Family Law, Sucession LawAdmin

Estate Planning in Portugal: Wills, Inheritance & Succession Explained

Thinking about the future isn’t always easy — but in Portugal, it’s essential. Whether you own property here, reside permanently, or are planning to relocate, it’s important to understand how succession laws work and how to legally plan your estate. Without the right structure in place, your assets may not pass to your intended heirs, and your family could face legal uncertainty or unexpected tax burdens.

In this article, we break down the essentials of estate planning, wills, inheritance, and succession law in Portugal, updated with 2025 legislation and international considerations.

Why Estate Planning Matters in Portugal

Many foreigners living or investing in Portugal are unaware that Portuguese inheritance law applies automatically to assets located in the country — especially property. Even if you have a will from your home country, it may not override local law unless you explicitly choose your national law in a Portuguese will.

This can lead to disputes, delays, and assets being distributed according to default succession rules rather than your personal wishes.

 

1. Understanding Portuguese Succession Law

Portugal follows a forced heirship system, known as “sucessão legítima”:

  • A portion of your estate — typically half to two-thirds — is reserved for legal heirs, such as children, spouses, or parents.

  • You can freely dispose of the remaining portion (the “available share”) through a will.

If you die intestate (without a will), the estate will be divided according to the Civil Code. In this case, even long-term partners or stepchildren may receive nothing unless legally adopted or married.

2. Can Foreigners Draft a Will in Portugal?

Yes — and they should. Foreign nationals who own real estate, bank accounts, or business interests in Portugal are strongly encouraged to draft a Portuguese will. This allows you to:

  • Specify the law of your nationality as the applicable succession law (EU Regulation 650/2012)

  • Designate specific heirs

  • Avoid disputes between heirs from different legal systems

  • Streamline probate and inheritance procedures in Portugal

You can also have multiple wills: one for your assets in Portugal and another for your assets abroad — as long as they don’t conflict.


“Estate planning isn’t just about distributing assets — it’s about peace of mind, clarity, and protection for the people you care about. In Portugal, making your wishes legally enforceable requires proactive planning, especially if you’re a foreign resident with assets or heirs abroad.”Inês Labroinha Solicitor at Labroinha Law

 

3. Inheritance Tax in Portugal: What to Expect in 2025

Portugal does not impose inheritance tax between close relatives (spouses, children, grandchildren). However, a Stamp Duty of 10% applies in the following situations:

  • Transfers to non-relatives (e.g., friends, unmarried partners unless in a civil union)

  • Gifts and donations not properly structured

  • Inheritance of Portuguese property by foreign heirs, unless properly registered

Other taxes may apply in specific cases, such as capital gains on inherited property that is later sold.

4. Appointing a Fiscal Representative

If your heirs live outside Portugal, they must appoint a fiscal representative to manage the estate’s tax obligations and declarations. This can be a lawyer or certified accountant.

At Labroinha Law Office, we assist heirs from abroad by handling:

  • Tax filings

  • Property registration transfers

  • Stamp Duty declarations

  • Communication with notaries and Portuguese authorities

5. Probate Process & Legal Representation

After a death, the estate must go through a “processo de habilitação de herdeiros” (heir confirmation process). This is usually managed by a notary and may include:

  • Collecting death and marriage certificates

  • Confirming heirs and their shares

  • Paying any taxes due

  • Updating land and bank registries

The entire process can take several months — or longer — especially if there is no will or if heirs are located abroad. Having a lawyer ensures the process moves forward correctly and efficiently.

6. Living Wills, Power of Attorney & Advance Directives

Estate planning is not only about what happens after death. In Portugal, you can also create:

  • Power of Attorney (Procuração) – For legal or financial matters in case of incapacity

  • Living Will (Testamento Vital) – Outlining your medical care preferences

  • Guardianship arrangements – For minor children

These instruments ensure that your affairs are handled according to your values and preferences, even if you’re unable to make decisions later.

Common Mistakes to Avoid

  • Assuming your home country will overrides Portuguese law

  • Not updating your will after purchasing property in Portugal

  • Failing to appoint a representative for heirs abroad

  • Waiting too long — then facing rushed decisions during illness or emergencies

 

Need Help with Estate Planning in Portugal?

At Labroinha Law Office, we assist clients from all over the world in drafting Portuguese wills, navigating inheritance procedures, and structuring their estate legally and tax-efficiently. Whether you’re based in Portugal or managing family affairs from abroad, our team is here to ensure your wishes are respected and your loved ones protected.