The acquisition of real estate is subject to a Stamp Duty of 0.8%, regardless of whether it involves a purchase/sale, donation or inheritance.
Real estate donations are also subject to Stamp Duty (10%). The final applicable rate is 10.8% against the property’s taxable assessed value (per the legal description).
The rate of only 0.8% applies to donations between spouses or de facto partners, and to descendants or ancestors. Donations between these family members are not subject to taxes.
Calculation of tax:
Taxable Assessed Value x Rate (10.8% or 0.8%)
The tax for the transfer of the property (0.8%) must be paid at the local tax office or tax authority website (Portal das Finanças) prior to the execution of the warranty deed or donation agreement.
The tax for donations (10%) is paid by the tax office, who then notifies the beneficiary of the donation to pay. The beneficiary of the inheritance must submit a notification of the Stamp Duty within three months of the donation.
The Stamp Duty must be paid within two months of the notification.
When the amount payable exceeds €1,000, it will be divided into a maximum of 10 instalments of equal value (at least €200 per instalment).
Taxpayers choosing to pay taxes exceeding €1,000 in full will be entitled to a discount of 0.5% per month against each separate tax instalment, excluding the first.