Inheritance in Portugal when the heir does not live in the country
Updated
When the deceased had assets in Portugal and the heirs live abroad, distance can make the process less clear. Certificates, registries, taxes and partition generally require steps under Portuguese law — even if the beneficiary resides in another State.
We describe, in general terms, stages that commonly arise: declaration of heirs, stamp duty, partition, power of attorney and coordination between heirs in different countries. This does not replace legal advice on the specific case.
Inheritance with assets in Portugal and an heir abroad
An estate centered in Portugal may include property, bank accounts, company shares or other rights located in the national territory. The fact that an heir lives outside the country does not, in itself, prevent the succession from being handled here, but it may require more documentary organization and, sometimes, local representation.
The first step is usually to establish who died, what assets exist, who the potential heirs are and what documents are already available — death certificate, will, registry certificates or statements. Without this initial map, it is easy to mix registry, tax and partition issues.
In estates with an international dimension, it may also be relevant to check whether there are assets or heirs in other countries and which conflict-of-law rules may apply. The answer always depends on the facts and the documentation gathered.
Declaration of heirs
The declaration of heirs identifies who is entitled to inherit and on what terms. It may proceed through a notarial route, when there is agreement and the legal requirements are met, or through court, when there are doubts or disagreement. It can also be obtained through a simplified procedure at the civil registry's inheritance service (Balcão das Heranças).
For those abroad, documents concerning the deceased and the heirs must be gathered and it must be checked whether foreign documents need translation or additional formalities. The declaration does not settle partition or tax payment, but it defines who is an heir and what the succession share is.
When there is a will or heirs of different nationalities, this stage may require closer attention to the order of inheritance and the documents that support it.
Which law governs the inheritance
For deaths since August 17, 2015, Portugal applies EU Regulation No. 650/2012. As a rule, a single law governs the whole estate, wherever the assets are: the law of the country where the deceased had their habitual residence at death (Article 21). A person may instead choose, in a will, the law of a country of which they are a national (Article 22). The Regulation applies even when the law it points to is that of a country outside the European Union (Article 20).
If you are an American living in Portugal, Portuguese succession law will in principle govern your estate. That includes the legítima: a share of the estate that the law reserves for a spouse, children and, in some cases, parents, and that a will cannot override. Depending on the family, it ranges from one third to two thirds of the estate (Articles 2156 to 2161 of the Portuguese Civil Code). Many Americans come from states where you may leave your estate to whomever you choose, and do not expect this. Choosing the law of your nationality in a will is possible, but because the United States has no single law of succession, the choice needs to be drafted with care.
If the person who died lived in the United States and owned property in Portugal, the answer can be surprising. Many American states apply the law of the place where land is located to the inheritance of real estate, and the Regulation accepts that referral back to Portuguese law (Article 34). The result can be that Portuguese law, including the reserved share, governs the house in Portugal while American law governs the rest of the estate. This has to be checked case by case.
Stamp duty on inheritance
In Portugal, on transfers free of charge upon death, the spouse, descendants and ascendants benefit from an exemption from stamp duty. Other heirs — for example siblings, nephews or persons with no family relationship — are subject to the 10% stamp duty rate.
The fact that an heir lives abroad does not, in itself, change this rule. The amounts involved and declarative obligations depend on the specific situation; the stamp duty return must be filed with the tax authority by the end of the third month after the month of death (Article 26 of the Stamp Duty Code), even when every heir is exempt. The deadline cannot be extended.
It is prudent not to assume amounts without documentary analysis. An initial assessment can help clarify which tax steps may be needed before or alongside partition.
Partition of the estate
Once heirs and assets are identified, the question arises of how property will be allocated — amicable partition by public deed, when possible, or court partition when there is no agreement or when the law requires it.
Property usually involves steps before the land registry; accounts or shares may require communication with banks or companies. For heirs abroad, partition may take longer when agreement or documentation is lacking.
Before assuming that all heirs agree, it is advisable to confirm in writing the understanding on each relevant asset. Lack of agreement may lead to court partition, with implications for time and costs that should be weighed.
Power of attorney to handle inheritance from abroad
Those who cannot travel to Portugal for every step may, in certain situations, grant powers to a representative. The scope of the mandate must match the specific acts — appearing before a notary, signing deeds or dealing with registries.
Powers of attorney for use in Portugal may have specific formal requirements when executed abroad — notarial certification, Hague apostille or other formalities, depending on the country and type of act. A power of attorney signed in the United States generally needs an apostille; signing it at a Portuguese consulate in the US is often a simpler alternative.
A poorly drafted instrument can cause delays; it should be aligned with the estate plan and generic templates should not be used without adaptation to the specific case.
Several heirs in different countries
When heirs live in different States, coordination becomes more demanding. Each may have partial information and different expectations about what should happen to the assets — selling a property, keeping it in common ownership or allocating it to one heir with compensation to others.
Written communication and a shared document list often reduce misunderstandings. In some cases one heir takes on documentary organization; in others all prefer professional support in Portugal for neutrality and clarity of steps.
Minor heirs, incapacity, wills with specific provisions or indivisible assets can complicate the picture. In those scenarios, the route to partition and deadlines should be assessed with particular care.
Documents that are often useful
- Death certificate of the deceased.
- Will, if any, and the corresponding certificate.
- Birth, marriage or death certificates of the heirs.
- Identification documents of the heirs.
- Permanent certificate or company documents, if there are shares.
- Land registry certificate, caderneta predial (Portuguese property tax document) or property contracts.
- Bank statements or proof of accounts in Portugal.
- Powers of attorney already granted or drafts in preparation.
- Communications between heirs on the intended partition.
Frequently asked questions
Not always. In many cases documents, representation and acts in Portugal can be arranged without all heirs having to travel. Whether presence is required depends on the facts, the assets and the specific steps involved.
In Portugal, on transfers free of charge upon death, the spouse, descendants and ascendants are exempt from stamp duty; other heirs are subject to the 10% rate. The specific analysis depends on the assets involved and the circumstances of each estate.
It may be useful for certain acts, but its scope must match what is intended. Not all steps can be delegated in the same way, and the instrument must be suited to the purpose.
It usually requires documentary coordination, defining each heir's succession share and choosing the most appropriate route — agreement, court partition or another mechanism provided by law. Distance between heirs can make communication and deadlines more sensitive.
If you are an heir abroad and need to frame an inheritance with assets in Portugal, you may request a legal consultation for analysis of the facts and available documentation.
Written by Luís Correia Crespo, a lawyer registered with the Portuguese Bar Association (license no. 67709L), practicing in Lourinhã, Portugal.
Information note
The information on this page is general and informative. Each inheritance depends on the assets involved, the relationship between heirs, existing documentation and applicable deadlines. It does not replace legal advice nor does it, by itself, create a lawyer–client relationship.