Portugal’s inheritance tax among EU lowest
Portugal is a tax heavy country, but not when it comes to inheritance and gifts, coming fourth from the bottom in a table of 22 Member States compiled by El Economista from data from the Tax Foundation.
The table compiled by the Spanish daily newspaper was based on a maximum ceiling of applicable taxes on the taxable value of patrimony and gifts.
Portugal is only bettered by Italy (8%), Bulgaria (6.6%) and Croatia where inheritance tax and gifts were the lowest. (4%)
Portugal abolished death duties for inheritors in 2004. Despite there not being a specific tax applicable on wills and gifts, monetary gifts of goods and property that are transferred in life or through wills after death are subject to a stamp tax of 10% with no exceptions.
In the case of inheritances, the legitimate heirs such as husband, wife and children are exempt from death duties. Aside from the relationship of the inheritor, the nature of the good(s) inherited may determine the exemption of this tax, as is the case with clothing or social security subsidies.
Regarding gifts these are also subject to a 10% tax in Portugal for amounts over €500 provided they are not gifted by children or siblings.
At the other extreme of the table in Spain (regions of Astúrias and Múrcia) have taxes of 87.6% on taxable patrimony while in Belgium it is 80%, France and Denmark also are at the top of the podium.
Image: Rhodi Lopez, Unsplash.