Gift tax in Portugal: how much do you pay to gift money or a home?

How much does it cost to make a gift?

In Portugal, gifting an asset (money, shares, a car, a home) is a gratuitous transfer and is subject to Stamp Duty (Imposto do Selo)¹. The good news is that most gifts within the family pay nothing. The bad news is that, outside that circle, the bill can be heavy.

This article explains how much you pay, who is exempt and the special case of real estate. You can estimate your own case in the gift Stamp Duty calculator.

The two items that may apply

Stamp Duty rates are set in the General Stamp Duty Table (TGIS). A gift can trigger two lines (called "items")¹:

1. Item 1.2, the gratuitous acquisition of assets: 10% on the gifted value. It applies to any asset, be it money, shares, a vehicle or real estate.
2. Item 1.1, but only when the asset is real estate: a further 0.8% on the taxable value (VPT). It is the same item you pay when buying a home.

A money gift can only trigger item 1.2. A gift of a home can add both.

Who is exempt from the 10%

The decisive point is who receives the gift. Article 6(e) of the Stamp Duty Code exempts from item 1.2 (the 10%)²:

• the spouse or de facto partner;
• descendants: children, grandchildren (and adoptees);
• ascendants: parents, grandparents.

So gifting money from parents to children pays no tax. A gift to a sibling, nephew, friend or to anyone outside that circle pays the 10% on the gifted value.

Even when it is exempt, a gift to family above €5,000 must be declared to the tax authority. The exemption removes the tax, not the reporting.

The special case of real estate: the 0.8% is always due

Here is the detail most people get wrong. The close-family exemption covers only the 10% of item 1.2. It does not cover item 1.1. So when gifting real estate¹:

• to a child (or other exempt family): pays only 0.8% on the VPT;
• to a non-family member: pays 10% + 0.8% = 10.8% on the VPT.

In other words, putting a home in a child’s name is not entirely free: there is always the 0.8% Stamp Duty on the transfer.

Worked examples

See how the tax changes with the value, the type of asset and who receives it:

• €50,000 in cash to a sibling: €50,000 × 10% = €5,000.
• €50,000 in cash to a child: €0 (exempt).
• Real estate with a VPT of €200,000 to a child: €200,000 × 0.8% = €1,600.
• Real estate with a VPT of €200,000 to a nephew: €200,000 × 10.8% = €21,600.

Run your own case in the gift Stamp Duty calculator.

Gift or inheritance?

A gift and an inheritance are both gratuitous transfers and follow the same item 1.2 (10%) with the same exemption for spouse, descendants and ascendants¹. The difference is the timing: a gift is made in life; an inheritance happens on death and has its own division rules. Gifting in life can be a way to organise an estate, but it is worth comparing the costs and effects of each path.

Mind the seller’s IRS later

Stamp Duty is paid by the person who receives the gift. But there may be a separate tax later: if the recipient eventually sells the gifted property, there can be IRS on the capital gain. That is a different tax, paid by the seller, and is calculated on the gain from the sale, see the property capital gains calculator. After receiving the home, the new owner also starts paying IMI every year.

If you are thinking of buying (rather than receiving) a property, Stamp Duty works differently, see what Stamp Duty is and the Stamp Duty calculator.