Portugal is located in the south western part of Europe and the magnificent landscapes of the country provide excellent living conditions amidst the beauty and aura of the natural surroundings. The presence of the exotic Atlantic Ocean in the south and west of the country provides extensive tourism in the coastal areas as well. Therefore there seems to be enough reason to invest in a property in Portugal. However, while such transactions are quite lenient compared to its neighboring countries like France and Spain, the legal and administrative complexities that rule property transactions are often discouraging. But despite so, real estate is an established market and in case of property related transactions certain rules and regulations have to be followed which includes the payment of certain taxes and fulfilling some formalities. In case of any discrepancy, it would result into a legal turmoil and therefore one must be careful to avoid such disasters.

In the Portuguese dialect, Stamp Duty is referred to as Imposto de Selo and it had been implemented as early as the second half of the 17the century in 1660. However, it attained its current form in the year 2000. The rules governing the payment of Stamp duty is authorized by the Codigo do Imposto Municipal sobre Imoveis, also known as CIMI. All individuals who are owners of any property through legal means as inheritors or direct owners are required to pay the stamp duty. It is mandatory and according to the rules and regulations that have been codified by the CIMI or the Codigo do Imposto Municipal sobre Imoveis, in Portugal, individuals are required to pay around 0.8% as Stamp Duty upon the value of a property. In case of inheritance from predecessors, the Stamp Duty is exempted though in case of gifting properties that amount to be paid as Stamp Duty is around 10%.