Selling an inherited property in Portugal: a step-by-step guide for foreign heirs (2026)

Does Portugal have inheritance tax?

Not as a separate tax. Inheritances are charged to stamp duty (imposto do selo) at 10% under item 1.2 of the Stamp Duty Code’s General Table. The tax is charged on the tax registration value (valor patrimonial tributário, VPT) of the property, not its market value.

Close family are exempt under article 6(e) of the Stamp Duty Code:

Heir	Stamp duty on inherited Portuguese property
Spouse or unmarried partner (unido de facto)	Exempt
Children, grandchildren and other descendants	Exempt
Parents, grandparents and other ascendants	Exempt
Siblings, nephews, nieces, friends, anyone else	10% of the VPT of their share

The tax applies whenever the property is in Portugal, wherever the deceased or the heirs lived.

Do exempt heirs still pay the 0.8% stamp duty on property?

No, not on an ordinary inheritance. The 0.8% rate (item 1.1 of the General Table) applies to property acquired by purchase or by gift (doação). It does not apply to property passing on death. This is a common confusion, because a parent who gives a house to a child during their lifetime does trigger the 0.8%.

There is one exception. If the heirs divide the estate (the partilha) and one heir takes property worth more than their share, the excess is charged to IMT (property transfer tax) and to 0.8% stamp duty, even between family members (IMT Code, article 2(5)(c)).

What must be declared to Finanças, and by when?

The death must be declared to the tax office on the stamp duty return (Modelo 1 do Imposto do Selo, “participação”) by the end of the third month after the month of death. A death on 10 June means a deadline of 30 September. The tax office can extend this by up to 60 days if you show good reason. The declaration is compulsory even when every heir is exempt.

It is filed by the cabeça-de-casal, the person who administers the estate until it is divided. The Civil Code (article 2080) sets the order: the surviving spouse, then the executor, then the closest legal heirs, with the eldest breaking a tie.

Before filing, the cabeça-de-casal requests a tax number for the estate itself (NIF de herança indivisa). The return lists every heir and every Portuguese asset, with the death certificate, the will if any, and the IDs and Portuguese tax numbers (NIF) of all heirs. Every heir therefore needs a NIF, including those living abroad.

Until the estate is divided, the cabeça-de-casal also pays the IMI (annual property tax) on the house.

What is the habilitação de herdeiros?

The habilitação de herdeiros is the official document that says who the heirs are. Banks, the land registry and the buyer’s lawyer will all ask for it. It does not divide anything.

You can get it at a notary or at a Balcão das Heranças (the state inheritance desk run by the registries agency IRN, in land registries and some Lojas do Cidadão).

Balcão das Heranças service (gov.pt)	Fee
Habilitação de herdeiros only	€150
Habilitação + division + registration of the property	€425
Extra if the heirs are married to each other	€50

Registration and database fees are added per asset. Notary fees are set by each notary. gov.pt advises starting within three months of the death. Heirs abroad can act through a representative with a power of attorney.

Which country’s law decides who inherits?

For deaths since 17 August 2015, Portugal applies the EU Succession Regulation (650/2012). Its main rules:

• Default: the law of the country where the deceased was habitually resident at death governs the whole estate, including the Portuguese house (article 21).
• Choice of law: anyone can choose the law of their nationality in a will (article 22). This works for UK, US and other non-EU nationals, because the Regulation applies whichever country’s law it points to (article 20).
• Forced heirship: if Portuguese law applies, spouse and children together are entitled to two-thirds of the estate (Civil Code article 2159). A will can only freely leave the remaining third.

One trap for UK residents: where the deceased lived in England and made no choice of law, the Regulation points to English law. English conflict rules send immovable property to the law of where it is located. Article 34 allows that referral back, so Portuguese law, and forced heirship, may apply to the Portuguese house. A will that expressly chooses English law avoids this. Take advice if the will leaves the house away from a spouse or children.

Do you need a UK grant of probate?

A UK grant does not transfer Portuguese property. The Portuguese steps (habilitação, stamp duty return, registration) are always needed.

But if the only will is an English will, Portuguese lawyers report that notaries usually want to see the UK grant of probate, apostilled and translated, before the habilitação. Some also ask for a legal opinion on English law. Waiting for the grant often means missing the three-month stamp duty deadline, so file the declaration on time and add the will later. A separate Portuguese will avoids most of this.

Can the heirs sell before dividing the estate?

Yes. Until the partilha, the estate is a herança indivisa (undivided estate). No single heir owns the house. It can be sold only if every heir agrees and signs the promissory contract (CPCV) and the deed (escritura), in person or through a power of attorney.

What the notary or Casa Pronta desk will need:

1. The habilitação de herdeiros.
2. The property registered in the heirs’ names “in common”. The Balcão das Heranças and notaries can do this registration.
3. Proof that the stamp duty return was filed and any tax paid.
4. Consent of each heir’s spouse, where the heir’s marriage is not under separation of property (Civil Code article 1682-A). How this applies to a foreign marriage depends on the law of that marriage; ask the notary early.
5. The usual seller documents: caderneta predial, certidão permanente, energy certificate.

