Inheritance Tax Brazil vs Portugal — 2026 Guide

Portugal effectively abolished inheritance tax in 2004. Close family members — spouses, descendants, and ascendants — pay zero tax on inherited assets. Brazil, by contrast, charges ITCMD at progressive rates up to 8% on every inheritance regardless of the heir’s relationship to the deceased. For the estimated 300,000+ Brazilians living in Portugal and the substantial Portuguese community in Brazil, this asymmetry creates both opportunities and traps. Understanding the interaction between Portugal’s Imposto do Selo and Brazil’s ITCMD is essential for anyone with family ties, assets, or residency in both countries.

How Do Inheritance Taxes Compare Between Brazil and Portugal?

How Does Portugal’s Imposto do Selo Work on Inheritances?

When Portugal reformed its tax system in 2003–2004 (Law 26/2003 and subsequent regulations), it abolished the Imposto sobre Sucessões e Doações (Inheritance and Gift Tax). In its place, gratuitous transfers were brought under the Código do Imposto do Selo (Stamp Duty Code).

Who Is Exempt?

“The Brazil-Portugal corridor is unique because Portugal essentially abolished inheritance tax for close family, while Brazil taxes every heir regardless of relationship. For dual-resident families, this asymmetry is either a planning opportunity or a trap — depending on domicile.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

Under Article 6(e) of the Código do Imposto do Selo, the following beneficiaries of gratuitous transfers (transmissões gratuitas) are exempt from stamp duty:

• Spouse or unido de facto (de facto partner with 2+ years cohabitation)
• Descendants (children, grandchildren)
• Ascendants (parents, grandparents)

This means that in the vast majority of inheritances — where assets pass to a spouse, children, or parents — no tax is owed in Portugal.

Who Pays 10%?

Beneficiaries who are NOT spouses, descendants, or ascendants pay 10% Imposto do Selo on the value of gratuitous transfers. This includes:

• Siblings
• Nieces and nephews
• Unrelated beneficiaries
• Charities (though certain charitable institutions may qualify for exemptions)

What Is the Tax Base?

For real estate, the tax base is the valor patrimonial tributário (VPT) — the official tax value registered with the Autoridade Tributária. The VPT is typically below market value, sometimes significantly so, particularly for older properties that haven’t been reassessed.

For financial assets, the tax base is generally the market value at the date of death.

Territorial Scope

Imposto do Selo applies only to assets located in Portugal — Portuguese real estate, Portuguese bank accounts, shares in Portuguese companies. It does not reach assets held abroad, even if the deceased was a Portuguese resident.

How Does Brazilian ITCMD Affect Portuguese Nationals?

Portuguese nationals living in Brazil are subject to the same ITCMD rules as any Brazilian resident:

1. Brazilian assets — ITCMD is owed to the state where real property is located or where the estate is processed, at progressive rates up to 8%.

2. Foreign assets — Under LC 227/2026, Portuguese nationals domiciled in Brazil who inherit assets from Portugal (or anywhere abroad) now owe ITCMD to their Brazilian state of domicile. Before this reform, the constitutionality of taxing foreign inheritances was disputed (STF RE 851.108).

3. No family exemption — Unlike Portugal, Brazilian ITCMD does not exempt close family members. A child inheriting from a parent in Brazil pays ITCMD at the same rates as any other heir.

For current rates in each Brazilian state, see our ITCMD rates by state guide.

Is There a Double Taxation Risk?

The Good News

Because Portugal does not tax close family on inheritances, and ITCMD only applies to Brazilian-situs assets (or foreign assets received by Brazilian domiciliaries), double taxation between the two countries is rare in practice:

• Portuguese parent dies, Portuguese child in Brazil inherits Portuguese assets: Portugal charges 0% Imposto do Selo (close family exemption). Brazil charges ITCMD on the foreign inheritance received by the Brazilian-domiciled heir (post-LC 227/2026).
• Brazilian parent dies, Portuguese child in Portugal inherits Brazilian assets: Brazil charges ITCMD on the Brazilian assets. Portugal charges 0% (close family exemption — even on assets received from abroad, since there is no Portuguese-situs property involved).
• Brazilian parent dies, unrelated Portuguese heir inherits Portuguese real estate: Portugal charges 10% Imposto do Selo. Brazil charges nothing (asset is not in Brazil and the heir is not a Brazilian domiciliary).

The Bad News

Double taxation can occur in narrow situations:

• An unrelated beneficiary inheriting Portuguese-situs assets while domiciled in Brazil could face 10% Imposto do Selo in Portugal AND ITCMD of up to 8% in Brazil (on the foreign inheritance under LC 227/2026).
• There is no tax treaty between Brazil and Portugal covering inheritance or gift taxes. Brazil and Portugal have a Convention for the Avoidance of Double Taxation (signed 2000, amended 2022), but like the UK convention, it covers income tax only.
• Brazil does not provide a statutory credit for Imposto do Selo paid in Portugal.

How Does Forced Heirship Compare?

Both Brazil and Portugal have forced heirship regimes — a reflection of their shared civil law tradition. This means neither country allows complete freedom of testation.

EU Succession Regulation (Brussels IV) — Key Difference

Portugal, as an EU member state, is bound by EU Regulation 650/2012 (Brussels IV), which allows a person to choose the law of their nationality to govern their succession. A Brazilian citizen residing in Portugal can choose Brazilian law to govern their estate — and vice versa in limited circumstances.

Brazil is not bound by Brussels IV. Brazilian courts apply the law of the deceased’s last domicile (LINDB Art. 10, §1), with a constitutional override favoring Brazilian heirs when the deceased was a foreigner (CF Art. 5, XXXI; STF precedent under Art. 10, §1 of LINDB).

