How is a property valued for inheritance, partilhas and divorce in Portugal?

Two different questions. For stamp duty on an inheritance or gift, the tax value of a property is the VPT; spouses, civil partners, descendants and ascendants are exempt (Stamp Duty Code, articles 13 and 6(1)(e)). For a fair division the tax value may not suffice. In an inheritance inventory, properties are listed at taxable value (Civil Procedure Code, article 1098).

How does an inheritance inventory treat the value of a property?

The head of the estate lists each property at its taxable value (Civil Procedure Code, article 1098(1)(a) — in practice the VPT). Until the bidding opens, any interested party may request an evaluation, stating the assets and why the listed value is not accepted; the court usually appoints a single expert, and the evaluation should be done within 30 days unless the judge sets another period (article 1114). These inventory rules were placed in the Civil Procedure Code by Law 117/2019.

What about divorce and the division of a couple’s property?

After a divorce, a legal separation or the annulment of a marriage, either spouse may request an inventory to divide the common property; the older spouse acts as head of the estate (Civil Procedure Code, articles 1082(d) and 1133). If they disagree on value, the court can also order an expert report under articles 467 and 468. See Property valuation expert witness and Alternative dispute resolution.

When is a market valuation useful?

When heirs or spouses need a figure they can use to negotiate, or to test the listed tax value — a written valuation on an agreed basis, often market value at a stated date under the IVS and the Red Book. I do that work as a CMVM-registered valuer and a RICS Registered Valuer. See Market value under IVS and What is a basis of value under IVS?.

Read next

• Property valuation expert witness
• Alternative dispute resolution
• Market value under IVS
• What is a basis of value under IVS?

José Covas FRICS — about the author

Sources

1. Stamp Duty Code, articles 6(1)(e) and 13 (Portal das Finanças, official PDF)
2. Civil Procedure Code, article 1098 — list of assets (Informador Fiscal)
3. Civil Procedure Code, article 1114 — evaluation (Informador Fiscal)
4. Civil Procedure Code, article 1082 — function of the inventory (Informador Fiscal)
5. Civil Procedure Code, article 1133 — divorce and division of common property (Informador Fiscal)
6. Civil Procedure Code, article 467
7. Civil Procedure Code, article 468
8. Law 117/2019, which inserted the inventory rules into the Civil Procedure Code (Diário da República)