Inheritance & wills

It is not a cheerful subject, but if you have relocated to, retired to, or bought property in Portugal, it is worth taking time to understand Portuguese inheritance law. There is no legal requirement to draw up a will here — but making one can save a great deal of heartache, and possibly expense, for those left behind, especially if they live in another jurisdiction.

Which law applies?

Portuguese law says the inheritance process is governed by the laws of the home country of the deceased. Where the spouse is a different nationality, the laws of the country of residence may apply instead. So unless your will stipulates otherwise, your estate will be dealt with under the law of your home country.

Can I have two wills?

Yes — one in Portugal and one at home — as long as they do not negate or revoke each other. There are benefits to doing so: translating a foreign will into Portuguese can cost more than writing an original one, and using a foreign will may mean waiting for a Grant of Probate before anything can move.

What is forced heirship?

If your estate is dealt with under Portuguese law, certain relatives are automatically entitled to a portion of it. Legitimate heirs — spouse, biological and adopted descendants, and ascendants — are entitled to a minimum of 50% of the estate. Where there is more than one legitimate heir, that rises to 60%.

The only way forced heirship can be set aside is if the deceased stated that a particular beneficiary should be excluded on grounds of unworthy behaviour — and that can be challenged in the courts.

The remainder of the estate can be distributed however you wish. If no Portuguese will has been left and there are no legitimate heirs or other family, the estate passes to the Portuguese state.

Is there inheritance tax in Portugal?

Portuguese inheritance tax was officially abolished in 2004. It has been replaced by Imposto do Selo, a flat 10% stamp duty levied on Portuguese assets — but legitimate heirs are exempt. Property gifted by the owner during their lifetime will be subject to tax, and property tax or capital gains will be due if the property is sold.

Types of Portuguese will

A Portuguese will costs around €230 plus VAT and fees. There is no legal requirement to appoint an executor — the closest legal heir administers the estate. There are two types:

• Public will — made publicly before a notary who oversees the process, checks identification and confirms you understand it. Signed by two witnesses. This is the most common form.
• Closed will — written and signed privately, then checked and confirmed by the notary.