Inheritance tax in Portugal for non-residents 2026

An overview of inheritance tax in Portugal

Understanding inheritance tax in Portugal can be challenging, particularly for UK nationals who are inheriting assets from Portugal or planning to leave Portuguese-based wealth to family members. The laws differ from those in the UK and can have a direct impact on how much tax beneficiaries may need to pay.

This article highlights the key points non-residents should know, including how Portuguese inheritance tax works, what stamp duty applies and factors that influence tax liability. Because tax legislation in Portugal can change and personal circumstances vary, professional advice is strongly recommended to ensure your decisions are well-informed.

When it comes to managing your finances, Lumon is here to help. We’ve helped thousands of UK clients send money overseas safely and manage exchange rates when receiving or transferring inheritance funds between Portugal and the UK.

Understanding inheritance tax in Portugal

Inheritance tax in Portugal, applies to assets such as property, savings, investments, pensions and personal possessions passed on after someone’s death. While many countries have inheritance tax systems, the rules, rates and exemptions can vary widely.

Portugal does not have a traditional inheritance tax. Instead, it applies a stamp duty known as Imposto do Selo on assets located in the country, charged at a flat rate with no regional differences.

Portuguese inheritance laws also include forced heirship, which mandates that a portion of an estate is reserved for close family members, including spouses and children, regardless of the will. However, non-residents can choose for their estate to be governed by the succession laws of their home country, which may help avoid forced heirship requirements.¹

Who needs to pay Portuguese inheritance tax?

According to Portuguese inheritance laws, the deceased’s estate is taxed in line with the laws of the country where they are permanently resident. Therefore, if they live in Portugal permanently, beneficiaries may need to pay inheritance tax in Portugal in the form of stamp duty on assets inherited in the country, even if they themselves live elsewhere, including the UK.¹

Inheritance rules differ between countries, making professional advice essential to understand which regulations apply to you, particularly if you reside in or own property across multiple countries.

What is the inheritance tax rate in Portugal?

Inheritance tax in Portugal was abolished in 2004. Since then, the government has applied a flat-rate stamp duty of 10% on the value of assets inherited within the country.

In contrast, countries like Spain and France use traditional inheritance tax systems with progressive rates that depend on the estate’s value and the beneficiary’s relationship to the deceased. In the UK, a flat-rate inheritance tax applies to estates above a specific threshold.

What’s taxable and what’s exempt?

Assets subject to Portuguese stamp duty

Only assets located in Portugal are subject to Portuguese stamp duty. These include:

• Real estate: Residential and commercial properties
• Movable assets: Cars, motorcycles, boats, artworks and personal belongings
• Bank accounts: Savings and checking accounts held in Portuguese banks
• Business interests: Ownership stakes in companies operating in Portugal
• Intellectual property: Rights such as copyrights and patents

Exemptions from Portuguese Stamp Duty

Your inherited assets located in Portugal will only be exempt from stamp duty if you are a close relative of the deceased. Exemptions apply if you are:

• A descendant (Child or grandchild)
• A spouse or life partner
• An ascendant (Parent or grandparent)¹

Calculating your Portuguese inheritance tax liability

Here are three steps to help you understand how stamp duty might be calculated:

1. Subtract the liabilities (debts) from the value of the taxable assets. The taxable value is the market value of the assets at the time of the owner’s death or the value registered for tax purposes.
2. The resulting taxable net asset is distributed between the beneficiaries according to Portuguese inheritance laws and the deceased’s will.
3. The 10% stamp duty rate is applied to the amount of inheritance each eligible beneficiary receives.

Paying your inheritance tax in Portugal

Each beneficiary or their representatives must submit a declaration to the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira) within three months of your death. This should outline all assets located in Portugal that are part of the inheritance.

Along with the declaration, each beneficiary must provide:

• Death certificate
• A comprehensive list of the deceased’s assets in Portugal
• Civil identification document and tax identification number of the deceased
• Civil identification document and tax identification number of the beneficiaries
• Will or deed of gift or justification.¹

The Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira) will assess the stamp duty based on the declared assets. Payment is due within the same three-month period. Failure to do so may result in penalties.

Lumon: providing peace of mind for you and your loved ones

Receiving an overseas inheritance can feel overwhelming. At Lumon, we’re here to make transferring your funds as straightforward as possible, allowing you to focus on what matters most, whether you’re receiving or sending money abroad.

Our service is designed around your needs, with a tailored approach, competitive exchange rates and guidance that helps you navigate inheritance tax in Portugal when your transfer involves Portuguese assets.

• Online account (e-wallet): Hold your funds in the currency in which you receive the inheritance, giving you the flexibility to convert when the timing feels right.
• Dedicated account manager: A personal specialist who gets to know your circumstances and helps you plan a currency approach that aligns with your needs.
• Forward contracts: Lock in an exchange rate ahead of time—such as before the inheritance is released or as part of a property sale connected to the estate—so you know exactly what your funds will be worth when you’re ready to move them.
• Lumon EU bank accounts: This facilitates the direct receipt of funds from foreign solicitors. Lumon can receive your foreign currency inheritance without you needing to hold a bank account in that country or currency.

FAQs about Portuguese inheritance tax

What is the inheritance system in Portugal?

Portugal charges a stamp duty (Imposto do Selo) at a flat rate of 10% on the value of inherited assets located within Portugal. However, certain close relatives such as spouses, children, grandchildren, parents and grandparents are exempt.

Which European countries do not inheritance tax?

The following European countries don’t charge inheritance tax:

• Austria
• Cyprus
• Czech Republic
• Estonia
• Liechtenstein
• Malta
• Norway
• Romania
• Slovakia
• Sweden
  

Sources used: 

1. GOV.PT – Tax liability on the transfer of property through inheritance

Sources last checked on date: 15/01/2026

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.