For a comprehensive analysis, see our forced heirship guide.

What About Portugal’s NHR and Golden Visa Regimes?

Non-Habitual Resident (NHR) Regime

Portugal’s NHR regime (Decree-Law 249/2009, as amended) offered a 10-year period of favorable income tax treatment to new residents. The regime was effectively closed to new applicants from January 2024, replaced by a more limited incentive for scientific research and innovation. For existing NHR beneficiaries:

• NHR affects income tax only — it has no impact on Imposto do Selo or inheritance treatment
• NHR holders inheriting from a Portuguese-domiciled person follow standard Imposto do Selo rules (close family exempt, others at 10%)
• Brazilian ITCMD applies independently based on the heir’s Brazilian domicile and the asset’s location

Golden Visa

Portugal’s Golden Visa program (restructured in 2023 to exclude real estate investment) grants residency rights. For inheritance planning:

• Holding a Golden Visa establishes Portuguese residency but does not automatically create Portuguese domicile for all purposes
• Portuguese-situs assets acquired through Golden Visa investment are subject to Portuguese Imposto do Selo rules on death
• If the Golden Visa holder is also domiciled in Brazil, their Brazilian state may charge ITCMD on the Portuguese assets under LC 227/2026

How Should Brazilian-Portuguese Families Plan?

Scenario 1: Brazilian Living in Portugal

• Portuguese assets pass to close family tax-free in Portugal (Imposto do Selo exemption)
• If you retain Brazilian domicile or assets, ensure a coordinated Brazilian will covers those assets
• Consider whether Brussels IV election of Brazilian law is advantageous for succession planning
• Ensure compliance with DCBE/FBAR reporting if you also have US connections

Scenario 2: Portuguese Living in Brazil

• Brazilian assets are subject to ITCMD — no close-family exemption applies in Brazil
• Evaluate holding company structures to centralize real estate (noting LC 227/2026 anti-avoidance rules)
• Lifetime donations to children may lock in current ITCMD rates before states implement higher progressive rates post-2027
• Portuguese assets inherited from Portugal may now trigger ITCMD in Brazil under LC 227/2026

Scenario 3: Dual-National with Assets in Both Countries

• Make two coordinated wills — one in each jurisdiction — with clear asset allocation and non-revocation clauses
• Map forced heirship requirements under both systems (both require 50%+ to compulsory heirs, but calculation methods differ)
• Consider the community property regime implications — both countries default to community property, but the specific rules differ
• Review annually using our estate planning checklist

Gifting Strategy

Portugal’s exemption for close family extends to lifetime gifts. A parent in Portugal can gift property to a child with 0% Imposto do Selo. In Brazil, the same gift triggers ITCMD at progressive rates. This asymmetry makes Portugal-based gifting attractive for assets that can be legally relocated or held in Portugal.

However, if the child is a Brazilian domiciliary, receiving a gift from Portugal now triggers ITCMD under LC 227/2026. The tax advantage exists only when the recipient is not domiciled in Brazil.

Frequently Asked Questions

Do Brazilians in Portugal pay inheritance tax?

Not if they inherit from close family (spouse, parents, children, grandparents, grandchildren). Portugal’s Imposto do Selo exempts these beneficiaries entirely. If you inherit from a sibling, aunt, uncle, or unrelated person, you pay 10% on Portuguese-situs assets. If you remain domiciled in Brazil and inherit Portuguese assets, Brazil may charge ITCMD under LC 227/2026 — consult our estate planning team before assuming zero tax.

Is there a tax treaty between Brazil and Portugal for inheritance?

No. The Brazil-Portugal Double Taxation Convention (Convenção para Evitar a Dupla Tributação, signed 2000, amended 2022) covers income taxes only. There is no bilateral agreement covering inheritance tax, gift tax, or Imposto do Selo on gratuitous transfers. Each country taxes independently, and neither provides a statutory credit for the other’s inheritance-related taxes.

Which country’s forced heirship rules apply?

It depends on domicile and applicable law. In Portugal, under EU Regulation 650/2012, the default rule is the law of the deceased’s habitual residence — but the deceased can elect the law of their nationality. In Brazil, the law of the deceased’s last domicile governs (LINDB Art. 10), with a constitutional override favoring Brazilian heirs. If you hold dual nationality and live in one country with assets in both, professional coordination is essential. See our forced heirship guide.

Should I consolidate assets in Portugal to avoid ITCMD?

“I advise Brazilian-Portuguese families to start with domicile analysis — not asset relocation. Where you genuinely live determines which country’s rules dominate your estate plan, and moving assets without moving your life is a strategy the Receita Federal will challenge.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

Relocating assets to Portugal solely to avoid ITCMD is risky. If you remain domiciled in Brazil, LC 227/2026 reaches foreign inheritances — including Portuguese assets. Brazilian tax authorities may also challenge transactions lacking economic substance under general anti-avoidance doctrines. The strategy works only if you genuinely relocate your domicile to Portugal and your heirs are also non-Brazilian domiciliaries. For legitimate restructuring options, see our holding company and trust advisory services.

Why ZS Advogados?

The Brazilian-Portuguese corridor is one of the most active cross-border succession corridors in the world, connected by language, family ties, and Golden Visa investment flows. Zac Zagol and the ZS estate planning team serve clients on both sides — coordinating with Portuguese advogados on Imposto do Selo treatment, Brussels IV elections, and forced heirship compliance while managing ITCMD obligations in Brazil.

Book a consultation to review your cross-border position, or contact us for an initial assessment. For a full overview of our succession services, visit our estate planning hub.