Wealth Tax, Inheritance Tax, and Stamp Duty (Imposto do Selo) in Portugal
Disclosure: This article contains affiliate links. If you buy through them, we may earn a commission at no extra cost to you. Read our full disclosure.
Picture this: a parent dies abroad, they owned a flat in Lisbon, and a letter arrives from Finanças about “Imposto do Selo” with a deadline you don’t understand. Or your accountant mentions “AIMI” and you assumed Portugal had no wealth tax. This guide explains how Portugal really taxes wealth, inheritances and gifts, and who has to file what, and by when.
Does Portugal Have a Wealth Tax or an Inheritance Tax
When I first moved here, I asked three different people whether Portugal taxed wealth or inheritances. I got three different answers. One said “no, Portugal is a haven.” Another said “yes, but only for the rich.” The third shrugged and said, “Ask your contabilista.” All three were partly right, which is the most Portuguese answer possible.
The short version is that Portugal has no general tax on your net worth and no stand-alone inheritance tax in the American or British sense. It does have two mechanisms that do much of the same work. The first is AIMI, an annual surcharge on high-value residential property. The second is Imposto do Selo, the stamp duty, which covers inheritances and gifts along with a long list of everyday transactions.
Why There Is No Classic Net Wealth Tax
Some European countries tax your total net assets every year: bank balances, shares, property and sometimes art. Portugal does not. Your brokerage account, your savings and your pension pot are not added up and taxed each year because they exist. For many retirees and remote workers, that alone is a relief worth understanding properly.
The income those assets produce is taxed, of course. Dividends, interest and capital gains fall under IRS, the personal income tax, and the rules depend on your residency status and any special regime you hold. If you want the full picture on residency and filing, see Portuguese Taxes for Expats: IRS, Tax Residency, and Filing Deadlines. This article sticks to the taxes on holding and transferring wealth, not on earning from it.
The gap this leaves is property. Real estate is the one asset class that Portugal does tax each year based on value, and at the top end it does so twice. Ordinary IMI applies to every property owner. AIMI applies on top of IMI once your residential holdings pass a certain level of tax value.
How Inheritance Is Taxed Through Stamp Duty
Instead of an inheritance tax, Portugal treats inheritances and gifts as “gratuitous transfers.” These are transfers where nothing is paid in return, and they fall under the Stamp Duty Code. In practice this works much like a modest inheritance tax, with one big difference: close family members are largely exempt.
The spouse, the unmarried partner in a recognised união de facto, children and grandchildren, and parents and grandparents are exempt from the main stamp duty charge on inheritances and gifts. Everyone else is taxed on what they receive. That includes siblings, nieces and nephews, friends and stepchildren who were never adopted.
Here is the wrinkle that surprises families. Even exempt relatives can still face a smaller stamp duty charge when the transfer includes Portuguese real estate. The relationship exemption covers the main gratuitous transfer charge, not the separate item that applies to property. Ask your accountant to confirm the applicable rates on the Portal das Finanças before you budget.
Which Assets Fall Within Portuguese Reach
Stamp duty on gratuitous transfers is territorial. It applies to assets considered located in Portugal, whatever the nationality or residency of the person who died or gave the gift. A Lisbon apartment owned by an Australian who never lived here is within scope. A house in Ohio owned by a Portuguese resident generally is not.
Typical in-scope assets include Portuguese real estate, deposits held in Portuguese banks, shares in Portuguese companies and Portuguese-registered vehicles. Assets held abroad usually sit outside Portuguese stamp duty. They may still be taxed by the country where they are held, so the international side needs its own planning.
For newer kinds of accounts, the answer depends on which legal entity holds your money. If you use Wise for multi-currency balances or Trade Republic for investing, check which entity holds your account and which country it is registered in. Your heirs’ accountant will need that detail to decide whether the balance counts as a Portuguese asset.
Imposto do Selo on Inheritances and Gifts
This is where most of the stress happens, mostly because it lands during grief. Families going through Portuguese estate paperwork often find the tax itself manageable. The deadlines and the vocabulary tend to be what overwhelms them.
Who Pays and Who Is Exempt
The person who receives a gift is the taxpayer for it. In an inheritance, each heir is ultimately responsible for their share. The paperwork, however, is driven by the cabeça-de-casal, the head of the estate. This is usually the surviving spouse or, failing that, one of the heirs, following an order set in the Civil Code.
Exempt heirs are the spouse or recognised partner, descendants and ascendants. They still have to go through the declaration process. Being exempt does not mean being invisible. Finanças needs to record the transfer, apply the exemption and, where property is involved, assess any property-related stamp duty. Skipping the declaration because “we’re family, so it’s tax-free” is a real way to end up with penalties.
Non-exempt beneficiaries pay stamp duty on the taxable value of what they receive. Picture Marta, a British expat in Tavira who leaves her flat to her niece in Manchester. The niece is not a descendant, so she owes stamp duty on the flat’s tax value. Being non-resident changes nothing about that obligation.
How Taxable Value Is Calculated
For Portuguese real estate, the starting point is the VPT, the Valor Patrimonial Tributário. This is the official tax value recorded in the property register, the caderneta predial. It is often well below market value, especially for older properties that have not been revalued recently. For bank deposits, the value is the balance on the date of death or gift. For company shares, specific valuation rules apply.
Debts and charges attached to the estate can generally reduce the taxable value. Typical examples are a mortgage on the inherited property or funeral expenses within customary limits. Keep every invoice and bank statement. Portuguese tax offices like paper, and “I remember paying it” will not get you far.
When a gift is in cash or another movable asset, the declared value matters. Small gifts that follow social custom, such as birthday or wedding presents of a normal size, are generally excluded. Large transfers between non-exempt people are fully within scope, even when they go through a modern app rather than a notary.
Gifts Between Family Members and Friends
Lifetime gifts follow the same logic as inheritances. A parent giving a child a deposit for a house is generally exempt from the main charge but still within the reporting system. An uncle giving the same amount to a nephew is taxable. A friend lending money with no paperwork at all may later look like a gift if Finanças asks questions.
Gifts of Portuguese property between family members must be made by public deed or an equivalent authenticated document. The property-related stamp duty is then assessed. If you are planning to pass a home to your children during your lifetime, factor that cost in and compare it with simply leaving the property in your will.
Crypto deserves a separate note. Portugal has expanded its rules to cover gratuitous transfers of crypto-assets, and how they apply depends on where the beneficiary lives and how the assets are held. If you plan to move holdings from a Binance account to a family member’s wallet, get advice first. “It’s just a wallet transfer” is not a tax position Finanças will accept.
Stamp Duty Deadlines and the Declaration Process
If you take one thing from this article, take this section. The deadlines are real, and missing them adds penalties to an already painful situation.
The Declaration Deadline
The Stamp Duty Code, article 26.º, as of October 2026, sets one deadline for both cases. The beneficiary of a taxable gift, or the cabeça-de-casal of an inheritance, must submit the declaration, called the participação, at a tax office. The deadline is the end of the third month after the month in which the tax obligation arose.
For an inheritance, the obligation arises on the date of death. If someone dies on 12 March, the declaration is due by the end of June. For a gift, the obligation generally arises when the gift is made and accepted. If you receive a taxable gift in August, your deadline is the end of November.
A delay of up to 60 days is allowed, but only for a proven justified reason. Expect to show documentation. In practice that means things like a death certificate stuck in apostille processing abroad, or a hospitalisation. Feeling overwhelmed, while completely understandable, is not a documented reason.
Payment After the Assessment
You do not calculate and pay the tax yourself on the day you file. The tax office assesses the stamp duty from your declaration and supporting documents. Under article 44.º n.º 3, as of October 2026, it then notifies you to pay within 30 days.
So the timeline has two stages. First, the declaration by the end of the third month after the month the obligation arose. Second, payment within 30 days of the assessment notice. Watch your post and your Finanças inbox closely during this period. If you are abroad, make sure your tax address and electronic notifications are up to date, because “I never saw the letter” rarely helps.
Payment is usually made by Multibanco reference or bank transfer. If the beneficiary lives abroad and has no Portuguese account, a service such as Wise can move funds from a foreign currency without poor exchange rates. For broader strategies on moving money, see Transferring Money to Portugal: Saving on Exchange Rates and Fees.
Step-by-Step Filing for an Inheritance
Here is the process I walked my friend through when her mother passed away. Her mother owned a flat in Porto and had a Portuguese bank account.
- Obtain the death certificate and, if the death happened abroad, get it apostilled and translated into Portuguese where required.
- Identify the cabeça-de-casal, usually the surviving spouse or the eldest heir, according to the Civil Code order.
- Arrange the habilitação de herdeiros, the formal deed identifying the heirs, at a notary or a Balcão das Heranças at a civil registry.
- Make sure every heir has a Portuguese NIF, including non-residents, and that addresses are correct with Finanças.
- Gather the list of Portuguese assets: the caderneta predial for each property, bank statements at the date of death, and any share or vehicle records.
- Gather documents for deductible debts, such as mortgage statements and funeral invoices.
- Complete the stamp duty declaration, the Modelo 1, and submit it at a tax office or electronically where available, by the end of the third month after the month of death.
- Wait for the assessment and pay within 30 days of being notified.
- Once the tax position is settled, update the land registry and bank accounts into the heirs’ names.
If you are handling this from outside Portugal, a certified accountant or lawyer with a power of attorney can do almost all of it for you. See Finding an English-Speaking Certified Accountant (Contabilista Certificado) for what to look for.
