Which situations are exempt or not subject to Stamp Tax?

 

These are some examples of situations exempt or not subject to Stamp Tax:

- Interest on mortgages loans granted for purchase, reconstruction or improvement of residential properties;
- Transfer of your mortgage from one financial institution to another (any increase in the capital will result in the payment of Stamp Tax)
- Gifts and donations, in money or goods (charity), which does not exceed 500€.

 

How will I be taxed on donation or inheritance?

The acquisition of assets by donation or inheritance is subject to Stamp Tax, at a 10% rate. This rate is applicable on the market value of the assets or on the VPT ( Property Rateable Value) for real estate assets.

However, the donations between spouses, descendents or ascendants, as well as inheritances transmitted between 6these persons, are not subject to the 10% rate.

 

What are the applicable rates?

The Imposto de Selo is levied on the value of each taxable deed or operation at a tax rate, which varies according to the type of deed or contract, as exemplified below.

Whenever more than one Imposto de Selo is applicable to the same act, only the highest is levied (with exception of property acquisitions, donations and inheritances).

The donation of properties to spouse, descendant or ascendant is subject to Stamp Tax at a lower rate of 0,8%. Taking this information into account, the only situation where there will be no Stamp Tax whatsoever is when the property is inherited by the spouse, descendant or ascendant of the deceased.

 

How and when should I declare and pay the due Imposto de Selo?

In every deed or contract where an official entity or company intervenes, the Imposto de Selo is charged and delivered to the Revenue by them. However, in any operation or contract made between individuals, who are subject to Imposto de Selo, the tax can be paid in any tax office through a proper form.

Regarding donations and inheritances, the Imposto de Selo is assessed by the tax authorities that will notify the beneficiary, or his fiscal representative, to pay the Tax. This notification will be sent following declaration filed by the beneficiary.

The beneficiary has until the end of the 3rd month from the date of transmission of the asset, to declare to the tax authorities that a donation or inheritance has been received, stating the value, and filing a proper document where the following must be mentioned:

- Who made the donation or left the inheritance;
- The date and place where it occurred;
- Who received the donation or inheritance;
- Indication of the kinship;
- Description of the assets donated or inherited and their respective value.

 



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