Dear Editor,
Would it be possible to ask Mr. Greene about inheritance tax?
What if you are a resident here and pay IRS here and inherit money from another country (in my case The Netherlands).
Given the fact that there is a tax treaty I would assume that Portuguese tax laws are applicable but I understand that in this case tax is withheld in The Netherlands.
Is there a way to recover that through IRS?
Name and address withheld
Editor’s note: We asked Dennis Swing Greene from euroFinesco to respond: “In Portugal, successions (read: inheritance) follow the principle of territoriality:no Portuguese taxation exists on inheritance received outside of Portugal. Within the borders of Portugal, immediate family members (spouse, children, grandchildren, parents and grandparents) are exempt. All others (more distant relatives as well as non-family members) pay stamp duty at the rate of 10% on successions. Because Portugal follows the principle of territoriality (taxing only assets within Portugal), its tax treaties only regard income and not capital. Needless to say, inheritance or estate taxes are levies on capital, not income. Please let me know if you have further queries on this or other subjects.”
