Complete Guide to Real Estate Inheritance in Portugal

Published on May 3, 2026 and written by Cyril Jarnias

Navigating the Complexity of Real Estate Inheritance in Portugal

Navigating the complexity of real estate inheritance in Portugal can seem like a daunting task for many heirs, but understanding the legal and tax procedures is essential to ensure a smooth transfer of assets.

Portugal, with its specific regulations and distinct legislation, offers a unique legal framework that deserves special attention, especially for foreigners interested in acquiring property in this country.

From the declaration of death to the final distribution of assets, each step requires a precise understanding of the heirs’ rights and tax obligations, as well as knowledge of any potential tax exemptions or reductions.

This article explores the complete real estate inheritance procedure in Portugal, aiming to provide practical advice and tips for navigating this sometimes complex process effectively.

Understanding the Basics of Real Estate Inheritance in Portugal

Portugal applies a civil law system inherited from the Napoleonic Code, unlike common law countries such as the United Kingdom. This framework strictly determines the order of heirs, the rights of the surviving spouse, and the scope of wills.

Fundamental Principles of Inheritance in Portugal:

• The order of succession prioritizes descendants (children, grandchildren) first, then the surviving spouse, ascendants (parents, grandparents), and finally collateral relatives (siblings).
• The surviving spouse benefits from special protection, including the right to retain the marital home, regardless of the number of heirs.

Matrimonial Property Regimes and Real Estate Inheritance:

Matrimonial Regime	Effects on Real Estate Inheritance
Community of Acquired Property	Assets acquired during the marriage are joint. Upon death, half of the joint property goes to the spouse, the other half is shared among the heirs.
Separation of Property	Each spouse owns their own property. Only the deceased’s assets enter the inheritance.
General Community of Property	All assets, before and during the marriage, are joint. Inheritance applies to the deceased’s share of the joint estate.

Concrete example:
A couple married under the community of acquired property regime owns an apartment purchased together. Upon the death of one spouse, half of the apartment automatically belongs to the surviving spouse; the other half is distributed among the forced heirs (e.g., the children).

Forced Heirship (Reserved Portion):

• Portugal applies the principle of forced heirship. A minimum share of the estate (the “reserved portion”) must go to the forced heirs: children, surviving spouse, or even ascendants in the absence of descendants.
• The testator can only freely dispose of the remaining part (the “available portion”).
• Example: If a deceased leaves a spouse and two children, they will mandatorily share a large part of the inheritance, limiting testamentary freedom.

Recognized Wills and Legal Validity:

Type of Will	Main Characteristics
Public Will	Drafted and signed before a notary
Closed Will	Drafted by the testator, then certified by a notary
International Will	Drafted before a notary, in the presence of two witnesses
Special Will	Valid in exceptional circumstances (military, disasters, etc.)

• Since EU Regulation 650/2012, a foreign resident in Portugal can choose for the inheritance law of their home country to apply through a will.

Taxation of Real Estate Inheritance in Portugal:

• There are no inheritance taxes between spouses, direct ascendants, and direct descendants.
• If the inherited real estate property is resold, a tax on real estate capital gains applies (standard rate: 25%).
• Exemption possible if the sale concerns the primary residence and the amount is reinvested in another home.
• Certain expenses (renovation, notary fees) are deductible from the capital gain.

Comparison with Other European Systems:

Country	Applicable Law	Forced Heirship	Inheritance Tax (Spouse/Children)	Recognized Wills
Portugal	Civil Law	Yes	Not taxable between close relatives	Public, closed, international, special
France	Civil Law	Yes	Progressive scale based on relationship	Holographic, authentic, mystic
United Kingdom	Common Law	No	Taxation based on value, no forced share	Free form (subject to conditions)
Spain	Civil Law (regional variants)	Yes (except Catalonia, Balearic Islands)	Variable taxation by region	Holographic, open, closed

Key Points to Remember:

• The Portuguese system strongly protects forced heirs and the surviving spouse.
• Testamentary freedom is limited by the forced heirship rules.
• Taxation is favorable for transfers between close relatives, but the resale of an inherited property may generate capital gains tax.
• The choice of matrimonial regime and drafting a compliant will are essential to optimize the transfer and avoid disputes.

