Selling an inheritance part, a property from an undivided inheritance estate or an inherited asset that has already been distributed can have very different tax consequences. In some cases, the capital gain is not taxed; in others, the Portuguese Tax Authority (AT) continues to assess and collect the IRS tax. The way the transaction is structured and documented can make all the difference.

In 2025, the Supreme Administrative Court (STA) ruled out the taxation of capital gains arising from the sale of inheritance parts. However, the sale of properties from undivided inheritance estates, as well as the distribution of estates involving compensation payments (tornas), continue to give rise to disagreement between the AT and the tax and arbitral courts, in case law that tends to develop in favour of taxpayers.

In this article by Igor Santos, we explain how the AT distinguishes these transactions, what the courts have decided, the importance of planning the sale before signing the contract, and what means are available to challenge IRS tax already assessed and claim a refund with interest.

To access the full article, please download the PDF below. For further information, contact us at geral@ammoura.pt.