Do I pay tax on an inheritance?
There's no inheritance tax in Portugal — and close family is exempt. The inheritance tax was abolished in 2004. Gratuitous transfers (inheritances and gifts) are subject to 10% Stamp Duty (item 1.2), but the spouse, de facto partner, descendants (children, grandchildren) and ascendants (parents, grandparents) are EXEMPT from that 10%. There's a catch, though: when you inherit real estate, an extra 0.8% Stamp Duty applies (item 1.1), not covered by the family exemption — even exempt heirs pay 0.8% on the property. The 10% applies to siblings, uncles, cousins, friends and others. It's declared with Stamp Duty Form 1. In short: no, and close family pays almost nothing.
📋 The rules
- No inheritance tax (abolished in 2004)
- Inheritances: 10% Stamp Duty (item 1.2)
- Spouse, children, grandchildren, parents: exempt from the 10%
- Real estate: 0.8% Stamp Duty (even if exempt)
- 10% applies to siblings, uncles, cousins, friends
🔓 Exceptions
- Family exemption: 0% of the 10%, but 0.8% on real estate
- Life insurance and certain benefits are generally outside it
- Low-value movables often don't enter the declaration
⚠️ Penalties & fines
Close family pays almost nothing: 0% of the 10% and only 0.8% on any real estate. Other heirs pay 10%. The obligation is declarative: you must file Stamp Duty Form 1 by the end of the 3rd month following the death. Not filing on time is an offence (RGIT), with a fine of about €150 to €3,750 and interest. Beware the Brazil confusion: "there's a hefty inheritance tax, like the ITCMD" is false — Brazil levies the ITCMD (a state tax up to ~8%, even on children and spouse), but Portugal has no inheritance tax, and close family pays nothing beyond the 0.8% on real estate. To handle an inheritance: file Form 1 on time and check whether there's real estate (0.8%).
📎 Official sources
- Tax Portal — inheritances and gifts →
- Stamp Duty Code — item 1.2 and art. 6 →
- ePortugal — transfer of assets on death →
❓ Frequently asked
Do I pay tax on an inheritance in Portugal?
As a rule, no. Portugal has had no inheritance tax since 2004. Inheritances are subject to 10% Stamp Duty, but the spouse, de facto partner, children, grandchildren, parents and grandparents are exempt from that 10%. So an inheritance from close family has almost no tax cost.
Who is exempt from the Stamp Duty?
The spouse, de facto partner, descendants such as children and grandchildren, and ascendants such as parents and grandparents are exempt from the 10% Stamp Duty on inheritances and gifts. The 10% only applies to heirs outside this circle, like siblings, uncles, cousins, friends or other non-family beneficiaries.
Even if exempt, do I pay anything on inherited property?
Yes. Although close family is exempt from the 10%, the gratuitous transfer of real estate is subject to 0.8% Stamp Duty, not covered by the family exemption. So even exempt heirs pay 0.8% on the taxable value of the property they inherit.
How do I declare an inheritance?
An inheritance is declared to the tax office through Stamp Duty Form 1, to be filed by the end of the third month following the death. Failing to file, or filing late, is an offence, punishable by a fine and interest, so it's wise to meet the deadline, even with an exemption.
Does Portugal have an inheritance tax like Brazil?
No. In Brazil, there's the ITCMD, a state tax on inheritances and gifts that can reach about 8% and even applies to children and spouses. In Portugal, there's no inheritance tax, and close family is exempt from Stamp Duty, paying at most 0.8% on inherited real estate.
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