Notaries call for taxes on house sales from inheritances to be scrapped

The President of Portugal ’s Association of Notaries, Jorge Batista Da Silva, has called for taxes on the sale of houses that are inherited to be abolished.

Inheritance tax itself was abolished in Portugal in 2004. Since then, the government has charged stamp duty at a flat rate of 10% on the value of inherited assets located within the country – but the onward sale of an inherited property is subject to property taxes such as IMI transfer tax and stamp duty.

The sale of an inherited property or an inherited estate that includes properties should have “the same treatment as a tax bill” since “very similar realities are involved”, argues the Notaries’ Association which in the face of the imbroglio that recently arose because of the recent agreement of the Supreme Administrative Court (STA) on the sale of parts of an inheritance, proposes the creation of a tax benefit that will exempt both cases from the payment of IRS on assets.

In addition to ensuring equability, it would be a way of unblocking inventory processes that have built up as well as also bringing more properties onto the housing market, says the association’s president, Jorge Batista da Silva.

The measure is part of a number of proposals which the association has drawn up and will present as part of the debate one the State Budget for 2026 which the government will hand to parliament in a few weeks time.

And based on the cases they receive on a weekly basis, the notaries’ association also proposes changes to the IMT Jovem (a tax-exemption sweetener aimed at young people aged 35 or under, exempting them for paying property transfer tax), and changes to rules regarding tax transparency.

The president of the association calls for making the measures on the sale of landed estates by will beneficiaries more efficient adding that the sale of estates hold risks for these beneficiaries.

Instead, he suggests tax on inheritors should only be applied on properties sold for housing or converted to that end.

“We’re proposing a positive incentive a part from those who cannot sell their share, or if the buyer refuses this model.”

In effect, the sale of a hereditary share of an inheritance that has one or more properties is a form of not bearing the payment of capital gains and may not always be an easy operation.

If the acquirer has to get a bank loan, the bank is not always in agreement with the arrangement since it could involve an added risk – for example because the share could also include debts,” says Jorge Batista da Silva.

Image: Pexels; Author: Kylarose.