Inheritance tax is a topic many expats avoid thinking about, yet it affects your family’s financial security. In Portugal, the inheritance tax system is surprisingly favourable compared to other European countries.

Does Portugal Have Inheritance Tax?

There is no inheritance tax at the national level. When someone dies and leaves their estate to heirs, there’s no federal tax on the transfer. This is a significant advantage for expats with substantial assets.

What About Stamp Duty?

While inheritance tax doesn’t exist, stamp duty applies to certain transfers. IMT typically applies when someone acquires real property through gift or inheritance. The rate ranges from 0.8% to 8% depending on the property value and the heir’s relationship to the deceased. First-degree heirs (children, spouse) often qualify for exemptions.

Planning Your Estate

Even though inheritance tax is low, proper estate planning is essential. Key considerations include:

• Having a Portuguese will
• Appointing an executor
• Clarifying which country’s law governs your estate

Comparing to Other European Countries

France charges up to 60% on inheritance to unrelated heirs. Germany, Spain, and Italy all have inheritance taxes. Portugal’s lack of inheritance tax puts it ahead of many EU countries.

Contact our team to ensure your Portuguese inheritance is structured properly and tax-efficiently.

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