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Vasco Soares da Veiga & Associados
12th December 2011

The Portuguese legal system is attractive to investors, both national and foreign, even compared to other European legal regimes. Portugal offers several tax and inheritance advantages, as well as in obtaining nationality, to which we refer, namely:


• No tax on fortune Unlike other countries like France, Spain or Switzerland, Portugal has no tax on fortune.

• Tax on succession and donations: The spouse, the de facto mate, the descendants and the living ancestors of the deceased / donator are exempted of this tax, with respect to what they have benefited. Except for these cases, the rate of the inheritance tax and the tax on gifts is of 10% of the assessable value.

• Law applicable to successions: When the deceased was a foreigner, although his/her estate is subject to the taxation referred in the previous point, the estate is distributed between the heirs and legatees in accordance to what is determined by the law of the nationality of the deceased.

• Exemption of tax on the profit made with the sale of assets inherited by non residents: The profit obtained with the sale of movable assets and shares inherited by non residents (individuals or companies) is not subject to income tax.

• Madeira Free Trade Zone – Special Regime : Until December 2013, foreign companies pay 4% or 5% on the assessable income produced by industrial and commercial activities, maritime transportation and other services.

• Special Regime for Non-Habitual Residents: Foreigners who reside in Portugal for more than 183 days, or those who do not, but have an habitation on the 31st December, can apply for tax qualification as non-habitual residents, and benefit of a more beneficial tax regime in connection to income produced by high value added activities.

• Naturalisation: Foreigners who reside in Portugal can apply for Portuguese citizenship after six years of permanent residency. Dual citizenship or more is permitted by Portuguese law, but when in Portugal one cannot claim any other nationality but Portuguese.

• Tax planning for the purchase and sale of real estate owned by companies: In these cases, the Portuguese legal system offers several advantages connected to the tax due on the conveyance and to the taxation of the profit made with the sale of real estate owned by companies. This is a general information and in order to be correctly applied you should consult our office.