Updated: August 12, 2026

 

For years, thousands of properties across Portugal have sat empty, decaying, or simply unusable — not because no one owns them, but because too many people do.

When a property is inherited by several heirs, and they can’t agree on what to do with it, it becomes what Portuguese law calls an “undivided inheritance.” In 2026, Parliament approved a new legislation, allowing the Government to create a specific regime for undivided inheritances.

Portugal’s new Inheritance Law proposes a new legal path for individual heirs to force a sale and reduce disputes by allowing a single heir to initiate the sale of the inherited property in specific cases.

These changes are expected to bring many long-stuck properties back onto the market and accelerate renovations of some properties that have been in family disputes for years. Here is all you need to know if you’re inheriting property in Portugal or buying real estate here.

Portugal's New Inheritance Law: Key Takeaways

  • On 17 July 2026, Parliament approved the Government's proposal to create a special regime for undivided inheritances.
  • On 24 July 2026, Parliament published the final decree, allowing the Government to create the new law.
  • The proposed changes are meant to speed up the sale of inherited properties and reduce long-running disputes.
  • The new decree-law is not yet in effect, as it hasn’t been published in the Diário da República.

What are the inheritance rules in Portugal?

Portugal’s inheritance law is governed by the Civil Code. When someone passes away, their estate, including any Portugal real estate, is passed down to their legal heir. If there are multiple heirs, these assets are shared as an undivided whole rather than split into individual portions.

The heirs often hold onto the estate jointly, until they formally agree on how to divide it, in a process called partilha. Inheritance law in Portugal has two types of succession:

  • Legal: Applies when there is no will, and Portugal’s Civil Code dictates how each asset is distributed.
  • Voluntary: Allows people to decide how they will distribute their estate through a contract or a will.

If there is no will, the estate goes to the legitimate heirs, such as parents, spouses, children, grandchildren, or grandparents.

Portugal’s succession law works very well when heirs agree. However, it can become a serious obstacle when they don’t, especially with jointly-owned inherited property.

Why Portugal Needed to Reform the Inheritance Law

An undivided inheritance (cabeça-de-casal) means that no single heir can sell, renovate, or rent the property alone, and if even one heir refuses to cooperate, the property can stay frozen for years, or sometimes even decades.

There are around 3.4 million rural properties and about 485,000 vacant family homes in Portugal without a clearly defined owner. This leaves many buildings abandoned and potentially even vulnerable to wildfires, stated PSD lawmaker Paulo Marcelo during the parliamentary debate.

The Government is working to create a fast-track procedure that allows the sale of jointly inherited properties for heirs who cannot agree. Ministers have 180 days to implement the new rules by amending the Code of Civil Procedure and the Civil Code.

This Special Procedure for the Sale of Immovable Property Included in an Undivided Estate is known as Processo Especial de Venda de Coisa Imóvel Integrada em Herança Indivisa.

Changes to Portugal's Inheritance Law: 2026 Update

The proposed new inheritance rules in Portugal would apply to qualifying undivided real estate that exists when the law comes into force. Here are all the changes that could break the deadlock over inherited properties.

GC-ICON-99 Faster property sales

Portugal’s new inheritance rules are aimed at easing Portugal’s housing shortage, by creating a legal pathway for a single heir to force the sale of a jointly-owned Portuguese real estate that’s tied up in family disputes.

The new special legal procedure would allow any heir to request the sale of a property within an undivided inheritance, provided the estate has remained undivided for more than two years due to a lack of agreement.

The other heirs don’t lose their say entirely. They retain the right to participate in the proceedings and can exercise preference rights during the sale. But a single heir can no longer block the process indefinitely.

The law also protects families by delaying the division of an estate for up to three years if the deceased had agreed to posthumous insemination, or until a child conceived through this legally permitted process is born.

The Government has framed this as a way to reduce standoffs between heirs and free up properties that have sat unused for years.

