on the type of transfer, the relationship between the parties, and the asset involved

• Many family transfers benefit from exemptions, even though reporting obligations may still apply

4️⃣ Why This Distinction Matters

Understanding that Portugal taxes gifts through stamp duty—rather than a standalone gift tax—helps avoid:

• Incorrect assumptions based on foreign systems

• Missed filings

• Misinterpretation of exemptions and rates

🎯 Key Takeaway

Portugal does not have a traditional gift tax, but gifts are still within the tax system—classified as taxable acts under Stamp Duty rather than as a separate tax category.