Portugal Gazettes Supreme Administrative Court Judgment Clarifying Taxation of Sale of Hereditary Shares in Property

The Portuguese Official Gazette June 4 published Supreme Administrative Court Judgment No. 7/2025, clarifying the tax treatment of the sale of hereditary shares in a property. The taxpayer, an individual, was the heir to a share of a specific property and held a real right over the property. Upon the sale of the taxpayer’s hereditary share, the Tax and Customs Authority argued that the sale should be subject to capital gains tax. The issue in dispute pertained to whether the sale, by heirs, of property that forms part of an undivided inheritance constitutes a burdensome sale of real rights that ...