How to Inherit Property in Portugal: Steps and Procedures

Key Steps in the Real Estate Inheritance Process in Portugal:

1. Official Declaration of Death
   • Declare the death to the Portuguese authorities within 48 hours.
   • Obtain the death certificate, essential for all subsequent steps.
2. Verification and Registration of the Will
   • Check for the existence of a will (public, holographic, or mystic will).
   • If a will exists, ensure it is registered with the Central Will Registry.
   • In the absence of a valid will, the inheritance follows Portuguese legal rules.
3. Identification and Registration of Heirs
   • Officially register the heirs (average time: 1 to 3 months).
   • Obtain the heir certificate from the competent services.
4. Valuation and Inventory of Real Estate Assets
   • Draw up a complete list of assets to be shared (carried out by the executor).

   This step is mandatory:

   • In case of disagreement between heirs
   • If debts exceed the value of the inheritance
   • If some heirs are minors or incapacitated

   The inventory includes all real estate assets and their estimated value.

5. Distribution Among Heirs According to Portuguese Law

Type of Inheritance	Distribution	Priority Order
Legal Inheritance	Direct heirs	Spouse > children > parents
Testamentary Inheritance	According to the deceased’s wishes	Respect the will
Mixed Inheritance	Legal + Will	Case by case

• Beneficiaries named in the will receive their specific share.
• Legal heirs have a forced share that the testator cannot override.
• The surviving spouse generally benefits from:
  • Lifetime usufruct of the main home
  • A substantial or even total share depending on the presence of other heirs

6. Administrative Transfer of Ownership
   • Effective transfer carried out before a notary or via a dedicated platform (e.g., inventarios.pt)
   • Registration in the land registry and obtaining an official certificate
7. Tax Implications
   • For property inherited by a direct relative (spouse/child):
     • No inheritance tax for these categories
   • For other beneficiaries:
     • Possible payment of a real estate transfer tax, the amount of which depends on the family relationship and the estimated value

Required Administrative Steps:

• Collection of required documents:
  • Death certificate
  • Certificate/copy of the will, if any
  • Heir certificate/attestation
  • Proof of real estate ownership
• Signing before a notary to validate the transfer
• Final registration in the land registry

Practical Tips to Facilitate These Steps:

• Get assistance from the start with:
  • A lawyer specialized in Portuguese inheritance law
  • A local tax expert to anticipate any potential tax charges
  • A sworn translator if documents are in a foreign language
• Prepare all original documents before each official appointment
• Regularly check that all registrations are properly recorded with the relevant authorities

Recommended Resources/Professionals:

• Law firms specialized in Portuguese law
• Experienced notaries with international practice
• Local tax services for accurate simulations
• Official platforms like inventarios.pt for digital tracking

Important tip: Anticipating potential disputes between co-heirs through notarial mediation often allows for a faster and less costly resolution.

The Role of the Notary in International Inheritance in Portugal

The notary plays a central and indispensable role in the international inheritance process in Portugal, especially when it comes to real estate. Their main mission is to verify and validate inheritance rights in accordance with Portuguese legislation, while ensuring compliance with applicable European and international regulations.

Main Responsibilities of the Notary in an International Inheritance in Portugal:

• Verification of Inheritance Rights:
  The notary ensures the identity of the heirs, checks supporting documents (deed of notoriety, European Certificate of Succession), and validates the conformity of the will or the deceased’s wishes according to the applicable law.
• Preparation of Legal Documents:
  They draft the necessary deeds for the transfer of assets, notably authentic deeds related to real estate located in Portugal, powers of attorney, and inheritance declarations.
• Establishment of the Estate Inventory:
  The notary draws up a detailed inventory of the deceased’s assets, distinguishing between movable and immovable assets, allowing the determination of the estate and the distribution of the heirs’ rights.
• Mediation and International Coordination:
  They act as an intermediary between the heirs (often of different nationalities), Portuguese authorities, and any foreign authorities. They facilitate communication, coordinate the translation and legalization of documents, and ensure the application of foreign decisions on Portuguese territory.
• Application of European and International Regulations:
  The notary ensures the application of EU Regulation No. 650/2012, which harmonizes inheritance rules within the EU, particularly the choice of applicable law and the recognition of European Certificates of Succession. They also ensure compliance with any applicable bilateral conventions.
• Prevention and Resolution of Disputes:
  Thanks to their role as an impartial third party, the notary helps prevent conflicts between heirs, proposes amicable solutions, and, if necessary, oversees mediation or directs parties to the competent courts.

