Not all donations made to family members need to be declared to Finance, but the idea of a universal maximum amount is misleading. According to the Finance Portal and the Stamp Tax Code, donations, depending on social uses, up to 500 euros, goods for personal or domestic use and, up to 5,000 euros, donations between spouses or civil partners, descendants and ascendants are not subject to tax.
In practice, this means that a donation may be outside the IOF in certain cases, but the obligation to participate in Finance does not depend solely on the value. It also depends on the type of good and the relationship between the giver and the receiver. 
Who is exempt from paying tax
It clarifies that the spouse or partner, as well as descendants and ascendants in a direct line, such as children, parents, grandparents and grandchildren, are exempt from paying IOF on the donation. The same rule results from article 6 of the Stamp Duty Code.
Even so, there is an important exception: when the donation consists of the transfer of property rights over real estate, Stamp Tax continues to be due at the rate of 0.8% on the taxable asset value of the property, even when the transfer is made between direct family members. 
For other beneficiaries, the rule is different. In these cases, IOF must be paid at a rate of 10% on assets subject to taxation, with an additional 0.8% if the transfer of property rights over real estate is involved. 
Deadline to communicate the donation
When participation is mandatory, the beneficiary must deliver it by the end of the third month following the donation, in accordance with article 26 of the Stamp Tax Code. The Finance Portal indicates that the process can be done via e-balcão, at a Finance Service or at a Citizen’s Store. 
But here comes a detail that usually goes unnoticed. Article 28 of the same code distinguishes between types of goods and, in the case of donations of monetary values to exempt beneficiaries, the AT itself has already clarified, in binding information, that the beneficiary may be exempt from participation. In other words, in the case of money donated between exempt beneficiaries, the answer is not limited to a simple ceiling of R$5,000. 
The same Finance Portal also says that goods for personal or domestic use are also not subject to Stamp Tax. In real estate and other assets subject to registration, such as vehicles, the analysis changes and the declaratory obligation can be maintained, even when there is an exemption from the 10% tax. 
Therefore, before transferring money or handing over assets to a relative, it is worth confirming three elements: the value, the degree of kinship and the type of asset in question. In Portugal, the rules on donations are not based on a single number and the amount of 5,000 euros, although important, does not resolve all cases. 
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