AIMI: Portugal’s Closest Thing to a Wealth Tax
AIMI, the Adicional ao Imposto Municipal sobre Imóveis, is the tax people mean when they say “Portugal has a property wealth tax.” It is charged once a year on top of ordinary IMI. It is based on the total VPT of the residential urban property and building land you own in Portugal. Properties classified as commercial, industrial or services are generally excluded.
Rates and Brackets for Individuals and Companies
The rates as of October 2026, under CIMI articles 135.º-C and 135.º-F, are in the table below. Read it carefully, because individuals and companies are treated very differently.
| Owner type | Deduction from total VPT | Rate on taxable VPT |
|---|---|---|
| Individual | €600,000 deducted first, for individuals | 0.7% up to €1,000,000 of VPT |
| Individual | Same deduction | Marginal 1% on VPT above €1,000,000 up to €2,000,000 |
| Individual | Same deduction | Marginal 1.5% on VPT above €2,000,000 |
| Company, general case | No deduction | 0.4% on the whole VPT |
| Company-owned homes used personally by shareholders, directors or their families | No deduction | 0.7%, 1% and 1.5% |
| Entities in a tax-haven regime | No deduction | 7.5% |
For an individual, the method works like this. Add up the VPT of all your residential property and building land in Portugal. Subtract €600,000. Apply 0.7% to the remainder. Then apply the higher marginal rates only to the slices of VPT above €1,000,000 and above €2,000,000. If your combined VPT stays at or below €600,000, you owe no AIMI at all. Most expats owning one or two ordinary flats sit comfortably below that line.
Companies are the opposite. A company pays 0.4% on its entire VPT from the first euro, with no deduction. A lower rate on a bigger base can still cost a lot. For a company holding one modest rental flat, that can mean an AIMI bill where an individual owner would have paid nothing.
Married Couples, Joint Taxation and Undivided Estates
Married couples and those in a recognised união de facto can opt for joint taxation for AIMI. This changes how the deduction and brackets apply to the household. The option is made on the Portal das Finanças within a set annual window. Check the current procedure there before the window closes. Couples where one spouse holds all the property in their own name often benefit most from looking into it.
Undivided estates, the herança indivisa, are taxed at 0.7% like individuals. This matters because Portuguese families often leave inherited property undivided for years, sometimes decades. There are procedures to have each heir’s share attributed and taxed in their own name. Ask your accountant whether that is worthwhile, since it can change the bill depending on what else each heir owns.
If you are inheriting several properties alongside siblings, the AIMI position is one more reason to settle the estate rather than letting it drift. To see how AIMI fits alongside ordinary IMI and when each is collected, see Property taxes (IMI and AIMI): When to pay them and how to calculate the cost.
Why Holding Property Through a Company Rarely Helps
Every year I hear someone at an expat dinner suggest buying a villa through a company to “save tax.” AIMI is one of the main reasons that idea usually falls apart. A company pays 0.4% on its whole VPT with no deduction. If the home is used personally by shareholders, directors or their families, it is taxed at the same 0.7%, 1% and 1.5% rates as individuals.
Offshore structures are worse. Property owned by an entity in a tax-haven regime is taxed at 7.5%, an enormous annual cost compared with any other route. It is also exactly the kind of setup that draws extra scrutiny from Finanças.
There can be genuine business reasons to hold rental or development property in a Portuguese company, such as accounting, liability or financing. If AIMI is part of your reasoning, though, run the numbers with a professional first. Very often, owning in your own name is both simpler and cheaper.
Everyday Stamp Duty You Will Meet as an Expat
Inheritance is the dramatic side of Imposto do Selo, but the everyday side touches almost everyone. It comes up as a small line on a bank statement, a charge on a loan or a fee on a lease. Once you know to look for it, you will see it everywhere.
Property Purchases and Mortgages
When you buy property in Portugal, you pay IMT, the property transfer tax, plus stamp duty on the purchase deed. If you finance with a mortgage, stamp duty is also charged on the loan itself and on certain related operations. These amounts are calculated at closing and usually paid before or on the day of the deed.
None of this is optional, and it all adds up quickly on a purchase. Your lawyer or solicitadora should give you a written breakdown before you sign the CPCV, the promissory contract. For a full walkthrough of closing costs, see Buying Real Estate: IMT Tax, Stamp Duty, and Closing Costs Explained. If you are borrowing, Mortgages in Portugal for Foreigners: Rates and Requirements covers the loan side.
Banking, Credit, Insurance and Leases
Stamp duty is charged on many banking operations. Examples include bank fees and commissions, interest on loans and overdrafts, consumer credit and the use of credit. That is why a “maintenance fee” on a Portuguese account usually appears with a small extra charge beside it. You are not being overcharged twice. The tax is simply shown as its own line.
