So what would happen to your Algarve villa or Lisbon apartment if something happened to you tomorrow?
If you own assets in Portugal but haven’t made a Portuguese Will, your loved ones could face a legal nightmare that no one should have to navigate during bereavement. The uncomfortable truth is that your Will from back home will have little weight when it comes to your Portuguese property.
Portuguese inheritance law operates with rules that are foreign to common law countries. With forced heirship requirements and specific procedural demands, the system doesn’t just recommend a local Will – it demands one. And the stakes couldn’t be higher: your family’s financial security and the legacy you’ve worked so hard to build.
As a lawyer, part of my job is to cut through the confusion and tell my clients exactly what they need to know about Wills in Portugal – before it’s too late to protect what matters most.
Want to hear what other clients
are saying about us?
1. Why You Need a Portuguese Will
If you own property or other assets in Portugal, you need a valid Will. Many foreign residents assume their existing Will from their home country covers their Portuguese assets, but this isn’t always the case.
Having a Portuguese Will for your assets in Portugal avoids legal complications and ensures your wishes are carried out according to Portuguese law. Portuguese Wills are essential for smooth estate administration, compliance with local laws and taking advantage of tax planning opportunities specific to Portuguese inheritance regulations.
2. Portuguese Inheritance Law
Portuguese inheritance law is very different from common law systems. One of the most important aspects is the concept of “forced heirship rules” (legitimacy), which restricts how you can distribute your estate.
Under Portuguese forced heirship rules, a portion of your assets must go to certain family members, regardless of your wishes:
- Spouse and children: Two-thirds of your estate
- Spouse and parents (no children): Two-thirds of your estate
- Children only (no spouse): Half of your estate
- Parents only (no spouse or children): Half of your estate
These family members are considered ‘legal heirs’ under Portuguese law.
Only the remaining portion can be distributed according to your wishes. This is very different from the UK or US where you generally have freedom to leave your estate to whoever you choose.
3. The EU Succession Regulation
The EU Succession Regulation (Brussels IV) allows you to choose the law of your nationality to apply to your entire estate, potentially bypassing Portuguese forced heirship rules. So if you’re a British citizen for example, you could choose British law to apply to your Portuguese assets.
However this choice must be expressed in your Will. Without this clear instruction the default law applicable will be the law of your habitual residence at the time of death. This can avoid legal conflicts and ensure that the succession law is determined by the testator’s nationality, which will impact how assets are distributed under Portuguese law if the applicable law is established as local.
4. Types of Wills in Portugal
Portuguese law recognises several types of Wills:
- Public Wills: Drafted by a notary public in the presence of two witnesses. The notary reads it out loud and both you and the witnesses sign.
- Closed Wills: Handwritten by you or someone else at your direction, then signed by you. You present this document to a notary, who prepares a deed of approval. An equivalent document, such as a driving license or Citizen’s card, is required for identification.
- International Wills: Follows the format established by the Washington Convention of 1973, recognised in many countries.
Each type has its advantages and disadvantages. Public Wills offer more security but less privacy, while closed Wills provide more privacy but may be more vulnerable to challenges.
5. The Process of Making a Will in Portugal
Creating a Will in Portugal follows these steps:
- Consultation: Meet with a lawyer specialising in Portuguese inheritance law to discuss your assets and wishes. Understanding Portuguese inheritance rules during the consultation is crucial as they can impact the drafting of your Will and the applicability of foreign laws.
- Documentation: Gather necessary documents, including your identity card or passport, tax identification number and proof of ownership for any assets you wish to include.
- Drafting: Your lawyer will draft the Will, ensuring it complies with Portuguese legal requirements.
- Execution: For a public Will you’ll visit a notary’s office with two witnesses. The notary will read the Will out loud and all parties will sign.
- Registration: While not mandatory, registering your Will with the Portuguese Central Registry of Wills is highly recommended.
6. Forced Heirship Rules in Portugal
In Portugal the concept of forced heirship rules is a fundamental part of the inheritance system. These rules ensure that a significant part of the estate goes to the legitimate heirs which are the spouse, children and parents. Specifically 50% of the estate must go to these family members to safeguard their rights and ensure they get a fair share.
These forced heirship rules are designed to protect the family unit, reflecting the importance of family ties in Portuguese society. They apply to all Portuguese citizens, wherever they live and also to foreigners who own assets or property in Portugal. So even if you are an expat with assets in Portugal these rules will apply to your estate.
You can override these rules with a valid Will but it must be carefully drafted in accordance with Portuguese law and registered with the competent authority. This way your wishes will be respected while still complying with the legal framework that protects your family.
Understanding these forced heirship rules is crucial for anyone with assets in Portugal. It allows you to plan your estate effectively, to protect your loved ones and to have your wishes respected. By working with a knowledgeable lawyer you can navigate these rules and create a Will that balances your personal wishes with the legal requirements of Portuguese inheritance law.
