IMPOSTO DE SELO

 

 

What is Stamp Tax?

Stamp Tax is charged on a variety of deeds, contracts, documents, titles and financial operations. It is also due for donations and inheritances, which occur between individuals 5who are not spouses, ascendants or descendants.

 

Which situations are subject to Stamp Tax?

The following situations, amongst others, are subject to Stamp Tax:

- Purchase of residential or commercial property, as well as the acquisition of any rights on properties;
- Renting or sub-renting any property;
- Receiving an inheritance from an uncle, cousin, friend or any other person;
- Receiving a donation with value superior to 500€ from an uncle, cousin, friend or any other person;
- Any kind of contract with utility companies, such as water, electricity or telephone;
- Any bank loan (such as a mortgage loan);
- Payment of interests on loans or other credits;
- Any insurance subscription;
- Any given guarantee, such as collateral, endorsement;
- Any Notary act, such as deeds of sale, wills, among others;

 

Who pays the Stamp Tax?

The tax will be paid by the entity that has an economical interest in the deed or contract, for example:

- In property purchases, the purchaser (the tax will be levied by the Notary and included in his/her charges);
- In donations and inheritances, the recipient/heir;
- In letting contracts, the landlord;
- In finance contracts, the lender (which will usually reflect this cost to the borrower).

Note that there is neither gift tax nor inheritance tax in Portugal on assets transferred between spouses, to children, grandchildren and grandparents.

 

IVA - VALUE ADDED TAX

 

Please note that IVA is not deductible in property investment or construction (unless the purchaser is an IVA registered entity and requests to the Portuguese Revenue to deduct IVA. In such situation, IVA will be charged on the sale/resale of the property).

Mainly services related with food and beverage, table wines, take away meals, certain transformed food products, oil, gasoil, and heating fuel (all coloured and marked), fuel oil and its mixtures.

Some essential food products, soft drinks, books, magazines and newspapers, medicines, water, electricity, natural gas, passengers transport, hotels and similar lodging facilities, shows and sport events, specific construction works, River Tagus bridges tolls in Lisbon and agricultural production goods.

 

 



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