When a Loved One Dies in Portugal: A Practical Guide for Foreign Families
Domingas Andresen Guimarães | Lawyer
Navigating Succession in Portugal: A Practical Guide for Foreign Families
With an increasing number of foreign residents in Portugal, cross-border succession is becoming more common and often complex. Understanding which law applies, and how Portuguese rules impact inheritance, is essential to avoid complications and ensure a smooth transfer of assets.
It’s no surprise that Portugal has become an increasingly attractive destination for foreign nationals looking to build their lives here. Many choose Portugal to work remotely or to enjoy their retirement.
As a result, it is not uncommon for foreign residents to pass away in Portugal, often without close family members nearby, which can raise several questions and concerns about the law applicable to the succession and how to comply with the legal obligations required by the Portuguese authorities.
In Portugal, the succession process begins at the moment of death. This is when the estate is formally opened and the transfer of assets to the heirs is triggered.
Before that transfer takes place, however, there are some steps that the presumed heirs must take. One of the most important is determining
which law applies to the succession.
In Portugal, successions with an international element are largely governed by Regulation (EU) No. 650/2012 of 4 July (the European Succession Regulation), which applies across most European Union countries, with the exception of the United Kingdom, Ireland, and Denmark.
Under this Regulation, the law applicable to a succession is, in principle, the law of the deceased’s last habitual residence, regardless of nationality. So, if a foreign national was living in Portugal on a stable and regular basis, with the centre of their life established here, the succession may be governed by Portuguese law.
However, the Regulation also allows individuals to choose the law that will apply to their succession. A national may, during their lifetime, in a clear and explicit manner, typically through a will, elect for the law of their nationality to apply. This can help avoid uncertainty, giving heirs greater predictability and legal certainty throughout the process.
If no such choice has been made, habitual residence becomes the key factor in determining the applicable law.
It’s also important to note that even where Portuguese law does not apply, it may still be necessary to deal with Portuguese authorities in order to transfer assets located in Portugal.
This highlights the importance of having coordinated legal advice in cross-border situations.
Once the applicable law has been identified, and if it is Portuguese law, it becomes essential to identify the heirs. A distinction must be made between “forced heirs” (such as the surviving spouse, descendants, and ascendants), who are entitled to a minimum share of the estate (the “reserved portion”), and any testamentary heirs named in a will.
The concept of the “reserved portion” often raises questions among foreign residents, as Portuguese law does not allow someone to leave their entire estate to a single individual. A portion is always reserved for forced heirs. For this reason, many foreign nationals choose to make a will and opt for the law of their nationality to apply.
One of the first formal steps in the succession process, after obtaining the death certificate, is the execution of the deed of heirs (“habilitação de herdeiros”). This document officially identifies the heirs and confirms whether a will exists. If the presumed heirs are unsure whether a will was made, they may request this information from the Portuguese civil registry.
Once the heirs have been formally identified, a full list of the deceased’s assets must be prepared. This includes real estate, bank accounts, financial investments, company shares, vehicles, as well as any other assets and liabilities existing at the date of death.
This asset list is necessary to comply with the obligation to report the death to the Portuguese Tax Authority within three months, for stamp duty purposes. Although transfers to forced heirs are exempt from stamp duty, the reporting obligation still applies, and failure to comply may result in penalties.
After dealing with the Tax Authority, the estate remains undivided until the assets are formally distributed among the heirs. During this period, the estate is typically managed by the Head of Estate (Cabeça-de-Casal), who is responsible for day-to-day management, reporting to the other heirs, and representing the estate before third parties. This phase can be particularly challenging, especially where ongoing asset management is required or where disagreements arise between heirs.
The distribution of assets is, without a doubt, the key moment in the succession process. It can take place in one of two ways:
- Out of court, where all heirs agree on how to divide the estate; or
- Through the courts, where there is disagreement and the division is decided by a judge.
Once the distribution is completed, the heirs must update the ownership of the inherited assets through the relevant registrations with the competent authorities.
Given the complexity that succession proceedings can involve, especially in cases with diverse assets or conflicts between interested parties, particularly in cross-border situations, specialised legal support is essential to ensure proper coordination and legal certainty throughout the process.
For families navigating succession in Portugal, especially in cross-border situations, professional guidance is essential.
If you need personalised support or have questions about the succession process, you can reach out to the team at LVP Advogados via our contact form to arrange a consultation.
Our specialists can help ensure that legal obligations are met and that the process is handled smoothly and efficiently.