7. Tax Implications for Heirs
Portugal abolished inheritance tax in 2004 but a 10% stamp duty applies to certain inherited assets, so there is no inheritance and gift tax in Portugal, only stamp duty. Spouses, children, parents and grandparents are exempt from this tax, so Portugal is quite tax friendly for direct family inheritance.
But other family members and unmarried partners may have to pay the 10% stamp duty on inherited assets. The stamp duty is calculated on the total value of the estate after deducting estate debts and administration fees, so they will pay tax on their inheritance.
Banking assets located in Portugal may also be subject to stamp duty if inherited by someone other than a direct family member.
8. Common Mistakes to Avoid
From my experience helping expats create Wills in Portugal I have noticed several common pitfalls:
- Using vague language: Portuguese law requires clarity in Wills. Ambiguous terms can lead to legal disputes.2. Ignoring forced heirship rules: Trying to bypass these rules without proper legal advice often leads to contested Wills.
- Not updating Wills after major life events: Marriage, divorce, births and deaths should trigger a review of your Will.
- Failing to coordinate multiple Wills: If you have Wills in different countries they must be carefully aligned to avoid contradictions.
- Not considering tax implications: While Portugal doesn’t have inheritance tax, other tax implications may apply to your situation.
9. International Residents
If you split your time between Portugal and other countries, determining your habitual residence becomes crucial. This affects which country’s laws apply to your estate if you haven’t made an explicit choice in your Will. Using a foreign Will can lead to complications and potentially higher inheritance taxes.
Consider these factors:
- Where you spend most of your time
- Location of your main home
- Where most of your assets are located
- Where you pay taxes
- Where your family lives
Making a clear choice of law in your Will can help avoid uncertainty and ensure your wishes are respected.
10. Practical Steps for Peace of Mind
Creating a Will isn't just about legal compliance—it's about providing clarity and support for your loved ones during a difficult time. Here's what I recommend to my clients:
- Keep an updated inventory of all your assets in Portugal and other countries.
- Inform your executor about the location of your Will and other important documents.
- Review your Will regularly, especially after life changes or significant changes in asset value.
- Consider a power of attorney that remains valid after death to help your executor handle matters in Portugal.
- Maintain clear records of any debts or financial obligations that would affect your estate.
11. Finding Expert Help
Portuguese inheritance law can be complex, especially for foreign residents. Working with a lawyer who understands both Portuguese law and your home country’s legal system is essential.
When choosing a professional to help with your Portuguese Will look for:
- Experience with international clients
- Fluency in your language
- Understanding of cross-border inheritance issues
- Knowledge of relevant tax implications
- Ability to coordinate with legal advisors in your home country
12. Smart Planning Makes All the Difference
Having a valid Will for your Portuguese assets gives you control over your legacy and peace of mind. While Portuguese inheritance law has its quirks, proper planning will ensure your wishes are respected and less stress for your loved ones.
Don’t leave your family to deal with legal issues during a already difficult time. A small investment in estate planning now will save you big headaches later.
Remember while Portuguese inheritance law may seem tough with its forced heirship rules, it’s all about family interests. With the right guidance you can create a plan that respects Portuguese legal requirements and your personal wishes.
Want to hear what other clients
are saying about us?
13. Frequently Asked Questions
How much does a will cost in Portugal?
The cost of drafting a Portuguese will typically starts at around €230, plus VAT and administration fees. This may increase depending on whether translation, legal advice, or notarial certification is required. Wills involving international assets or foreign nationals may also incur additional costs.
What are the inheritance rules in Portugal?
Inheritance Law in Portugal — Quick Facts
- Forced heirship: Children and spouses are entitled to a mandatory share of the estate.
- EU succession rules: Foreign residents can opt for their home country's law under EU Regulation 650/2012.
- Estate taxes: No inheritance or gift tax, but 10% stamp duty applies (exempt for spouses, children, and parents).
- Executor: Optional, but helps manage complex estates.
- Legal age: Beneficiaries must be 18 or older to inherit directly.
- No will? Assets follow default succession rules, favoring spouse and children.
What happens to a bank account when someone dies in Portugal?
When someone dies in Portugal, their bank accounts are typically frozen until the inheritance process begins. Heirs can access the funds once they provide a death certificate and a formal document proving heirship (usually from a notary or court). The bank may also request identification and tax clearance. Joint accounts may remain partially accessible to the surviving holder, depending on account terms.
How to get a copy of a will in Portugal?
To get a copy of a will in Portugal, request a Wills certificate from the IRN (Instituto dos Registos e do Notariado) confirming if a will exists and where it is registered. Once confirmed, the notary must “open” the will by officially recording the death. Heirs can then request a copy by presenting valid ID, the death certificate, and proof of legal interest.
