When a Portuguese resident makes a gift to someone living abroad, a common question arises: does Portugal charge Stamp Duty because the donor is resident? In this episode, we clarify when Stamp Duty applies—and who is liable under Portuguese law.

🔎 What You’ll Learn in This Episode:

Under Articles 1(1) and 2 of the Código do Imposto do Selo, Stamp Duty is due only if the gifted asset is located in Portugal.

➡️ Portugal’s system focuses on where the asset is, not on where the donor or recipient lives.

Where Stamp Duty applies because the asset is located in Portugal:

• The recipient (donee) is the person liable for the tax

• The Portuguese-resident donor is not taxed

This allocation of liability is consistent across gratuitous transfers.

If the gifted asset is located outside Portugal:

• The gift falls outside the Portuguese Stamp Duty system

• No Stamp Duty is due, even though the donor is Portuguese resident

For gifts from Portuguese residents to non-residents:

• Portuguese-situs asset → Stamp Duty may apply (recipient pays)

• Foreign-situs asset → No Portuguese Stamp Duty

Correctly identifying the location of the asset is therefore essential.

This episode explains why asset location—not tax residence—drives Stamp Duty on gifts in Portugal, helping donors and recipients avoid incorrect assumptions and filings.

Gifts involving non-residents often raise a key question: does Portugal tax the gift because the recipient lives there? In this episode, we clarify when Portuguese Stamp Duty applies to gifts from non-residents—and when it does not.

🔎 What You’ll Learn in This Episode:

Under Articles 1(1) and 4(3) of the Código do Imposto do Selo, Portuguese Stamp Duty applies only if the gifted asset is located in Portugal.

➡️ The location of the asset, not the residence of the donor or recipient, is the primary connecting factor.

If the gifted asset is located outside Portugal:

• The gift falls entirely outside the Portuguese Stamp Duty system

• No Stamp Duty applies, even if the recipient is a Portuguese tax resident

This often surprises taxpayers who assume residency alone triggers taxation.

Although Portuguese tax residence is relevant in many areas of taxation, for gifts the system is largely territorial.

As a result:

• Foreign assets gifted to Portuguese residents are generally not subject to Stamp Duty

• Portuguese-situs assets gifted by non-residents are taxable (subject to exemptions)

For gifts from non-residents:

• Asset in Portugal → Stamp Duty may apply

• Asset outside Portugal → No Stamp Duty, regardless of the recipient’s residence

Correctly identifying where the asset is legally located is therefore essential.

This episode helps listeners understand why asset location matters more than tax residence when analysing gift taxation in Portugal—avoiding both over-reporting and missed obligations.

Family gifts in Portugal are often tax-free—but are they always reportable? In this episode, we explain the important clarification introduced by Portugal’s 2024 State Budget, which refined when family gifts must be declared for Stamp Duty purposes.

🔎 What You’ll Learn in This Episode:

A recent amendment to Article 1(5)(g) of the Código do Imposto do Selo, introduced by the State Budget Law for 2024, clarified the reporting obligations for family gifts.

For monetary gifts of up to EUR 5,000 made between close family members:

• The gift remains fully exempt from Stamp Duty

• No declaration is required

• There is no filing obligation for Stamp Duty purposes

This change significantly reduces administrative burden for small family transfers.

Where a monetary family gift exceeds EUR 5,000:

• The gift is still exempt from Stamp Duty

• But it must be declared using Modelo 1

Importantly, this is a purely administrative obligation, not a tax charge.

Failing to declare reportable gifts can lead to:

• Administrative penalties

• Questions during audits or future transactions

• Delays in banking or estate matters

Understanding the threshold helps families remain compliant while avoiding unnecessary filings.

In Portugal:

• ≤ €5,000 (family gift): no tax, no reporting

• > €5,000 (family gift): no tax, but reporting required

This episode explains how Portugal balances generous family-gift exemptions with proportionate reporting rules—and why the 2024 update is a welcome simplification for everyday family support.

Portugal’s approach to family gifts is often misunderstood. In this episode, we explain when gifts between family members are completely tax-free—and why the value of the gift usually does not matter.

🔎 What You’ll Learn in This Episode:

In Portugal, gifts made between close family members are exempt from Stamp Duty (Imposto do Selo).

This exemption is provided under Article 6(e) of the Código do Imposto do Selo.

The exemption applies to gratuitous transfers between:

• Spouses

• De facto partners

• Parents and children

• Grandparents and grandchildren

A key feature of the Portuguese system is that this exemption applies regardless of the value of the gift.

➡️ Whether the gift is modest or substantial, no Stamp Duty is due when the parties fall within the qualifying family relationships.

Although no tax is payable:

• Certain gifts may still need to be reported

• Proper documentation and formalisation may be required, particularly for high-value assets or real estate

For close family gifts in Portugal:

• No Stamp Duty applies

• No upper limit on value

• Correct documentation remains essential

This episode clarifies one of the most generous aspects of Portugal’s gift tax framework—helping families transfer wealth confidently and compliantly.

