Offshore Tax with HTJ.tax

When inheriting property in Portugal, taxes are often a major concern—especially for international families. In this episode, we clarify how Stamp Duty (Imposto do Selo) applies to inherited property, who is exempt, and why compliance matters even when no tax is payable.🔎 In This Episode, You’ll Learn:1️⃣ The 10% Stamp Duty RulePortugal does not impose a traditional inheritance tax. Instead, inheritances fall under Imposto do Selo, generally charged at a flat rate of 10% on the value of assets transferred by inheritance.2️⃣ Who Is Usually ExemptThe following beneficiaries are typically exempt from paying the 10% Stamp Duty when inheriting property: • Spouses • Descendants (children, grandchildren) • Ascendants (parents, grandparents)While the tax may not apply, reporting obligations still remain and must be fulfilled.3️⃣ Who Is Subject to the TaxHeirs who are not direct family members—such as siblings, nieces, nephews, or unrelated beneficiaries—are commonly subject to the 10% Stamp Duty.4️⃣ Why Proper Reporting Is EssentialEven exempt heirs must: • Declare the inheritance • Comply with filing and documentation requirements • Ensure property registrations are correctly updatedFailure to do so can cause delays, penalties, or issues with future transactions.This episode provides a straightforward explanation of how Stamp Duty affects inherited property in Portugal—helping heirs and advisors avoid surprises and stay compliant.

Portugal is often described as facing a housing shortage—yet walk through many towns and cities and you’ll see countless empty homes. So what explains this apparent contradiction? In this episode, we unpack the structural, legal, and economic reasons behind Portugal’s high number of vacant properties.🔎 In This Episode, You’ll Learn:1️⃣ Inheritance and Legal BottlenecksA significant number of properties remain empty because they are tied up in: • Ongoing inheritance proceedings • Disputes between heirs • Delays in probate or property registrationUntil these issues are resolved, homes cannot be sold, rented, or occupied.2️⃣ Second Homes and Lifestyle PropertiesMany vacant properties are not abandoned at all—they are: • Second or holiday homes • Used seasonally rather than year-roundThese properties appear vacant in census data despite being privately owned and maintained.3️⃣ Investment and Short-Term AccommodationSome homes are: • Held purely for long-term investment • Registered for short-term accommodation and not occupied permanently • Awaiting market conditions or regulatory clarity before being brought into use4️⃣ Properties Requiring RefurbishmentOlder housing stock, particularly outside major cities, often requires significant renovation before it can be lived in—leaving many properties temporarily or permanently empty.5️⃣ What the Data ShowsNational census data confirms substantial vacancy levels, sparking ongoing public and policy debate around housing supply, taxation, and urban regeneration.This episode offers context and clarity to a widely discussed issue, helping listeners understand why vacancy in Portugal is often driven by structural and legal factors—not simply by neglect.

When international families own property or other assets in Portugal, one critical question often arises: Will a foreign will be recognised under Portuguese law? In this episode, we clarify how Portugal treats foreign wills—and why careful estate planning is essential to avoid unintended outcomes.🔎 In This Episode, You’ll Learn:1️⃣ What Types of Wills Portuguese Law RecognisesPortuguese law formally recognises public wills and closed wills, each with specific formal requirements.2️⃣ Are Foreign Wills Valid in Portugal?Foreign wills may be valid in relation to Portuguese assets, provided they meet applicable legal standards and do not conflict with mandatory Portuguese rules. However, recognition alone does not always guarantee a smooth succession process.3️⃣ Why a Portuguese Will Is Often RecommendedIn many cases, it is prudent to: • Prepare a Portuguese will limited to assets located in Portugal, or • Carefully coordinate dual wills (one Portuguese, one foreign)This approach can significantly reduce administrative delays and legal uncertainty.4️⃣ The Importance of Forced Heirship RulesPortugal has forced heirship provisions, which can override testamentary intentions expressed in foreign wills. Without proper coordination, these rules may lead to outcomes very different from what the testator intended.5️⃣ Key Takeaway for Cross-Border FamiliesInternational estate planning is not just about will validity—it’s about compatibility, coordination, and compliance across jurisdictions.This episode provides practical guidance for internationally mobile families and advisors navigating succession planning involving Portuguese assets.

Buying property in Portugal involves more than just the purchase price. In this episode, we walk through the key taxes and fees every buyer—local or foreign—should budget for when acquiring real estate in Portugal.Understanding these costs upfront helps avoid surprises and ensures smoother transactions.🔎 In This Episode, You’ll Learn:1️⃣ IMT – Property Transfer TaxThe main tax payable on acquisition is IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis). • IMT is calculated based on the type of property (urban, rural, residential, etc.) • The rate increases progressively depending on the property value • Different rules may apply for primary residence vs. investment property2️⃣ Stamp Duty on the PurchaseIn addition to IMT, buyers must pay Stamp Duty (Imposto do Selo) at a flat rate of 0.8% of the transaction value.3️⃣ Notarial and Registration FeesProperty transfers also involve: • Notary or deed formalisation costs • Land registry and property registration feesWhile smaller compared to taxes, these costs are mandatory and should be included in any purchase budget.4️⃣ Additional Costs When Using a MortgageIf the purchase is financed: • Additional Stamp Duty applies to the loan amount • The rate depends on the loan term and structureThis episode offers a practical overview of the real costs involved in buying Portuguese real estate—essential listening for anyone considering a purchase, whether for residence or investment.

Inheritance taxation is one of the most common—and misunderstood—questions when dealing with estates in Portugal. In this episode, we clarify how Portugal actually taxes inheritances and what families should expect when assets pass to the next generation.The answer may surprise many international families.🔎 In This Episode, You’ll Learn:1️⃣ Why Portugal Has No Traditional Inheritance TaxPortugal does not impose a conventional inheritance or estate tax like many other countries. There is no progressive inheritance tax regime applied to estates as a whole.2️⃣ The Role of Imposto do SeloInstead, inheritances are subject to Imposto do Selo (Stamp Duty) on gratuitous transfers, generally charged at a flat rate of 10%.3️⃣ Who Is Exempt — and Who Is Not• Exempt beneficiaries:– Spouses– Descendants (children, grandchildren)– Ascendants (parents, grandparents)• Potentially taxable beneficiaries:– Siblings– More distant relatives– Unrelated beneficiariesFor these recipients, the 10% Stamp Duty may apply depending on the asset and circumstances.4️⃣ Why This Matters for Estate PlanningUnderstanding how Portugal treats inheritances is essential for:• Cross-border estate planning• Property succession• Avoiding unexpected tax exposure for non-exempt heirsThis episode provides a straightforward explanation of Portugal’s inheritance tax framework—helping families, heirs, and advisors navigate succession with clarity and confidence.