Foreigners have become one of the most visible drivers of the Portuguese real estate market in 2025. According to data from the INE, buyers with a nationality other than Portuguese acquired approximately 41,000 homes in 2025, a 6.6% increase compared to the previous year, with Brazilians clearly standing out as the most numerous group.
The Bank of Portugal confirms the trend: foreigners accounted for 28% of all housing transactions in 2025, moving 859 million euros, with average purchase values significantly higher than those of nationals. British and North American buyers paid, on average, more than double the typical value paid by a Portuguese buyer. In some regions, such as the Algarve or the West zone, foreigners are already responsible for the majority of real estate transactions. .
This growing appetite for property in Portugal brings with it a responsibility that rarely accompanies the excitement of the purchase: planning what happens to that asset in the future. The property acquisition process almost always receives due attention, whether through due diligence , the signing of the promissory contract and the deed or authenticated private document, and subsequently through the land registry. But there is one step that is almost always forgotten: the will.
Buying a property in Portugal creates an international dimension
When a foreigner acquires a property in Portugal, they come to own an asset that may be subject to different legal systems. At the time of death, factors such as the deceased’s habitual residence, their nationality, the location of the assets, and the family composition will be relevant, among others.
In the European space, Regulation (EU) No. 650/2012 establishes, as a general rule, that succession is governed by the law of the State where the deceased had their habitual residence at the time of death. This rule can be set aside when it clearly results from the circumstances that the deceased had a manifestly closer relationship with another State.
The acquisition of a property in Portugal does not, in itself, mean that the succession will be entirely governed by Portuguese law. Nor does it mean that the property will automatically be subject to the law of the owner’s nationality. The determination of the applicable law depends on the set of relevant circumstances.
The European Succession Regulation and the choice of applicable law
Regulation (EU) No. 650/2012 allows a person to choose, to govern their entire succession, the law of the State of which they are a national at the time of the choice or at the time of death. A will with an express choice of law resolves this problem in a simple and secure way.
The chosen law can regulate, among other matters, the determination of beneficiaries, their respective shares, forced heirship, the disposable portion, the powers of the estate administrators, and the partition.
This can have a significant practical impact. For example, a British or American citizen living in Portugal may, in certain circumstances, choose the law of their nationality to govern the succession. Without a valid choice, the succession may be governed by the law determined by the general rules of Regulation No. 650/2012, normally related to the deceased’s habitual residence.
Forced heirship: an important limitation on testamentary freedom
Under the terms of Article 2156 of the Civil Code, forced heirship corresponds to the part of the inheritance that the law reserves for the forced heirs and which the deceased cannot, in principle, dispose of freely by will. In turn, Article 2157 of the Civil Code establishes that the forced heirs are the spouse, descendants, and ascendants, according to the order and rules provided by law. In the Portuguese system, the size of the forced heirship depends on the family composition. For example, the forced heirship may correspond to two-thirds of the inheritance when the spouse and descendants concur, or when the spouse and ascendants concur. When the spouse is the sole forced heir, the forced heirship corresponds to half of the inheritance.
For those coming from systems where testamentary freedom is broader, this limitation may come as a surprise, especially in the following cases:
- Second marriages and the existence of children from previous relationships;
- A wish to primarily benefit one of the children;
- A wish to benefit a charitable institution or another entity;
- The existence of a partner who is not married to the owner;
- The existence of significant assets in different jurisdictions.
A valid choice of the law of nationality can set aside some Portuguese succession rules, including those relating to forced heirship. However, its effects always depend on the specific situation that will be subject to analysis.
Without a will: what can happen in practice
In the absence of a will, the succession will be determined by the law applicable according to the relevant rules of international succession law. If Portuguese law is applicable, the succession will follow the rules of intestate and forced succession, without prejudice to other legal provisions or a valid choice of law.
In Portugal, the process may involve several steps:
- Probate of heirs: procedure intended to formally identify the persons called to the succession;
- Partition of assets: division of the estate according to the applicable shares;
- Compliance with tax obligations: reporting the transfer and eventual payment of tax, if applicable;
- Registration and regularization of the property: updating the ownership of the property and other assets subject to registration;
Administration of the estate: management of the assets until their liquidation and partition.
The existence of heirs residing abroad, documents issued in other countries, different languages, and eventual conflict between family members can make the process more complex. The absence of a will does not necessarily prevent the transfer or sale of the property, but it can make it difficult to identify interested parties, obtain documents, and make decisions about the assets.
Why the moment of purchase may be the right time
Planning succession early is a simple and positive way to protect your assets and the people who are important to you. Therefore, the moment of purchasing a property is an excellent opportunity to also make a will, for three practical reasons:
- It is the period when the client is already dealing with various formalities in Portugal, such as obtaining a NIF, opening a bank account, and the deed, often having the support of a lawyer or a notary;
- It avoids indefinite postponement: after the deed, attention tends to turn to other priorities and the will may end up never being made;
- It allows for calm planning: the choice of applicable law, the identification of beneficiaries, the eventual appointment of an executor, and coordination with existing wills in other countries should be considered before an urgent situation arises.
What a good international will should include
For foreign clients with assets in Portugal and, frequently, in other countries, a well-structured will should normally consider:
- The express choice of the law of nationality, when that is the client’s intention and the requirements provided for in Regulation (EU) No. 650/2012 are met;
- Coordination with existing wills in other jurisdictions, in order to avoid accidental revocations, contradictions, or gaps;
- The eventual appointment of an executor, when that solution is appropriate;
- Clear identification of the property located in Portugal, including its destination, the existence of any legacies, and coordination with the remaining assets;
- Analysis of the situation of the spouse, the common-law partner, and/or children from previous relationships, taking into account the succession and protection rights that may be applicable;
- Coordination with global succession planning, including donations, life insurance, corporate structures, and wills made in other countries, where they exist;
- Separate tax analysis, to ensure that succession provisions do not produce unexpected tax consequences.
A will made in Portugal can be an important piece of succession planning regarding the assets located here. However, it must be coordinated, whenever necessary, with legal advice in the client’s country of origin, in order to ensure the global coherence of the succession provisions and their respective validity in all relevant jurisdictions.
In summary
Buying a house in Portugal is, for many foreigners, the realization of a life project. Protecting this achievement and the people the owner intends to benefit requires an additional step, simple but often ignored: dealing with succession planning and considering the creation of a will.
This will can allow for the choice of applicable law, clarify the owner’s wishes, organize legacies, and reduce uncertainties for the family. It does not, in itself, eliminate all legal or tax limitations, but it can avoid ambiguities, conflicts, and unnecessary delays.
Planning should be done taking into account nationality, habitual residence, family composition, the existence of common-law unions, the location of assets, and the tax rules applicable at the time of transfer.
This article is for informational purposes only and does not replace personalized legal advice. Each succession situation depends, among other factors, on nationality, habitual residence, family composition, the location of assets, the existence of marriage or a common-law union, the content of any previous wills, and the applicable legislation. The choice of applicable law, the effects of forced heirship, the eventual existence of a common-law union and the rights that may arise from it for the surviving member, as well as possible tax consequences, must be analyzed on a case-by-case basis.
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