Portugal has become one of the most popular destinations for British expats in recent years — its warm climate, relatively low cost of living, and the generous Non-Habitual Resident (NHR) tax regime drew thousands of UK nationals to Lisbon, Porto, the Algarve, and the Silver Coast. Even as Portugal transitions away from the original NHR scheme, it remains a magnet for British retirees and remote workers.
But living in Portugal creates real estate planning challenges. Portuguese succession law includes forced heirship rules that can frustrate your wishes if you don't take action. This guide explains what you need to know — and what you need to do.
Portugal follows a civil law tradition, and its Civil Code (Código Civil) includes detailed succession rules. If you die in Portugal as a UK national, Portuguese law applies by default to your Portuguese assets — unless you make an explicit election under Brussels IV. The default rules include significant forced heirship provisions.
Under the Portuguese Civil Code, certain relatives are herdeiros legitimários (forced heirs) who cannot be disinherited:
The minimum protected share (legítima) is 50% of the estate when there is only a spouse or only children. When both a spouse and children survive the deceased, the legítima rises to 66% of the estate. This means that even with a will, you can freely dispose of at most one-third to one-half of your Portuguese estate.
Unlike the Spanish system, Portuguese law treats the surviving spouse as a fully protected forced heir alongside children. The spouse and children share the legítima together, with each child receiving an equal portion of the children's share. However, the spouse's statutory share can mean that children from a previous marriage receive a larger portion than you intended.
EU Succession Regulation No. 650/2012 (Brussels IV) is a powerful tool for British expats in Portugal. By making an express election in your will that the law of England and Wales, Scotland, or Northern Ireland shall govern your entire estate, you can bypass Portuguese forced heirship rules entirely.
The key requirement: the election must be explicitly stated in a valid will. It must refer to your nationality and Article 22 of the Regulation. A sample clause might read: "I elect that the law of England and Wales shall govern the succession to my entire estate, including all assets wherever situated, pursuant to Article 22 of EU Regulation No. 650/2012."
With this election in place, English law applies — and English law has no forced heirship rules. You can leave your entire estate to your spouse, your children equally, a charity, or any combination you choose.
ExpatLegalWills helps British expats in Portugal draft a UK-law will with the correct Brussels IV election — ensuring your Portuguese estate is distributed exactly as you intend.
Create Your Expat Will with Brussels IV Election →Portugal effectively abolished traditional inheritance tax in 2004. What remains is an Imposto do Selo (Stamp Duty) of 10% on Portuguese assets passed to beneficiaries who are not herdeiros legitimários (direct family). Assets passed to spouses, children, grandchildren, and parents are entirely exempt from this tax.
This is genuinely good news for most British expats. If you're leaving your Portuguese property to a spouse or children, there is no Portuguese inheritance tax to worry about. The main tax concern remains UK Inheritance Tax if you retain UK domicile.
Portugal's Non-Habitual Resident (NHR) programme historically allowed qualifying residents to pay a flat 20% income tax rate on Portuguese-source income and, in many cases, receive foreign income tax-free in Portugal for ten years. While the original NHR regime was replaced by a revised "IFICI" regime from January 2024, many existing NHR holders retain their status.
The NHR regime is an income tax benefit, not a succession law mechanism. However, extended residence under NHR may gradually erode your argument that you remain UK-domiciled for IHT purposes. If HMRC successfully argues you have acquired a Portuguese domicile of choice, you would no longer be subject to UK IHT on your worldwide assets — but Portuguese succession rules (including the forced heirship rules) would then apply as the default for your Portuguese assets.
The practical implication: even if you're considering establishing Portuguese domicile, a Brussels IV election in your will is essential to maintain control over how your Portuguese estate is distributed.
Portugal's Golden Visa programme (Autorização de Residência para Atividade de Investimento) attracted significant investment, though property-based Golden Visas in most areas were discontinued in 2023. Existing Golden Visa holders who have invested in Portuguese real estate have significant Portuguese assets that require proper estate planning.
Golden Visa status is a residency permit, not a change of nationality or domicile. For estate planning purposes, you should:
When a person dies owning assets in Portugal, the estate must go through a Portuguese succession process. This involves:
The entire process typically takes four to twelve months with a Portuguese will, and significantly longer without one. The practical recommendation is clear: have a Portuguese will for your Portuguese assets and a UK will for everything else, with both documents drafted to complement rather than conflict with each other.
LegalWills.co.uk gives British expats in Portugal the tools to create a UK-law will that works seamlessly with their Portuguese estate plans.
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