Specific Administrative and Legal Steps Where the Notary Intervenes:

Step	Notary’s Intervention
Initial contact by heirs	Analysis of documents, verification of applicable law
Gathering documents and information	Collection of death certificates, wills, certificates of notoriety
Establishing the inventory	Description of assets, valuation
Drafting authentic deeds	Transfer deeds, powers of attorney, inheritance declaration
Publication and registration	Registration in the land registry and notification to authorities
Distribution of assets	Allocation of rights, transfer of property titles

Specifics Regarding Real Estate in Portugal:

• The Portuguese notary is the only one competent to draw up authentic deeds for real estate located in Portugal.
• Deeds must be registered with the Portuguese land registry to guarantee the validity of the property transfer.
• In the case of an international inheritance, presenting a European Certificate of Succession (official translation required) facilitates the recognition of the heirs’ rights without the need to travel to Portugal.

Essential Points to Remember:

• The notary guarantees the legal security of international transfers and protects the interests of the heirs, particularly in real estate matters.
• They assist parties remotely when possible, limiting travel and simplifying administrative procedures.
• Their expertise extends to inheritance taxation, ensuring the declaration and payment of any applicable inheritance-related taxes.

The Portuguese notary is the key player who ensures the regularity, transparency, and security of the international inheritance process, particularly for the transfer of real estate assets.

Inheritance Taxes for Foreigners in Portugal

Inheritance taxes in Portugal are structured around a 10% stamp duty applied to the value of assets located in Portugal. There are no classic inheritance taxes. This regime applies equally to foreigners and Portuguese citizens for assets located on Portuguese territory, with significant exemptions for direct heirs.

Category	Stamp Duty (10%)	Exemption
Spouse/Partner	No	Yes
Children/Grandchildren/Adopted	No	Yes
Parents/Grandparents	No	Yes
Other Heirs	Yes	No

Differences Between Foreigners and Portuguese Citizens

• The basic tax regime is identical for both groups for assets located in Portugal.
• However, foreigners can choose to apply the inheritance law of their nationality, rather than that of Portugal, thanks to the European “Brussels IV” regulation. This choice must be formalized through a will or official declaration during their lifetime.
• This choice notably allows avoiding the Portuguese forced heirship rules, which automatically reserve a share of the inheritance for direct heirs.

International Agreements and Treaties

• The European Brussels IV Regulation (EU) applies to international inheritance:
• By default, the law of the deceased’s habitual residence applies to the entire inheritance, but it is possible to choose the national law.
• This provision facilitates estate planning for foreigners from countries that recognize testamentary freedom.

Procedure for Valuing Real Estate Assets

• All real estate assets located in Portugal are valued according to the tax cadastral value (“valor patrimonial tributário”) at the time of death.
• This value serves as the basis for calculating stamp duty.
• In the case of inheritance, it is mandatory to file a specific tax form (Model 1) with the Portuguese tax authorities within three months of the death.

Administrative Steps and Required Documents for Foreigners

• Filing of Model 1 form with the Portuguese tax authorities within three months of the death.
• Payment of stamp duty within two months of receiving the liquidation notice.
• Presentation of the following documents:
• Death certificate.
• Certificate of inheritance (if issued abroad, sworn translation required).
• Property titles for the real estate assets.
• Identification documents of the heirs.
• Proof of residence (to determine the applicable law).
• The property transfer is only effective after payment of the stamp duty. No sale of the property is possible before this step.

To Remember

Direct heirs (spouse, children, parents) are completely exempt from stamp duty on inheritances in Portugal. Other heirs, including friends or distant relatives, are subject to the 10% rate. Foreigners benefit from the same tax treatment as nationals but have the option to choose the inheritance law of their home country, subject to formal conditions.