Wills & inheritance

Forced heirship — the key difference

Portugal, like much of continental Europe, applies "forced heirship" (legítima). A protected share of your estate is reserved by law for close family — typically a spouse and children — and cannot be freely given to others. This is very different from common-law countries (UK, US, Ireland) where you can usually leave your estate to whomever you choose. Foreign owners are often surprised that they cannot simply leave a Portuguese property to a chosen beneficiary if forced-heirship rules apply.

Which country's law applies?

Under the EU Succession Regulation (often called Brussels IV), you can usually elect in your will for the law of your country of nationality to govern your succession instead of the law of your country of residence. For a foreign national owning property in Portugal, making that election expressly in a will can be the difference between your wishes being followed and Portuguese forced-heirship rules taking over.

Do I need a Portuguese will?

Not always, but it is frequently advisable. A separate Portuguese will dealing with your Portuguese assets can make administration faster and cheaper for your heirs, avoid translation and recognition delays, and reduce the risk of conflicts between documents. Where you have a will elsewhere, the two must be drafted so they do not accidentally revoke or contradict each other.

Inheritance and stamp tax

Portugal does not levy a classic inheritance tax. Instead, transfers on death may be subject to stamp duty (Imposto do Selo). Close family — spouse, children, parents — are generally exempt, while other beneficiaries may pay a flat rate on the value of Portuguese assets received. The exact treatment depends on the relationship and the assets involved.

Joint ownership and how you hold title

How you take ownership at purchase — sole name, joint names, or through a company — affects what happens on death and how the property passes. It's far easier to structure this correctly when you buy than to unwind it later, so estate planning is best considered before completion.

Practical steps for owners

• Review your existing will once you own Portuguese property
• Consider a Portuguese will for your Portuguese assets
• Take advice on a choice-of-law election under EU rules
• Check how title is held against your succession wishes
• Keep beneficiaries and documents consistent across jurisdictions