Stamp Tax

Stamp tax

• 1. Tax Basis

  Stamp Tax is due on acts, contracts, documents, titles, books, papers and other facts foreseen in the General Stamp Tax Table, which occur in Portugal and are not subject or exempt from VAT (certain prizes may be simultaneously subject to VAT and Stamp Tax).
  
  The abovementioned facts are also subject to Stamp Tax if, although they occur outside the Portuguese territory, they are presented for legal purposes in Portugal.

• 2. Rates

  The applicable tax rates are those established in the General Stamp Tax Chart at the time the tax is due. In case more than one Stamp Tax rate may be applicable, only the higher actually applies.
  
  A non-exhaustive description of some of the operations liable to Stamp Tax is presented in the table below:
  
  

  Tax basis	Rate (%)
  Acquisition of ownership or other rights on real estate (or consideration or donation).	0.8
  Gratuitous acquisition of goods by individuals (gift or inheritance), including adverse possession.	10
  Letting or sub-letting of real estate (applied on the amount of first monthly rent)	10
  Guarantees, regardless of their nature or form, except if materially accessory and simultaneously to contracts subject to Stamp Tax under other rule: - Less than one year (per month or fraction); - One or more years; - Five or more years or without term.	0.04 0.5 0.6
  Use of credit: -Less than one year (per month or fraction); - One or more years; - Five or more years; - Revolving credit facilities (credit used in the form of current account, overdraft or any other form in which the maturity is not determined or non-determinable) - per month on the average monthly debt balance daily assessed (dividing the sum of the daily debt balance by 30).	0.04 0.5 0.6 0.04
  Operations performed by or through credit and financial institutions: - Interest; - Premiums and interest due on promissory notes; - Commissions on given guarantees; - Other commissions for financial services.	4 4 3 4
  Net asset value of undertakings for collective investment (UCIs) - due on a quarterly basis. - UCIs investing only in money market instruments and deposits; - Other types of UCIs (including real estate funds and companies).	0.0025% 0.0125%

• 3. Payment

  Taxpayer must assess and pay the due Stamp Tax. For instance, is the lender who is liable to assess and pay the Stamp Tax due, except if there is any public notary or credit institution, financial entity or identical entity, resident in Portugal, intermediating the operation, where said liability will remain with the latter.
  
  Notwithstanding, whenever the credit is granted by a non-resident entity without intervention of a public notary or without intermediation of a Portuguese financial institution, the borrower will be responsible for the assessment of the tax and its payment to the Portuguese Tax Authority.
  
  Stamp Tax should be delivered to the Portuguese Tax Authority until the 20th day of the following month where the tax is due. The economic burden of Stamp Tax is borne by the entity that bears the economic interest (for instance: in loans, by the borrower).