There is NO Inheritance Tax between immediate relatives (children / parents / spouses)
When living in Portugal, there are a number of different things that individuals must be aware of in regards to property tax. In general, inheritance in Portugal is determined by the nationality of the deceased person, so if someone was living in Portugal but was from another country, the laws of that person’s original country would be the determining factor. If this person was married to an individual from a different country, however, the laws of Portugal would becoming the deciding factor, as the goal is to be as consistent as possible. If there is any sort of court decision to be made regarding inheritance, it will usually take between one and two years to decide, depending on how many factors are involved. In the end, there is no inheritance tax in Portugal, but there are a number of other things that must be considered in this situation.
The basic laws in Portugal were implemented to protect the rights of spouses and descendants, as a minimum of 50% of the entire amount goes to these people. There are a number of different factors that are included in this, as the number of children that are present and whether or not the deceased spouse is alive will determine how much of the total estate is reserved. This information is important because it helps determine the taxes that will be paid as well. This is because property is part of the estate and, therefore, it must be accounted for.
Most people in Portugal are encouraged to make a will, as this will determine where the rest of their assets go. A will goes beyond direct family, as it makes it possible for individuals to leave assets behind for friends or family members who would not normally be considered. In addition, standard beneficiaries can be excluded from the will, such as an estranged spouse or child who has not had contact with the deceased for quite some time.
Once the decision has been made on who will end up with these assets, the process begins, as there are a number of different things that must be included in this portion of the process. For example, it is possible for a property owner to donate property to other individuals during his or her lifetime, although this donation is usually subject to taxes. The owner should also ensure that the reserved portion of the estate is taken into account, as there is a certain amount that must go to children and a spouse unless it is otherwise stated in a will. It is up to the property owner to leave enough property to cover taxes upon being sold, as the deceased assets should be enough to cover these fees.
The value of an estate is meant to include these deductions, so the value ends up being the actual value of all assets minus expenses relating to the estate minus estate debts. What this all means is that those who inherit property will not be subject to paying these fees because the money will come out of the value of the estate. While this method works out on paper, there are situations where significant prior debts can serious cut into the value of an estate and make it so those who are supposed to be inheriting money will end up having to pay. There is a law to protect people from this situation; however, as some people are eligible to have the donated value reduced to ensure that it is less than the existing assets.
The property that is being considered here must be registered to the owner in order for all of this to work out. If the person has been living in the property for a lengthy period of time, but is not the official owner of the property, additional work will have to be done in this situation. If the individual has been living in the home for over 20 years, however, and there is no dispute from another party regarding the true owner of the home, the inhabitant will be considered the true owner and these laws will apply to that home.
With any type of legal documents, including what is being inherited, the guardian must act of behalf of any minor. This guardian must be either a direct relative or have been appointed by a relative in order for him for her to have any legal right in this situation. If no immediate family member can be located, an independent source must provide a guardian for the child in order for this process to continue.
Overall, these laws are in place to protect family members of the deceased, as they give these individuals a number of different rights that must be respected. For starters, family members are guaranteed a certain stake in the estate and this can only be overturned by the property owner’s will. In addition, there are special tax considerations that will ensure that these descendants do not have to pay more in debts than the property is worth. The fact that there is no inheritance tax in Portugal does not mean that there are no fees associated with this process, so anyone who is inheriting property should be aware of this. There are definitely measures in place, however, that will protect people who inherit or are gifted property, as these people should not be responsible for paying more in administrative fees than the property is actually worth.