Portugal Inheritance Tax for Foreigners

Using the calculator

1. Choose whether you receive an inheritance or a gift.
2. Choose how you are related to the deceased or the giver.
3. Enter the value of your share of what is in Portugal — for a gift, also how much of it is real estate.

The result shows each charge and the total.

No inheritance tax — stamp duty instead

Portugal abolished its inheritance and gift tax in 2004. What you inherit or receive as a gift pays stamp duty (Imposto do Selo) of 10% instead — but the spouse or unmarried partner, children, grandchildren, parents and grandparents are exempt. Brothers and sisters, nephews and nieces, other relatives and friends pay the 10%. A gift of real estate adds 0.8% of its tax value, which close family pay too.

Foreigners and non-residents

The duty is charged on what is situated in Portugal — property, money in Portuguese banks, cars and boats registered there — whatever the nationality or residence of the deceased and the heirs. Property counts at its tax value (VPT), usually below the market price.

What to do and when

The head of the estate (cabeça-de-casal) declares the death to the tax office on Modelo 1 by the end of the third month after the month of the death — even when everyone is exempt. To register a property in the heirs' names you need a declaration of heirs (habilitação de herdeiros) and a Portuguese tax number (NIF). Which country's succession law applies — and whether a will made abroad works in Portugal — are separate questions; a Portuguese lawyer handles the declarations and the registration.