When making or receiving a gift in Portugal, a common question is who actually pays the tax. In this episode, we explain how Portuguese law allocates the tax burden—and why donors still play a practical role even when they are not the taxpayer.

🔎 What You’ll Learn in This Episode:

In Portugal, the recipient (beneficiary) of a gift is generally the person subject to taxation.

This follows directly from Articles 1(1) and 2 of the Código do Imposto do Selo, which place Stamp Duty liability on the beneficiary of a gratuitous transfer.

Although the donor is not taxed, they may still be required to:

• Provide supporting documentation

• Participate in notarial formalities

• Assist with proof of the transfer, valuation, or source of funds

Deficiencies at this stage can delay filings or create issues for the recipient.

Understanding who is taxed helps avoid:

• Incorrect filings in the donor’s name

• Missed reporting by the recipient

• Confusion when comparing Portugal with countries that tax the donor

For gifts in Portugal:

• Recipient = taxpayer

• Donor = supporting role (documentation and formalisation)

Both sides must coordinate to ensure the gift is properly documented and compliant.

This episode offers a straightforward explanation of how Portugal taxes gifts—helping donors and recipients understand their respective roles and obligations.

Portugal is often described as having “no gift tax”—but that statement needs context. In this episode, we explain how gifts are actually taxed in Portugal, why the system is different from many other countries, and what that means in practice for donors and recipients.

🔎 What You’ll Learn in This Episode:

Portugal does not impose a separate gift tax in the traditional sense. There is no distinct tax code or schedule labelled “gift tax,” unlike in many other jurisdictions.

Instead, gifts fall under Stamp Duty (Imposto do Selo), which applies to specific acts and transactions expressly listed in law.

Under Article 1(1) of the Código do Imposto do Selo, gratuitous transfers (including gifts) are treated as taxable transactions.

Because of this structure:

• Gifts are taxed as events or transactions, not as a separate category of wealth transfer

• The applicable rules depend on the type of transfer, the relationship between the parties, and the asset involved

• Many family transfers benefit from exemptions, even though reporting obligations may still apply

Understanding that Portugal taxes gifts through stamp duty—rather than a standalone gift tax—helps avoid:

• Incorrect assumptions based on foreign systems

• Missed filings

• Misinterpretation of exemptions and rates

🎯 Key Takeaway

Portugal does not have a traditional gift tax, but gifts are still within the tax system—classified as taxable acts under Stamp Duty rather than as a separate tax category.

Spanish Inheritance and Gift Tax (ISD) is heavily influenced by regional tax benefits, but for years those benefits were largely denied to non-residents. In this episode, we explain when and why non-residents can now access regional ISD reductions—and where the limits remain.

🔎 What You’ll Learn in This Episode:

Non-residents may benefit from regional ISD reductions where there is a sufficient EU or EEA connection.

This principle arises from a landmark decision of the Court of Justice of the European Union in Case C-127/12, European Commission v Spain.

The Court held that Spain’s practice of denying regional inheritance and gift tax benefits to EU and EEA non-residents breached EU law, particularly the free movement of capital.

As a result of the ruling:

• Spain was required to extend regional ISD reductions and allowances to EU and EEA non-residents

• Non-resident recipients can, in certain circumstances, be taxed under regional rules rather than the less favourable state-level regime

This applies to both inheritances and gifts.

Non-residents may access regional benefits where:

• There is a qualifying EU or EEA connection

• The relevant Spanish region can be identified under the applicable connecting factors

• Procedural and documentation requirements are met

This can significantly reduce the effective tax burden compared to the default non-resident rules.

• The benefit does not automatically apply to all non-residents

• It generally does not extend to non-EU/EEA residents

• Correct structuring, filing, and evidence are critical to claiming regional relief

While Spanish ISD is formally a national tax, EU law has reshaped its application.

For EU and EEA non-residents, regional tax benefits are no longer out of reach—but they must be actively claimed and carefully supported.

This episode explains how EU law continues to influence Spanish inheritance and gift taxation—and why non-residents should not assume the worst-case tax position without proper analysis.

What happens when neither the donor nor the recipient is resident in Spain—but the gifted asset is located there? In this episode, we explain when Spanish Gift and Inheritance Tax (ISD) applies and who must comply.

🔎 What You’ll Learn in This Episode:

Even where both parties are non-residents, Spanish ISD applies if the gifted asset or right is located in Spain.

This follows directly from Article 3 of Ley 29/1987.

➡️ Asset location—not residency—drives Spain’s taxing right in this scenario.

When Spanish ISD applies in these cases:

• The non-resident recipient (donee) is the taxpayer

• The donor is not taxed by Spain

The non-resident recipient must:

• File Modelo 651

• Pay any Spanish gift tax due

in accordance with the procedural rules administered by the Agencia Tributaria.

For gifts where both donor and donee are non-residents:

• Spanish-situs assets → ISD applies

• Recipient files and pays (Modelo 651)

• Donor has no Spanish gift tax liability

Understanding this rule helps avoid missed filings and clarifies responsibility in cross-border gifts involving Spain.