Portugal Inheritance Tax Calculator

Leave your Portuguese estate to your children and the tax bill is zero. Leave the same estate to your sibling and Portugal takes 10%. That is the entire logic of Portuguese “inheritance tax”: the classic progressive tax was abolished in 2004, and what remains is a flat Imposto do Selo (stamp duty) of 10% on gratuitous transfers of Portuguese-situated assets — with a family exemption so wide that most estates pay nothing at all. This calculator applies the relationship test, the 10% rate, and the extra 0.8% property stamp duty in one step.

Why Portugal abolished its traditional inheritance tax

In 2004, Portugal eliminated the progressive Imposto Sobre Sucessões e Doações (inheritance and gift tax) with its multiple brackets and rates. What remains is a simplified Imposto do Selo (stamp duty) on gratuitous transfers — essentially a flat 10% on assets going to non-direct heirs. The reform was driven partly by concerns that the previous progressive system encouraged asset flight and complicated wealth transfers within Portuguese families. The broad family exemption was designed to leave the vast majority of estates (which typically pass between spouses, parents, and children) entirely outside the charge.

Who is exempt and who pays

The rule is simple but the exemption matters more than the rate:

• Fully exempt (0%): spouse or registered de facto partner (união de facto), children, grandchildren, parents, grandparents. These direct-line family members pay no stamp duty on any inheritance or lifetime gift, regardless of size.
• 10% stamp duty: siblings, nephews, nieces, cousins, friends, business partners, unrelated beneficiaries, and anyone outside the direct family line.

How the calculation works

if direct_heir:
    duty = 0
else:
    duty = value × 10%
    if real_estate_included:
        duty += property_value × 0.8%
net_amount = value - duty

If the inheritance includes Portuguese real estate, an additional 0.8% property stamp duty applies on the property’s value, on top of the 10% on the total transfer. This is a separate stamp duty charge, not an additional rate on the full estate.

Worked example

A Portuguese resident leaves €200,000 to their child and €200,000 to a sibling. The estate includes a property worth €100,000 passing to the sibling.

• The child is a direct heir → €0 duty, receives the full €200,000.
• The sibling is a non-direct heir:
  • 10% on total: 200,000 × 10% = €20,000
  • 0.8% property stamp duty: 100,000 × 0.8% = €800
  • Total duty: €20,800. Net received: €179,200.

Assets outside Portugal

Imposto do Selo generally only applies to assets situated in Portugal. Portuguese bank accounts, property, and business interests located in Portugal are within scope. Assets held abroad by a non-resident deceased are usually outside the Portuguese charge — though the heir’s own country of residence may tax them under its own succession rules.

Things this tool does not cover

• Life insurance proceeds paid to a named beneficiary (typically exempt from stamp duty in Portugal)
• Business property relief or agricultural land reliefs (which may reduce the taxable value)
• Double-tax treaty effects for cross-border estates
• Assets held in trusts or foreign structures

For estates involving foreign assets, trusts, or business interests, confirm with a Portuguese solicitor (notário) or tax adviser. Every figure is computed in your browser — nothing about the estate is uploaded or stored.

Practical filing notes for heirs

Even exempt direct-line heirs are not paperwork-exempt: the death and the asset transfer must still be declared to the Portuguese tax authority (Autoridade Tributária) within the statutory window, using the stamp-duty participation form — the exemption is applied in the assessment, not by staying silent. Non-exempt heirs should also know that the 10% is charged on the taxable value of the assets, which for real estate is generally the higher of the deed value and the property’s official taxable value (VPT), not necessarily the market price. Cross-border heirs — for example a UK or French resident inheriting a Lisbon flat — face two systems at once: Portugal’s stamp duty on the Portuguese asset plus their home country’s succession rules, with relief depending on the home country’s unilateral credit rules (the EU’s overview of cross-border succession is a good starting point).

Sources

• Portal das Finanças — Portuguese Tax Authority — Imposto do Selo rules and forms
• European Commission — Taxation and Customs Union — cross-border inheritance taxation in the EU

Estimate only, not legal or tax advice. Valuation rules (VPT vs. market), reliefs, and declaration deadlines are fact-specific — confirm with a Portuguese notário or tax adviser. All math runs locally in your browser.