New Inheritance Rules in Portugal: Can One Heir Force the Sale of a Family Property?

Portugal has approved major changes to its inheritance rules, aimed at unlocking thousands of properties caught in disputes between heirs. Under the new framework, a single heir may be able to initiate the sale of inherited property even when other family members disagree. But what does this mean for foreign homeowners, retirees and international families living on Portugal’s Silver Coast?

Across Portugal, thousands of houses stand empty, sometimes for decades.

Some are former family homes. Others are rural properties inherited by several generations of relatives, many of whom now live in different countries.

One heir wants to sell. Another wants to keep the property. A third cannot be contacted, while someone else refuses to contribute towards maintenance.

The result is often the same: nothing happens.

The property remains unused, repairs are postponed, and what might once have been a valuable family asset gradually deteriorates.

Now the Portuguese government wants to change that.

On 22 October 2026, the Council of Ministers approved new legislation intended to make it easier to resolve inheritance disputes and return unused properties to productive use.

The reform follows Law No. 49/2026, published on 17 August, which authorised changes to Portugal’s inheritance and civil procedure rules.

For international residents on the Silver Coast, the implications could be significant.

Nearly half a million vacant homes in Portugal

Portugal has been struggling with housing shortages, rising property prices and increasingly expensive rents.

At the same time, large numbers of existing properties remain vacant.

According to figures from the 2021 Census cited by the government, Portugal had approximately 485,000 vacant homes.

More than half were reported to be in habitable condition but not available for sale or rent.

Not all these properties are caught in inheritance disputes. Nevertheless, the government considers unresolved inheritance a significant obstacle to bringing some homes back into use.

The problem also extends to rural land.

Government estimates suggest that approximately 3.4 million rural plots are associated with undivided inheritances.

When ownership and management remain unresolved, farmland can become neglected, buildings deteriorate and vegetation grows unchecked.

In some rural areas, poorly maintained land may also increase the risk of wildfires.

The proposed legislation is therefore about more than inheritance disputes. It is also part of Portugal’s wider effort to address housing availability and land management.

What is an undivided inheritance?

In Portuguese law, the expression herança indivisa describes an inheritance that has not yet been formally divided among the heirs.

Imagine that a Portuguese couple dies, leaving a house to their three children.

Each child has inheritance rights, but the estate has not yet been distributed.

Until the inheritance is settled, the house remains part of the undivided estate rather than becoming the separately owned property of any one beneficiary.

If everyone agrees to sell, the matter may be relatively straightforward.

But what happens if two siblings want to sell while the third refuses?

Traditionally, selling a specific property from an undivided estate has generally required agreement among the relevant heirs.

Although legal procedures already exist to resolve disputes and divide estates, they can be complicated, expensive and time-consuming.

The proposed reform introduces a more direct route.

One heir may be able to initiate a sale

The most significant change is the introduction of a special procedure allowing an individual heir to request the sale of property forming part of an undivided estate.

As a general rule, the procedure can be initiated once two years have passed since the inheritance arose.

Importantly, the legislative framework also allows the procedure to be started without that two-year waiting period where formal estate inventory proceedings are already pending, subject to the applicable legal conditions.

This does not mean one family member can simply instruct an estate agent to sell the house and keep the proceeds.

The sale must follow a regulated legal process that protects the rights of other heirs and interested parties.

The legislation is designed to prevent a single disagreement from leaving a property indefinitely tied up in an unresolved estate.

How would the new sale procedure work?

The new system is intended to make the sale of inherited property more transparent and efficient.

An heir who wishes to proceed would initiate the special legal procedure.

The property would be valued through the applicable independent valuation mechanisms, helping establish a price that reflects market value.

Other heirs would have an opportunity to respond and seek an agreed solution.

Under the government’s proposed framework, the parties may be given a six-month period to reach a settlement or arrange a private sale.

If that fails, an electronic auction may be used.

The framework also provides opportunities for heirs to retain the property themselves, including through applicable preferential purchase rights.

The objective is not necessarily to sell every disputed property to an outsider.

It is to establish a route towards a settlement when ordinary family negotiations have broken down.

The exact procedural requirements, safeguards and transitional arrangements must be checked against the final implementing legislation once it is in force.

What if one family member wants to keep the house?

Consider a typical situation.

Three siblings inherit their parents’ Portuguese property.

Two want to sell and divide the proceeds. The third wants to keep it as a holiday home.

Under the new framework, the sibling wishing to retain the property may need to negotiate a buyout or exercise the appropriate rights during the sale process.

For example, assume the house is valued at €300,000 and the three siblings are entitled to equal shares.

<escape>Each sibling’s illustrative interest would be €100,000.</escape>

If one sibling wishes to become the sole owner, they may need to compensate the others for their respective shares.

