Inheritance, Wills, and Estate Planning in Portugal: What Expats Need to Know in 2026

Portugal has no inheritance tax — one of the most surprising facts for expats moving from countries where estate taxes can consume 40% or more of a legacy. But "no inheritance tax" doesn't mean "no tax," and the Portuguese succession system has rigid rules that can override your wishes if you don't plan carefully. Here's what every expat in Portugal needs to understand.

No Inheritance Tax — But There Is Stamp Duty

Portugal abolished its inheritance and gift tax (Imposto sobre as Sucessões e Doações) in 2004, replacing it with a far more favourable system:

• Spouses, descendants, and ascendants: Completely exempt from any tax on inheritance
• Everyone else (siblings, friends, unmarried partners, entities): Pay 10% stamp duty (Imposto de Selo) on inherited assets
• Property transfers: Subject to stamp duty of 0.8% on the tax value, regardless of recipient (but spouses/direct family are exempt from the 10%)

This means a child inheriting a €500,000 estate from a parent pays zero tax. A nephew inheriting the same estate pays €50,000. The definition of "direct family" is narrow — it doesn't include stepchildren unless legally adopted, and unmarried partners (even união de facto) are treated as "everyone else" for inheritance purposes, though they may qualify for exemptions after 2+ years of registered cohabitation.

Forced Heirship: The Rules You Can't Ignore

This is where Portuguese succession law catches most expats off guard. Portugal operates a forced heirship (legítima) system — certain family members have a legal right to a portion of your estate, regardless of what your will says.

Who Are the Forced Heirs?

• Spouse
• Children (and grandchildren if children predeceased)
• Parents (only if there are no children)

How Much Must They Receive?

The forced share (legítima) depends on who survives you:

Within the forced share, all forced heirs receive equal portions — you cannot favour one child over another within the legítima. You can only direct the freely disposable portion (quota disponível) as you wish.

EU Succession Regulation (Brussels IV)

This is the most important planning tool for expats. Under EU Regulation 650/2012 (Brussels IV), the default rule is that the succession law of your country of habitual residence at death applies to your entire worldwide estate. If you die while resident in Portugal, Portuguese forced heirship rules apply — even to assets in your home country.

However, Brussels IV allows you to elect the law of your nationality to govern your succession instead. This is done by including a clause in your will:

"I elect the law of [my nationality] to govern the succession of my entire estate, in accordance with Article 22 of EU Regulation 650/2012."

Why this matters:

• A British expat can elect English law — which has no forced heirship — giving complete testamentary freedom
• An American expat can elect the law of their US state — most US states have no forced heirship (Louisiana being the notable exception)
• A French expat gains little, since French law also has forced heirship

Important: The UK is not an EU member, but Brussels IV allows election of the law of any nationality — EU or not. US, Canadian, Australian, and other non-EU nationals can all use this provision.

Making a Will in Portugal

You don't need a Portuguese will if you have a valid will in your home country — but having one makes administration dramatically faster and cheaper. Types of wills in Portugal:

• Public will (testamento público): Made before a notary, dictated and witnessed. The most common and most secure form.
• Closed will (testamento cerrado): Written by the testator, sealed and delivered to a notary. Contents remain private until death.
• International will: Following the Washington Convention format, valid across signatory countries.

Holographic wills (handwritten, unwitnessed) are not valid under Portuguese law. Joint wills (made by two people in one document) are also prohibited.

Recommended approach: Have a Portuguese will covering Portuguese assets and a separate will in your home country covering everything else. Each will should contain a clause stating it does not revoke the other — otherwise the later will can accidentally revoke the earlier one.

Marital Property Regime

Before you can distribute an estate, you must first determine what belongs to the deceased versus the surviving spouse. Portugal's default marital property regimes:

• Comunhão de adquiridos (community of acquisitions): The default since 1967. Assets acquired during marriage are shared 50/50; pre-marriage and inherited assets remain separate.
• Comunhão geral de bens (general community): All assets are shared, including pre-marriage. Rare but still chosen by some.
• Separação de bens (separation of property): Each spouse owns their own assets entirely. Mandatory if either spouse is over 60 at the time of marriage.

The regime matters enormously for inheritance: under comunhão de adquiridos, only the deceased's 50% of shared assets enters the estate — the surviving spouse already owns the other 50%.

Probate Process in Portugal

Portuguese probate (habilitação de herdeiros) can be done through:

• Notary (cartório notarial): Faster and cheaper for uncontested estates. Typical cost: €375-1,000 plus property registration fees.
• Court (tribunal): Required for contested estates or when heirs cannot agree. Significantly slower (6-18 months) and more expensive.

Required documents include death certificate, birth/marriage certificates, property registrations (caderneta predial, certidão de teor), bank statements, and the will (if any).

Common Planning Strategies

1. Brussels IV election: If your home country has no forced heirship, elect your national law in your will
2. Life insurance: Payouts go directly to named beneficiaries, bypassing the estate entirely (not subject to forced heirship or stamp duty)
3. Donation during lifetime: Subject to the same stamp duty rules (10% for non-direct family), but can be a planning tool with proper advice
4. Company structures: Holding property through a company can simplify cross-border succession, but creates ongoing tax obligations (IMI, IRC) and ATAD anti-avoidance scrutiny
5. Pension and investment wrappers: UK SIPPs, ISAs, and similar vehicles have complex cross-border treatment — take specialist advice

Digital Assets and Crypto

Portuguese law hasn't fully addressed digital inheritance. Ensure your will or a letter of wishes covers access to cryptocurrency wallets, online accounts, and digital assets. Seed phrases and passwords stored securely (not in the will itself, which becomes a public document) with clear instructions for executors.

Related reading: Getting Married in Portugal as a Foreigner in 2026 — Civil Ceremonies, the Conservatória, and Property Regimes

Key Takeaways

• Portugal has no inheritance tax for spouses, children, and parents — 10% stamp duty for everyone else
• Forced heirship reserves 50-66% of your estate for spouse and children — but Brussels IV lets you elect your national law instead
• Make a Portuguese will for Portuguese assets, even if you have one at home
• Understand your marital property regime — it determines what's in the estate
• Get specialist cross-border advice — the intersection of two countries' laws creates traps that neither country's advisors fully understand alone