If one heir refuses to sell, the others cannot force a sale of the house directly. Any heir can ask for the estate to be divided through an inventário (at a notary or in court). An heir can also sell their share of the inheritance, but the other heirs have a right of first refusal.

Selling first and dividing the money is usually simpler than dividing first. A partilha in which one heir takes the whole house can trigger IMT and 0.8% stamp duty on the excess.

How is capital gains tax worked out on an inherited property?

Each heir is taxed on their own share. The tax authority confirmed in binding ruling 27052 (October 2024) that each heir declares their percentage of the gain, even if all the money goes to one of them.

The rules that differ from an ordinary sale:

Item	Rule for inherited property
Acquisition value	The value used for stamp duty on the inheritance, normally the VPT at the date of death (IRS Code, article 45)
Acquisition date	The date of death, not the date of the partilha and not the date the deceased bought
Inflation coefficient	Applies only if you sell at least 24 months after the death
Pre-1989 exemption	Does not carry over. It only protects the surviving spouse’s own half if the couple bought before 1989
Extra share taken in the partilha	Treated as a separate acquisition at the date of the partilha

Everything else follows the normal rules. Non-residents are taxed on 50% of the gain at the progressive rates of 12.5% to 48%, with the rate set by their worldwide income. See the capital gains guide.

Myth: “we inherit Mum’s purchase price” or “we inherit at market value”. Neither is right. The base is the VPT at death, and VPTs are often far below market value. Heirs are frequently surprised by a larger gain than they expected.

Worked example: two children sell a villa inherited in 2021

A mother dies in 2021. Her two children, both living abroad, each inherit half of her Algarve villa. The VPT at death was €150,000. They are her children, so no stamp duty. They sell in 2026 for €480,000. In 2024 they paid €20,000 for a new roof, with invoices. Each has €12,000 of other worldwide income in 2026. We use the 2025 inflation coefficient for 2021 (1.16), because the 2026 table is not out yet.

Step	Calculation	Amount (€)
Sale price		480,000
Acquisition value adjusted	150,000 × 1.16	−174,000
Roof (within 12 years, invoiced)		−20,000
Agent commission	480,000 × 5% × 1.23 (VAT)	−29,520
Energy certificate		−250
Total gain		256,230
Each child’s share	256,230 ÷ 2	128,115
Taxable (50%)	128,115 × 50%	64,057.50
Income for setting the rate	64,057.50 + 12,000	76,057.50
Tax on that total (2026 table)		25,479.93
Average rate	25,479.93 ÷ 76,057.50	33.50%
Portuguese tax per child	64,057.50 × 33.50%	≈ 21,460

Together the children pay about €42,900, roughly 9% of the sale price. Had the base been a market value of €400,000 at death, the gain would have been far smaller. Run your own figures in the selling calculator.

Each child declares their share on the Portuguese return (Modelo 3, Annex G) between 1 April and 30 June 2027. There is no withholding at the deed.

What happens if co-heirs live in different countries?

Each heir needs a Portuguese NIF. Heirs who will not travel sign a power of attorney (procuração) for the CPCV, the deed and the tax steps. If signed abroad, it must be notarised and apostilled, or signed at a Portuguese consulate. One heir or a lawyer can then sign for everyone. Grant the power early: it is the step that most often delays completion. Non-EU heirs should also sign up to the Portal das Finanças electronic notifications so they do not need a fiscal representative.

How long does it take?

Stage	Typical timing
Estate tax number and stamp duty return	By the end of the 3rd month after the month of death
Habilitação de herdeiros and registration in heirs’ names	A few weeks from booking, longer if foreign documents need apostilles and translation
UK grant of probate (if the Portuguese process relies on an English will)	Several months; check current GOV.UK processing times
Marketing to accepted offer	Varies with price and region
CPCV to deed	Commonly 1–3 months
Capital gains declared	1 April–30 June of the year after the sale

These are typical ranges, not legal deadlines, except the stamp duty and tax return dates.

What about tax in your own country?

Keep this in view, but take home-country advice.

• UK inheritance tax: since 6 April 2025, UK inheritance tax reaches worldwide assets, including a Portuguese house, if the deceased was a long-term UK resident (resident in at least 10 of the previous 20 tax years). See GOV.UK.
• UK capital gains tax: a UK-resident heir’s base cost is the market value at death, not the Portuguese VPT, so the UK gain is often smaller than the Portuguese one. UK credit for Portuguese tax is capped at the UK tax on the same gain, so Portuguese tax above that is not refunded. See the UK residents guide.
• Other countries have their own inheritance and gains rules. Check before you sell, not after.

Key points

• Portugal charges 10% stamp duty on inheritances; spouses, partners, descendants and ascendants are exempt, and the 0.8% property rate does not apply on death.
• The stamp duty return is compulsory for everyone and due by the end of the third month after the month of death.
• Heirs can sell before the partilha, but every heir (and, where relevant, their spouse) must consent and sign.
• The CGT base is the VPT at the date of death, with the date of death as the acquisition date; each heir declares their own share.
• An English will usually means waiting for a UK grant of probate; a will choosing a law avoids forced-heirship surprises.
• UK-connected estates may also face UK inheritance tax on the Portuguese home.