Selling an inheritance can involve paying thousands of euros in taxes, but Portuguese law provides solutions that allow you to reduce or even avoid this tax burden, as long as the right decisions are taken at the right time. Ignorance of these rules leads many heirs to pay more than necessary, especially when real estate is involved.
A report on the Contas-poupança portal draws attention to strategies provided for by law that allow you to save significant amounts, without resorting to illegal schemes or methods. At the heart of these solutions is how inheritance is handled before sale.
Selling the inheritance before sharing can avoid taxes
When an inheritance includes real estate and the objective is to sell, the order of the steps can be decisive from a tax point of view. In certain circumstances, it may be more advantageous to sell the entire hereditary share before carrying out the formal divisions.
By choosing to sell the inheritance as a whole, and not individual properties after sharing, the taxpayer can avoid paying IRS on real estate capital gains. This happens because, legally, there is still no individual ownership of assets, but only a right to global inheritance.
This solution is only valid if all the assets that make up the inheritance are sold, and not just an isolated property. Furthermore, it requires agreement between heirs and careful planning, as it is not always operational or suitable for all family contexts.
According to the same source, this is a completely legal option, but it must be analyzed on a case-by-case basis, taking into account the composition of the inheritance and the objectives of those who participate in it.
Purchase of hereditary shares and court decisions
There are also situations in which tax savings can reach high values when an heir buys out the remainder. Until the beginning of 2025, it was common practice for the Tax Authority to consider that the amounts received by the selling heirs were subject to IRS.
This interpretation was contradicted by decisions of the Supreme Administrative Court, which considered IRS taxation in these cases to be illegal. In practice, this means that many taxpayers paid tax unduly when selling their share of the inheritance to other heirs.
According to the same source, anyone who finds themselves in this situation can request a refund of the tax paid, as long as they do so within the legal deadline, which can cover the last four years.
Living donations as a complementary solution
In addition to solutions related to sales, there are mechanisms that allow you to avoid conflicts and simplify future processes. One of the options involves donating assets, such as real estate, to children or grandchildren during your lifetime.
In these cases, the tax payable amounts to 0.8% of the tax asset value contained in the property register, plus the normal deed and registration costs. Although this option does not, as a rule, represent significant immediate tax savings, it helps to clarify the ownership of assets and avoid family disputes after death.
Whoever receives the property assumes the associated obligations, such as paying IMI and any maintenance charges. Still, for many families, this solution avoids long and emotionally exhausting processes.
The limit is always the law
According to , the principle underlying all these solutions is simple: no taxpayer is obliged to follow the most fiscally burdensome path if the law provides for more economical alternatives. The limit is always respect for current legislation.
Before proceeding with sales, donations or sharing, it is advisable to seek support from a tax lawyer or an accountant with experience in inheritance law. Proper advice can avoid irreversible errors and allow savings that, in some cases, amount to tens of thousands of euros, always within the law.
Also read:
