Latest news and stories about inheritance in legal in Portugal for expats and residents.
The Central Administrative Court South has ruled that the sale of inherited properties before the estate is divided is subject to capital gains tax. This decision contradicts a previous stance by the Supreme Administrative Court, which generally exempted undivided inheritances from such taxation.
The government approved reforms to succession law to prevent properties from being stuck in undivided inheritances (heranças indivisas). Under the new rules, a single heir can initiate a sale after a two-year deadlock, and the deadline to accept an inheritance will drop from ten years to two. Property owners and heirs should note these changes aim to increase housing supply by resolving long-standing family disputes.
The government is preparing changes to housing policy that would allow one heir to force the sale of an inherited property even if others disagree. The plan also includes measures to accelerate evictions for non-compliance to encourage more owners to put houses on the rental market. While the government is ending the previous policy of forced leasing (arrendamento forçado), critics argue the new “forced selling” measure is equally controversial. Property owners and heirs should be aware of these upcoming legal shifts.
The Portuguese government has proposed new legislation allowing spouses of heirs to initiate the sale of properties held within undivided inheritances, aiming to streamline property market processes.
The Supreme Administrative Court has ruled against taxing capital gains from the sale of undivided inheritances under personal income tax, yet the Tax and Customs Authority continues to challenge this stance, creating ongoing fiscal uncertainty for taxpayers.
Nearly 32,000 asset-sharing disputes are currently pending in courts and notary offices, with resolution times stretching up to seven years and the total number of affected properties remaining unknown.
This question frequently arises in legal proceedings and has been analysed by the higher courts. Jurisprudence consistently holds that entering into lease agreements for a term of less than six years constitutes an act of ordinary administration. According to this position, the estate administrator may rent out the property without needing the consent of the other heirs, provided the agreed term does not exceed this limit. Conversely, when a lease agreement is signed for a term exceeding six years, the act exceeds the ordinary administrative powers granted to the administrator. In this situation, as it is an act of extraordinary administration, the consent of the heirs is required. Therefore, the need for the heirs' consent depends on the duration of the lease agreement.
The Assembly of the Republic approved the Government's proposal in the general vote. The bill will now be discussed in the parliamentary committee stage.
An analysis of the evolving legal and practical challenges surrounding the management and resolution of undivided estates.
How unshared inheritances block properties and generate conflicts, and what changes with the new legislation
The Government wants to unblock the processes of undivided inheritances, as it considers that this situation keeps a significant number of properties empty throughout the country. Through the creation of a new regime, it proposes to allow a single heir to force the sale process of an inherited property, without needing the...
There is land all over the country whose history is buried in the memories of the elderly. The grandfather knew where his ended and the neighbor's began. The children, perhaps. The grandchildren, almost certainly not. Portugal has about 3.4 million rustic properties tied up in undivided inheritances, equivalent to a third...
In this week's 'Legal Solutions', Jorge Silva, President of the Order of Notaries, clarifies questions regarding the process of donating a house to family members.
Inheritances will be unlockable by a single heir, the surviving spouse of the deceased, or an executor, a figure designated in the will to carry out the division of assets. A former president of the Bar Association expresses doubts regarding the impact of this change on the housing market.
A new court ruling contradicts a previous decision by the Supreme Administrative Court and upholds the Tax Authority's interpretation regarding the taxation of capital gains from the sale of undivided inherited property.
Luís Montenegro states that the country “cannot live with” situations where “inheritances remain undivided” indefinitely, becoming vacant properties. The housing “tax package” has finally been approved.
The Council of Ministers approved a decree today stipulating that one or more heirs may trigger the sale of properties, without the agreement of all parties, after two years of an inheritance remaining undivided.
Legislation to accelerate the processing of undivided inheritances was approved by the Council of Ministers this Friday. The Prime Minister emphasises that 'all heirs' retain their rights over the properties.
Consultations are not mandatory, but those who want to request certificates may have to wait a month
In the 'Legal Solutions' segment, Jorge Silva, President of the Order of Notaries, clarifies some doubts regarding the division of inherited properties, ensuring that there is already a way to put an end to these processes.
In the 'Legal Solutions' segment, Jorge Silva, President of the Order of Notaries, clarifies some doubts regarding the division of inherited properties, ensuring that there is already a way to bring these processes to an end.
The Government wants to relax inheritance rules to promote the sale of property assets. Ricardo Reigada Pereira, coordinating partner at PLMJ for the real estate sector, explains how the process will work.
The essential question is not whether a sale can be triggered by the initiative of a single heir, but whether the new model will be faster, simpler, and more effective.
Home News Portugal approves measures to free up houses from undivided inheritances Portugal approves measures to free up houses from undivided inheritances The Council of Ministers approved, in general, a set of changes to the tenancy laws aimed at overcoming the impasse in resolving undivided in
The sale of a property received through inheritance is subject to personal income tax (IRS) when the asset itself is transferred, rather than the right to the inheritance or the hereditary share, clarifies the Tax and Customs Authority (AT) in a binding ruling published this Monday on the Finance Portal. The interpretation follows a request submitted...
The government wants to prevent an heir from blocking the sale of properties and to speed up evictions when tenants do not pay rent. Susana Peralta also answers a question about the measurement of inequalities.
Luís Menezes Leitão questions the constitutionality of the Government's proposal to accelerate the resolution of undivided inheritances, arguing that it could lead to potential “forced sales”.
A grandfather has passed away, leaving behind a plot of land in the countryside and a house in the city. The children cannot reach an agreement on what to do with the inheritance; years go by and the properties remain stagnant, with no one able to act alone. This scenario, repeated across the country, has a technical name: undivided inheritance. And...
There are houses that remain empty for years because the heirs cannot reach an agreement. The Government wants to change the rules for undivided inheritances. What is at stake? A conversation with journalist Edgar Caetano.
The webpage provides a broad overview of recent international news, with highlights including the sale of Russian oil by the US, the death of a French soldier in the Middle East, and various political and economic updates. Specific to Portugal, the content mentions changes in housing laws affecting inheritance and eviction processes, as well as political developments within the PS party with the re-election of Carneiro as secretary-general. Additionally, there are reports on medical inspections related to diabetes medications and notable events such as a Portuguese figure, Sócrates, being scrutinized for financial misconduct. Overall, the page offers a snapshot of current global and Portuguese-specific news, emphasizing political, economic, and social issues.
The government is not revealing its full strategy, prioritising dialogue with political parties in the coming days, but has approved a set of measures to make solutions for problems regarding undivided inheritances 'faster'.
