Does Portugal have a classic inheritance tax?

Portugal abolished its progressive inheritance and gift tax in 2004. What remains is Imposto do Selo (stamp duty) charged at a flat 10% on gratuitous transfers of assets located in Portugal, so it functions as a light inheritance tax for some heirs but not all.

Who is exempt from Portuguese inheritance stamp duty?

Direct-line family members are fully exempt: spouses and de facto partners, children, grandchildren, parents and grandparents pay 0% on inheritances and gifts. The 10% rate only applies to siblings, cousins, friends and unrelated beneficiaries.

What rate applies to non-exempt heirs?

Non-direct heirs pay a flat 10% Imposto do Selo on the value of Portuguese-situated assets they inherit. Real estate transfers can attract an extra 0.8% stamp duty on the property value on top of the 10%.

Is foreign property taxed by Portugal?

Stamp duty generally applies only to assets situated in Portugal. 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. This tool models Portuguese-situated assets.

Are life insurance payouts taxed?

Life insurance proceeds paid to a named beneficiary are typically excluded from the inheritance stamp duty in Portugal. This calculator covers the general 10% / exempt split and should not replace advice from a Portuguese solicitor for complex estates.

Portugal Inheritance Tax Calculator

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The Portugal Inheritance Tax Calculator estimates the duty owed when assets pass on death or as a lifetime gift in Portugal. Unlike many countries, Portugal does not levy a traditional progressive inheritance tax — it was abolished in 2004. Instead a flat Imposto do Selo (stamp duty) of 10% applies to gratuitous transfers of Portuguese-situated assets, but with a wide family exemption that removes most close relatives from the charge entirely.

How it works

The rule is simple but the exemption matters more than the rate. The tool applies this logic:

Direct-line heirs — spouse or registered de facto partner, children, grandchildren, parents and grandparents — are fully exempt: the duty is 0.
All other heirs — siblings, nephews, cousins, friends, unrelated beneficiaries — pay a flat 10% of the inheritance value: duty = value x 0.10.

If the inheritance includes Portuguese real estate, an additional 0.8% property stamp duty can apply on the property’s value, which the tool adds when you flag the asset as property.

Duty = exempt ? 0 : value x 10% (+ 0.8% on any real-estate component).

Worked example

A Portuguese resident leaves €200,000 to their child and €200,000 to a sibling.

The child is a direct heir → €0 duty, receives the full €200,000.
The sibling is non-direct → 200,000 x 10% = €20,000 duty, nets €180,000.

Change the value or relationship and the duty, effective rate and net amount update instantly. Every figure is computed in your browser — nothing about the estate is uploaded or stored. For estates with foreign assets, trusts or business relief, confirm with a Portuguese tax adviser.