In this simplified example, that could require €200,000.

Actual inheritance settlements can be considerably more complicated. Outstanding debts, other estate assets, unequal inheritance shares, tax liabilities and legal expenses must all be considered.

Nevertheless, the underlying principle is clear.

A family member who wishes to keep an inherited property may no longer be able to prevent its sale indefinitely simply by refusing to agree.

Special protection for surviving spouses and family homes

The reform also includes important safeguards.

Properties used as the family home may be excluded from the special sale procedure where the surviving spouse has relevant legal rights, unless that spouse expressly consents.

Certain protections may also apply to surviving partners in legally recognised Portuguese de facto unions, known as união de facto.

Additional safeguards apply where heirs are minors, legally incapacitated or absent.

In such cases, involvement from the courts or public authorities may be necessary.

Insolvent estates are also excluded from the ordinary special procedure.

These protections are intended to prevent the demand for a quicker settlement from overriding the rights of vulnerable family members.

Can families still agree to keep property jointly?

Yes.

The legislation does not prevent families from retaining an inherited property together.

Portuguese inheritance law permits agreements to keep an estate undivided for defined periods, generally up to five years at a time, with renewal possible under the applicable rules.

This may be particularly relevant to families who share a holiday property.

However, such arrangements should be clearly documented.

Families should decide who pays for maintenance, insurance, taxes, repairs and improvements, as well as how the property can be used or eventually sold.

Written agreements can help prevent disagreements becoming legal disputes years later.

What does this mean for British, Irish, American and other expats?

This is perhaps the most important question for the international community living in Portugal.

Foreign nationality does not automatically mean that a person’s inheritance will be governed by the laws of their home country.

Portugal participates in the European Union’s Succession Regulation, Regulation (EU) No. 650/2012.

Under the general rule, the law governing a person’s succession is the law of the country where they had their habitual residence at the time of death.

Consequently, a British, Irish, German, Dutch, American or Norwegian national who lives permanently in Portugal may, as a general rule, have their estate governed by Portuguese inheritance law.

However, the Regulation also allows people to choose the inheritance law of their country of nationality.

That choice should be made clearly in a valid will or other legally recognised disposition upon death.

This possibility is also available to nationals of countries outside the European Union.

Why nationality matters

For example:

A British citizen living permanently in Portugal may be able to choose the relevant law of their nationality to govern their succession.

An Irish citizen may choose Irish law.

A German citizen may choose German law.

An American citizen may choose the law of the relevant US jurisdiction, subject to the Regulation’s rules governing countries with multiple legal systems.

A Norwegian citizen may choose Norwegian inheritance law.

However, choosing the applicable inheritance law does not automatically change Portuguese property registration requirements, inheritance taxation or every legal procedure concerning real estate located in Portugal.

The distinction between inheritance law, property law, court jurisdiction and tax rules is particularly important in cross-border estates.

Ireland and Denmark do not participate in the EU Succession Regulation, and the United Kingdom is also outside it. Nevertheless, Portuguese authorities apply the Regulation when handling cases within its scope, including estates involving nationals of those countries.

Does this mean foreign heirs can force a sale after two years?

Not automatically.

The new Portuguese procedure may be relevant to foreign heirs, but its availability will depend on the circumstances of the individual estate.

Questions include whether Portuguese succession law applies, which authority has jurisdiction, whether the property remains part of an undivided estate, and whether any legal protections or contractual arrangements prevent the proposed sale.

There may also be differences between a property inherited by several beneficiaries and one that is already registered in their names as co-owners following a completed estate distribution.

Those are not necessarily the same legal situation.

For foreign families, professional advice is especially important before attempting to use the new procedure.

An example from Portugal’s Silver Coast

Imagine a British couple who retired to Portugal and bought a house near São Martinho do Porto.

They have three adult children, all living in the United Kingdom.

Following the parents’ deaths, the children inherit the property.

Two want to sell. The third wants to keep it as a family holiday home.

If Portuguese succession law governs the estate, the inheritance remains undivided, and the legal conditions are satisfied, the new procedure may offer a way to resolve the disagreement.

The child who wants to retain the house could attempt to acquire the others’ interests.

But if that is not financially possible and no agreement is reached, a sale may ultimately follow.

If the deceased parents validly chose the law of their nationality to govern their succession, the legal analysis could be different.

This is precisely why international estate planning should take place while the property owners are still alive.

Why this matters in Nazaré, Caldas da Rainha and Óbidos

Anyone who has travelled through the smaller towns and villages of the Silver Coast will have noticed older properties that appear to have been empty for years.

Some are traditional village houses. Others are former farmhouses or rural buildings surrounded by land that is no longer actively managed.