Insurance premiums also carry stamp duty, and so do some other levies included in the price of home and car policies. Rental contracts carry stamp duty too, typically handled by the landlord when registering the lease with Finanças. Gambling prizes, certain guarantees and a long list of other documents and contracts complete the picture.
The good news is that you rarely have to calculate or declare these yourself. The bank, insurer or other party collects the tax and passes it to the state. Your job is mostly to recognise it and to budget for it on large operations such as a mortgage or a big personal loan.
Comparing the Main Taxes on Wealth and Transfers
This summary table is the one I wish someone had given me in my first year. It covers the main transfer and wealth taxes, who usually pays and when.
| Tax or charge | What triggers it | Who usually pays | Timing |
|---|---|---|---|
| Stamp duty on inheritances | Death of an owner of Portuguese assets | Heirs, with paperwork led by the cabeça-de-casal | Declaration by end of third month after the month of death, payment within 30 days of notification |
| Stamp duty on gifts | Gratuitous transfer of Portuguese assets during life | The beneficiary | Declaration by end of third month after the month of the gift, payment within 30 days of notification |
| Stamp duty on property purchase | Buying Portuguese real estate | The buyer | At or before the deed |
| Stamp duty on loans and banking | Credit, interest, fees | The borrower or customer, collected by the bank | Automatically, as charged |
| AIMI | Owning residential property and building land; individuals above the €600,000 deduction, companies from the first euro | Individuals, undivided estates and companies | Annually, after Finanças issues the assessment |
| IMI | Owning any Portuguese property | The registered owner | Annually, per the Finanças notice |
Practical Planning for Expats and Their Families
Knowing the rules is half the battle. The other half is setting things up so your family isn’t left solving puzzles from another time zone during the worst week of their lives.
Making a Portuguese Will and Organising Paperwork
If you own property in Portugal, consider a Portuguese will, a testamento, covering your Portuguese assets. Have it drafted by a notary or lawyer who knows how it works alongside your will at home. Under EU succession rules, you may be able to choose the law of your nationality to govern your estate. Get advice on this, because it affects Portugal’s forced heirship rules, which reserve a share of the estate for close family.
Keep a simple folder, physical or digital, that your heirs can find. It should hold your NIF and Finanças access details, the caderneta predial for each property, account details for every Portuguese bank and broker, your accountant’s contact and a copy of the will. If you use platforms like Trade Republic or hold crypto, include a plain note on what you hold and where. Never include passwords in an unsecured document.
Make sure the people likely to inherit already have Portuguese NIFs, or at least know they will need one. A non-resident heir getting a NIF from abroad can take time. With the declaration due by the end of the third month after the month of death, time is the one thing you won’t have spare.
Handling Inherited Money Coming From Abroad
The reverse situation is just as common. You live in Portugal and inherit money from a parent in the UK, the US or elsewhere. Foreign assets generally fall outside Portuguese stamp duty because they are not located in Portugal. The country of origin may tax the estate under its own rules, and Portugal’s double tax treaties mostly deal with income, not estates.
The real headache is often practical. Your Portuguese bank will want to know where a large incoming transfer came from. Expect to show the will, the grant of probate or equivalent, and statements from the executor. For a detailed walkthrough, see How to legally transfer an overseas inheritance into a Portuguese bank account.
Once the money is here, any income it produces is taxed under IRS. That includes interest, dividends and gains. Investing an inheritance is a separate tax conversation, and Wealth Building and Investing in Portugal: Capital Gains and Crypto Taxes is a good place to start it.
When to Bring in a Professional
You can absolutely handle a simple case yourself. One example is an exempt child inheriting a parent’s single flat and a Portuguese account, with everyone resident and fluent enough to deal with the tax office. Many Portuguese families do exactly that. The Portal das Finanças has grown much more usable over the years. For a guided tour, see The Portuguese Tax Authority Portal (Portal das Finanças).
Bring in a contabilista or lawyer in any of these situations:
- There are non-exempt beneficiaries.
- There are heirs living in several countries.
- The estate includes company shares or crypto.
- Combined property values come anywhere near the AIMI deduction.
- Someone is considering lifetime gifts of property.
Their fee is small next to the cost of a missed deadline or a wrongly claimed exemption.
For a broader family-focused look at these rules, see Inheritance and Gift Tax in Portugal: What Expats Should Know. Read it alongside this guide before you sit down with your advisor, so you arrive with the right questions.
I’ll end with what I told my friend in Porto, as she sat at her kitchen table surrounded by envelopes. The tax system here is not out to get you, but it does not wait for you either. Mark the end of the third month on the calendar the day you start. Gather the papers early. Ask for help before you need it, not after.
Disclaimer
This article is for general informational purposes only and does not constitute professional advice. Laws, prices and regulations vary by location and change over time. Consult a qualified professional for guidance on your specific situation.
