Five things you should know about estate planning in Portugal
By International Adviser, 14 Feb 17
For British expats living in Portugal, or for those with Portuguese assets, the local equivalent of inheritance tax maybe relatively straightforward, says director of Blevins Franks Jason Porter, but succession law is very different. If advisers do not understand the rules, their client’s estate may not be distributed in line with their wishes or could attract more taxation than necessary.
Unlike the UK, where tax is generally paid before an inheritance or gift changes hands, in Portugal tax is paid by the person receiving it.
However, as in the UK, ownership of an asset cannot be transferred until the tax is paid – you cannot sell the asset to pay the tax. With stamp duty due within six months after death, some heirs may find it a difficult tax to pay, particularly on higher-value inheritances.
Remember, stamp duty is charged on Portugal-based assets, irrespective of residency, so this will affect any heirs in the UK not directly related to you.
Tags: Blevins Franks | Estate Planning | IHT | Portugal