Places around Nazaré, Alcobaça, Caldas da Rainha, Óbidos, Peniche and inland Leiria all contain properties with long family histories.

Some may be vacant because of inheritance disputes. Others may be empty for completely different reasons, including poor structural condition, lack of investment or owners living abroad.

The new legislation could make it easier to resolve certain ownership disputes and bring some of these properties back into use.

For local communities, that could mean restored buildings, renewed investment and improved land maintenance.

For prospective buyers, it might eventually create additional opportunities to purchase and renovate older properties.

However, there is no guarantee that large numbers of inexpensive homes will suddenly appear on the market.

The proposed procedure is intended to achieve market-value sales, not forced sales at bargain prices.

Should foreign homeowners have a Portuguese will?

This is an important issue for anyone who owns property in Portugal.

A properly drafted will can help clarify who should inherit, which country’s inheritance law should apply, and how the estate is intended to be administered.

It does not necessarily mean everyone needs a completely separate Portuguese will.

In fact, creating a Portuguese will without reviewing an existing will in another country can cause problems.

Two documents may unintentionally contradict one another, or a later will may revoke an earlier one.

For international families, it is often advisable to have estate arrangements reviewed by a lawyer familiar with cross-border inheritance.

This becomes particularly important where a person owns assets in multiple countries, has children from previous relationships, is unmarried, or wishes to leave property to a particular beneficiary.

Portuguese forced-heirship provisions may also be relevant when Portuguese inheritance law applies.

A choice of nationality law may therefore have major consequences, but it must be made correctly.

What about inheritance tax in Portugal?

The new rules concern inheritance procedures and the sale of inherited property. They do not, by themselves, establish a new inheritance tax.

Portugal does not have a conventional inheritance tax in the same form as some other European countries.

Instead, certain inheritances and gifts can be subject to Imposto do Selo, or stamp duty.

Transfers between spouses, descendants and ascendants are generally exempt from the ordinary 10% stamp duty on gratuitous transfers, although certain property-related charges and administrative obligations may still apply.

Other beneficiaries may face different tax consequences.

Foreign property owners should also remember that their country of nationality, residence or the location of other assets may create additional tax obligations.

For example, UK inheritance tax rules may remain relevant in some circumstances, even where the deceased lived in Portugal.

The new Portuguese inheritance procedure does not remove these issues.

Will the reform help Portugal’s housing shortage?

That is the government’s intention, but the eventual effect remains uncertain.

The new legislation is designed to help resolve cases in which property remains unused because heirs cannot agree on what to do with it.

Potential benefits include bringing vacant houses back into use, reducing prolonged inheritance disputes and improving the management of rural land.

However, Portugal’s housing shortage has many causes.

Not every vacant house is involved in an inheritance dispute, and not every inherited property will become a permanent residence after being sold.

Some may become holiday homes. Others may need substantial investment before they are habitable.

The reform could make a difference, but it is unlikely to solve the housing problem on its own.

When do the new rules take effect?

The Portuguese government announced approval of the implementing decree-law on 22 October 2026.

The underlying legislative authorisation, Law No. 49/2026, was published on 17 August 2026.

However, government approval does not necessarily mean that the new procedure is immediately available.

As of 24 October 2026, the final commencement date has not been verified in this report.

Before starting a legal application, property owners and heirs should confirm that the implementing decree-law has been published in the Diário da República, check its entry-into-force provisions and obtain advice about any transitional rules.

This is particularly important for estates that have already been open for several years.

Good news for some families – a difficult change for others

Portugal’s inheritance reform addresses a problem familiar to many families: valuable property remaining unused because relatives cannot agree on its future.

For an heir who has waited years to receive their share of an estate, a more effective legal procedure may offer welcome relief.

For someone emotionally attached to a family home, the prospect of a sale initiated by another relative can be much more difficult.

Both interests deserve consideration.

For foreign residents and property owners on the Silver Coast, the wider lesson is clear.

Owning property in Portugal is relatively straightforward. Making sure that property passes smoothly to the next generation requires considerably more planning.

Understanding which country’s inheritance law applies, having suitable wills and keeping property documentation in order can make a significant difference.

And perhaps that is the most useful message behind Portugal’s proposed inheritance reform: resolving family disputes is important, but preventing them in the first place may be even better.

Sources and legal references

• MittPortugal.eu – Original Norwegian article, 24 October 2026.
• Portuguese Government – Council of Ministers announcement, 22 October 2026. XXV Governo Constitucional
• Law No. 49/2026 – Diário da República. DR
• EU Regulation 650/2012 – International Succession. EUR-Lex
• Your Europe – Planning a Cross-Border Inheritance. Your Europe