Does Portugal Have Inheritance Taxes?

Inheritance taxation is one of the most common—and misunderstood—questions when dealing with estates in Portugal. In this episode, we clarify how Portugal actually taxes inheritances and what families should expect when assets pass to the next generation.

The answer may surprise many international families.

🔎 In This Episode, You’ll Learn:

1️⃣ Why Portugal Has No Traditional Inheritance Tax

Portugal does not impose a conventional inheritance or estate tax like many other countries. There is no progressive inheritance tax regime applied to estates as a whole.

2️⃣ The Role of Imposto do Selo

Instead, inheritances are subject to Imposto do Selo (Stamp Duty) on gratuitous transfers, generally charged at a flat rate of 10%.

3️⃣ Who Is Exempt — and Who Is Not

• Exempt beneficiaries:

– Spouses

– Descendants (children, grandchildren)

– Ascendants (parents, grandparents)

• Potentially taxable beneficiaries:

– Siblings

– More distant relatives

– Unrelated beneficiaries

For these recipients, the 10% Stamp Duty may apply depending on the asset and circumstances.

4️⃣ Why This Matters for Estate Planning

Understanding how Portugal treats inheritances is essential for:

• Cross-border estate planning

• Property succession

• Avoiding unexpected tax exposure for non-exempt heirs

This episode provides a straightforward explanation of Portugal’s inheritance tax framework—helping families, heirs, and advisors navigate succession with clarity and confidence.