GC-ICON-102 New role to manage inheritance in Portugal

Another major change to Portugal’s inheritance rules is the new executor role. They would have the authority to administer, liquidate, and divide an estate on behalf of the heirs.

Another provision would allow heirs to choose a new person to manage an undivided inheritance by a majority vote, instead of requiring everyone to agree.

However, this rule does not apply if the surviving spouse is already managing the inheritance or if an executor with legal authority has already been appointed.

 

What's excluded from the new rules?

This proposed law doesn’t apply to every inherited property. Instead, there are limits and exceptions that can apply in certain cases.

GC-ICON-105 Exceptions to the new Inheritance Law

  • Family homes: A property that served as the family home cannot be sold under the new expedited procedure without the express consent of a surviving spouse or a recognized common-law partner, regardless of what other heirs want.
  • Insolvency proceedings: Inheritances that are part of active insolvency proceedings fall outside the scope of the new regime.
  • The two-year threshold: The special procedure only applies once an inheritance has remained undivided for more than two years because heirs couldn’t agree. It isn’t an immediate option the moment someone passes away.

Relevance for Portugal's new Inheritance Law for foreigners

For foreign buyers and investors, this reform is worth watching closely because Portugal’s property market is expected to change.

The previous inventory of properties for sale that stalled over the years is expected to start moving. For example, more older properties for renovations, rural land in regions like the Algarve or the Alentejo are likely to be listed on the market.

This matters for anyone pursuing Portugal real estate investment, especially buyers interested in restoration projects or off-market opportunities.

Looking to buy property in Portugal, but don’t know where to start? Read our ultimate guide

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Even with a new legal procedure in place, a handful of risks can still occur. To avoid legal issues, it is critical to consult with a Portugal real estate lawyer.

Such risks can include:

  • Usucapião (adverse possession): Under Portuguese law, a person can acquire ownership through long-term possession, even without formally registering that property or land. That’s why in some cases, the person listed as an owner doesn’t mean is the true legal owner. With due diligence, you can get the chain of title, heir declarations, and actual land use, particularly for older or rural properties.
  • Boundary and cadastral uncertainty: Portugal’s land registry (Registo Predial) often suggests that even if a property is legally registered, it doesn’t mean it has no legal disputes. As a result, it is highly beneficial to consult with a lawyer before buying property or land.
  • Preference rights of other heirs: Even under the new special sale procedure, other heirs keep their rights of preference (direito de preferência) during the process. Buyers should understand how these rights can affect the timing and the security of a purchase.

Goldcrest: How We Can Help You 

Goldcrest is the first buyer’s agent in Portugal. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process. 

Unlike traditional real estate agents in Portugal who represent the seller, we are dedicated exclusively to protecting the buyer’s interests. 

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice. 

Why choose Goldcrest?

  • Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
  • Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price.
  • Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time. We can also help you buy property remotely.
  • Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
  • Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.

Frequently Asked Questions about Portugal's New Inheritance Law

The proposed new inheritance rules in Portugal are:

  • Allowing a single heir to request a sale of a qualifying property within an undivided inheritance
  • A new inheritance executor role that would be picked out by a majority vote

No. Portugal’s new inheritance law is not yet in effect. On 17 July 2026, Parliament approved the Government’s proposal, and on 24 July 2026, it published the final decree, thereby allowing the Government to enact the new law, which is not yet published in the Diário da República.

Based on Portuguese inheritance law, when someone passes away, their property is often passed down to their heirs as a jointly held, undivided real estate. Before an heir wants to sell, renovate, or divide the real estate, they need to reach a unanimous agreement with all the other heirs who inherited that same property.

The costs for transferring a property in Portugal to a family member vary based on the type of transfer, such as an inheritance or a lifestyle gift, and whether Stamp Duty or other transfer taxes apply. Since the case is different for everyone, it is best to consult with a legal professional or a tax advisor in Portugal.

Yes. All heirs need a Portuguese NIF (Número de Identificação Fiscal) to claim their inheritance in Portugal. The NIF is your personal tax number for all fiscal activities, property transfers, or legal procedures in the country.