UK Inheritance tax (IHT) works very differently to its Portuguese equivalent which is called ST (Stamp Duty or Imposto do Selo) and is due either on death or if a gratuitous gift is made. There is no net wealth tax in Portugal.
There are Exemptions to Portuguese ST Tax including assets passed to or gifted to a spouse and any descendants or ascendants except gifts of property for which there is a 0.8% tax rate.
ST tax is levied at a fixed rate of 10% and if property is involved then 0.8%.
In terms of Succession, planning the main factor to consider is the nationality of the deceased although Portugal does operate a forced heirship regime also where:
The following relatives are entitled to receive the minimum statutory quotas:
Relatives* |
Minimum statutory quotas |
---|---|
One child and no spouse |
One-half of the inheritance goods and assets |
Two or more children and no spouse |
A total of two-thirds of the inheritance goods and assets |
One or more ancestors (parents, no spouse and no children) |
One-half of the inheritance goods and assets |
Surviving spouse |
One-half of the inheritance goods and assets |
Surviving spouse and a child |
One-third of the inheritance goods and assets to each |
Surviving spouse and two or more children |
Two-thirds of the inheritance goods and assets |
Surviving spouse with no children and ancestors |
Two-thirds of the inheritance goods and assets |
* For the purposes of this law, “relatives” are defined to include children, parents, siblings, grandparents, grandchildren or corresponding in-law or “step” relation.