UK Citizen With Portuguese Property: Succession and IHT Guide

EU Succession Regulation and Portugal

Portugal applies Brussels IV, under which the habitual residence of the deceased at death determines the applicable succession law by default. A UK citizen habitually resident in the UK at death who has not made a Brussels IV election may find Portuguese private international law directing that Portuguese law (lex situs) applies to their Portuguese immovable property.

By including a formal election of UK law under Article 22 of Brussels IV in their will, a UK citizen can direct that UK law governs their Portuguese property. This avoids the legítima applying to the Portuguese assets (subject to any Portuguese court override in specific circumstances).

For a full explanation of how Brussels IV works, see our guide on the EU Succession Regulation.

Portuguese Forced Heirship: The Legítima

Portugal's Civil Code (Código Civil) provides for a legítima — a reserved share for certain close relatives. Following reforms in 2012:

• Spouses are no longer forced heirs under Portuguese law (though they retain specific rights including a right to remain in the family home)
• Children and other descendants remain forced heirs with a collective legítima of at least one half (if one child), two thirds (if two or more children), or one third (if only ascendants and no descendants)
• The disposable portion (quota disponível) can be left freely by will

A Brussels IV election of UK law can potentially exclude the legítima from applying to Portuguese assets, though Portuguese courts retain the ability to apply corrective mechanisms in some cases.

Portuguese Stamp Duty (Imposto do Selo)

Portugal charges stamp duty (imposto do selo) on inheritances at a rate of 10% on the taxable value. However, there is a full exemption for:

• Spouses and civil partners
• Descendants (children, grandchildren)
• Ascendants (parents, grandparents)

This means that in most family situations — where a UK citizen leaves Portuguese property to a spouse or children — no Portuguese stamp duty applies. Siblings, nieces, nephews, and other relatives do pay at 10%.

The Portuguese tax return (Modelo 1 do IS) must be submitted to the Portuguese tax authority (AT) within 3 months of death if the deceased was Portuguese resident, or 6 months if non-resident. The Portuguese solicitor or notary can advise.

The Portuguese Notary Process

A Portuguese cartório notarial is required to transfer Portuguese property. The process includes:

1. Preparing the habilitação de herdeiros — the formal identification of heirs, similar to the French acte de notoriété
2. Submitting the Portuguese inheritance tax (stamp duty) declaration
3. Preparing and signing the escritura de habilitação de herdeiros — the notarial deed transferring the property
4. Registering the transfer at the Conservatória do Registo Predial (Land Registry)

You will need certified translations of the UK death certificate and the UK will. See our guide on obtaining an apostille for a foreign death certificate for the authentication process.

All heirs will need a Portuguese NIF (Número de Identificação Fiscal — tax identification number). UK citizens can obtain a NIF at a Portuguese consulate or through a Portuguese tax representative.

UK IHT on Portuguese Property

A UK-domiciled deceased's Portuguese property forms part of the worldwide estate subject to UK IHT. The property is valued at its market value in GBP at the date of death.

There is no specific UK–Portugal estate tax double taxation treaty, though some credit may be available for Portuguese stamp duty paid under the general HMRC rules on foreign taxes. Specialist advice is needed.

See our UK IHT guide for current rates. For the question of whether a UK will covers the Portuguese property, see overseas property in a UK will.

Practical Checklist for Executors

• Obtain multiple certified copies of the UK death certificate with apostille
• Check whether the will contains a Brussels IV election of UK law
• Instruct a Portuguese solicitor (advogado) or notary familiar with cross-border successions
• Obtain NIFs for all heirs who do not already have them
• Note the Portuguese stamp duty filing deadline (6 months for non-residents)
• Obtain a Portuguese property valuation for UK IHT purposes
• Apply for UK Grant of Probate — see applying for probate
• Include Portuguese assets on the IHT417 foreign assets schedule

For the complete UK administration, see our estate administration checklist, complete UK probate guide, and our guide on what documents you need for probate. For cross-border estate planning, see our guide on multiple wills in different jurisdictions.

Get started with Farra for a personalised estate administration task list.