What Happens In Portugal When Both Donor And Donee Are Non-Residents?

A common misconception is that Portugal only taxes gifts when one of the parties lives there. In this episode, we explain what actually matters when both the donor and the recipient are non-residents—and why asset location remains decisive.

🔎 What You’ll Learn in This Episode:

1️⃣ Residence Is Not the Deciding Factor

Even where neither the donor nor the donee is resident in Portugal, Portuguese Stamp Duty may still apply.

➡️ The key question is where the gifted asset is located.

2️⃣ When Stamp Duty Can Still Apply

If the gifted asset is located in Portuguese territory:

• The gift may fall within the Portuguese Stamp Duty system

• Family exemptions may still apply under Article 6(e) of the Código do Imposto do Selo

This means that qualifying transfers between close family members can remain tax-exempt, even in fully non-resident scenarios.

3️⃣ When No Stamp Duty Applies at All

Where the gifted asset is located outside Portugal:

• The gift falls entirely outside the Portuguese Stamp Duty regime

• No Stamp Duty applies, regardless of the residence of the donor or recipient

This territorial limitation is expressly confirmed by Article 4(3) of the Código do Imposto do Selo.

4️⃣ Practical Takeaway

For gifts involving two non-residents:

• Asset in Portugal → Stamp Duty rules apply (with possible family exemptions)

• Asset outside Portugal → No Portuguese Stamp Duty, full stop

Understanding this distinction helps avoid unnecessary filings and ensures correct application of exemptions.

This episode reinforces a central theme of Portuguese gift taxation: asset location matters more than tax residence, even when both parties live abroad.