Do you own a house, apartment, or valuable asset in Portugal? Wondering how to pass it on to your loved ones while avoiding legal and tax pitfalls? Good news — the Portuguese system is generally favorable… provided you plan ahead.
Why plan your estate transfer in Portugal?
The Algarve attracts thousands of foreign buyers each year. For many, it’s not just a lifestyle project but also an inheritance for future generations. Yet transferring property located abroad — especially in Portugal — requires preparation.
Planning ahead allows you to:
- Preserve family balance
- Avoid complex administrative procedures
- Optimize the taxation of inheritance or donation
Inheritance in Portugal: what the law says
Unlike in France or Belgium, Portugal does not levy inheritance tax between direct family members. This is a major advantage for those wishing to transfer property to children, parents, or a spouse.
However:
- A 10% stamp duty (Imposto do Selo) applies to non-direct heirs (siblings, nephews, friends, unmarried partners not officially registered).
- This tax applies to the value of assets located in Portugal (real estate, vehicles, company shares, Portuguese bank accounts).
- The inheritance declaration must be submitted within three months of death to the Autoridade Tributária e Aduaneira.
- Direct heirs (children, parents, or a spouse legally married or in a registered partnership for more than two years) are exempt.
Assets subject to taxation include:
- Real estate (houses, apartments, land)
- Registered movable assets (cars, boats)
- Company shares or Portuguese bank accounts
The case of French residents in Portugal
French nationals living in Portugal can opt to have their inheritance governed by French law if they wish.
Thanks to EU Regulation Brussels IV (No. 650/2012), a person can specify in their will that the law of their nationality applies to their entire estate — including assets located in Portugal.
- If no specific choice is made, Portuguese law will apply by default.
- This clause must be clearly stated in a valid and compliant will.
- Even if French law is chosen, a tax declaration remains mandatory in Portugal for assets located there.
This mechanism allows individuals to preserve the French forced-heirship system if desired, or benefit from Portugal’s more flexible testamentary freedom.
Donation or inheritance: which strategy to choose?
In Portugal, donations are subject to the same tax rules as inheritances.
That means:
- Direct heirs are exempt from stamp duty, whether the transfer occurs by inheritance or donation.
- Other beneficiaries pay a 10% stamp duty, even in the case of a donation.
However, donations allow you to:
- Transfer assets during your lifetime, with greater control over terms.
- Add clauses such as usufruct or conditional transfer provisions.
It’s an effective tool for estate planning, but it must be supervised by a professional.
Getting expert advice: a crucial step
Portuguese inheritance taxation is simpler than in France, but it requires a tailored strategy based on personal and family circumstances.
Before drafting a will, planning a donation, or purchasing property with future transmission in mind, it is strongly recommended to:
- Consult a lawyer or tax advisor specializing in international private law.
- Assess your tax residency, as it determines applicable law and declaration requirements.
- Check applicable tax treaties if you live in France, Belgium, or another country.
- Anticipate how jointly owned or corporate-held assets will be treated.
At Hardy & Hardy, we connect our clients with experts in Portuguese and Franco-Portuguese law to ensure an optimal transmission strategy. A personalized consultation can be arranged to:
- Review your overall estate situation
- Determine the most appropriate inheritance strategy
- Prepare a will or donation deed that aligns with your goals
Conclusion: yes, inheritance in Portugal can be simple… if you’re well advised
In 2026, Portugal remains one of the most flexible European countries for family property transfers, particularly among direct heirs. But this apparent simplicity should not hide the need for rigorous preparation.
Key takeaways:
âś… Stamp duty only applies to non-direct heirs
âś… Option to apply the inheritance law of your home country
âś… A smooth and efficient process when properly managed
Hardy & Hardy supports international property owners in the Algarve with estate planning and secure asset transmission.
We work with a network of lawyers and tax advisors to provide clear, personalized, and compliant guidance under current regulations.
đź“© Contact our team for a confidential consultation or to book a meeting with an international inheritance expert.