Has anyone inherited a property in Portugal?

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** Best regards, José ***

@canadaportugalvisa22,

You may or may not be exempt from paying stamp duty (imposto de selo) on your inheritance. It depends on the type of heir you are. There's information on that here:

https://www.comparaja.pt/blog/imposto-sobre-heranca

Stamp duty is calculated by AT Finanças, according to a formula that is sent to you in a letter from AT Finanças. If you are exempt, the amount payable is zero. If you are not exempt, you will be given an ATM reference with he amount to pay. In both cases you will always receive a letter in your AT tax address. It can take between 1 and 3 months to receive the letter from the AT. This period of time counts after someone have submitted the stamp duty declaration to the AT tax office, which must be done by the head of the inheritance (if there are several heirs), together with the declaration of death (certidão de óbito) and notarized declaration of heirs (habilitação de herdeiros).

@jhomea,

This is your first post. As well as not answering the question posed, you are advertising your real estate services here, which is, shall we say, out of context and unauthorised. Please read the forum conduct rules.

https://www.expat.com/forum/viewtopic.php?id=224229

    @canadaportugalvisa22,
You may or may not be exempt from paying stamp duty (imposto de selo) on your inheritance. It depends on the type of heir you are. There's information on that here:

https://www.comparaja.pt/blog/imposto-sobre-heranca

Stamp duty is calculated by AT Finanças, according to a formula that is sent to you in a letter from AT Finanças. If you are exempt, the amount payable is zero. If you are not exempt, you will be given an ATM reference with he amount to pay. In both cases you will always receive a letter in your AT tax address. It can take between 1 and 3 months to receive the letter from the AT. This period of time counts after someone have submitted the stamp duty declaration to the AT tax office, which must be done by the head of the inheritance (if there are several heirs), together with the declaration of death (certidão de óbito) and notarized declaration of heirs (habilitação de herdeiros).


@jhomea,
This is your first post. As well as not answering the question posed, you are advertising your real estate services here, which is, shall we say, out of context and unauthorised. Please read the forum conduct rules.
https://www.expat.com/forum/viewtopic.php?id=224229-@JohnnyPT

Thanks for the reply. The inheritance part has been completed many months ago. We did not have to pay any inheritance tax. But, now it is tax time and my accountant at home is saying that I need the "fair market value" of the property to set the initial acquisition cost. I've since learned that in Portugal the acquisition cost is based on the VPT which is significantly lower than the market value, so capital gains in the future will be very big.

@canadaportugalvisa22

Can't the market value can be obtained through asking for real estate agents to provide valuations. get a few valuations, select one.

@canadaportugalvisa22

In the case of inheritance, the acquisition value is the value shown on the property's land registry/caderneta predial do imóvel  (CIMI field - valor patrimonial actual,  at the bottom of 1st page), and the acquisition date is the date of death. As far as I understand with your post, what your accountant says is wrong...

I guess that you need this information for your IRS declaration in Annex G (mais valias / capital gains with properties), right?

https://www.economias.pt/venda-de-imove … dos-e-irs/

    @canadaportugalvisa22
In the case of inheritance, the acquisition value is the value shown on the property's land registry/caderneta predial do imóvel  (CIMI field - valor patrimonial actual,  at the bottom of 1st page), and the acquisition date is the date of death. As far as I understand with your post, what your accountant says is wrong...

I guess that you need this information for your IRS declaration in Annex G (mais valias / capital gains with properties), right?

https://www.economias.pt/venda-de-imove … dos-e-irs/-@JohnnyPT

The CIMI/VPT as you mentioned on the caderneta is the amount to be used to determine acquisition value for the IRS. In Canada, however, the "fair market value" is what is reported as the acquisition value. So, each country's tax laws operate quite differently.

I suppose what will happen in the future is there will be a capital gains bill from Portugal that will greatly dwarf anything that would have been owed to Canada, so it's just a matter of reporting the gain but the tax treaty and subsequent tax credit will reduce the liability to zero.

    @canadaportugalvisa22
Can't the market value can be obtained through asking for real estate agents to provide valuations. get a few valuations, select one.
   

    -@Mydeliveries

I wish it were done this way, but as noted above, the acquisition value for inheritances is determined by the assessed tax value as per the caderneta.