Inheritance Tax
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.