Inheritance from a foreign citizen in Portugal: which law applies?

Portugal is home, an investment, and the future for many foreigners. But when the unexpected happens, the question that decides everything arises: in the inheritance of a foreign citizen in Portugal, which law applies?

The answer does not just depend on nationality. It depends on where the person actually lived, what was written (or not) in a will, and the country where assets are located. And, when there are properties in Portugal, accounts abroad and heirs spread across several countries, inheritance can turn into a labyrinth if there is no proper guidance.

In this article, we explain how the applicable law is determined in the inheritance of a foreign national in Portugal, when Portuguese law comes into play, what choices the deceased could have made during their lifetime, and what steps the heirs should follow to avoid wasting time, money, and peace.

Why is the applicable law the first domino in an international inheritance?

In an inheritance with international elements, the applicable law is the first domino because it defines, right from the start:

• Who inherits (spouse, children, parents, partner, other relatives).

• What percentages does each person get?.

• Whether or not there is a legitimate portion (reserved for protected heirs).

• Whether a will can disinherit certain heirs or not.

• How is the division calculated and how are gifts made during one's lifetime dealt with?.

The turning point: the European Succession Regulation

Since 17 August 2015, most successions with a link to European countries have followed a common logic, through the Regulation (EU) No 650/2012, known as the European Succession Regulation.

In practice, this regulation was created to reduce conflicts of laws and prevent each country from claiming succession for itself. In many cases, the rule has become more straightforward: succession should, in principle, be governed by a single law.

Still, simple doesn't mean automatic. There are possible choices, exceptions and situations outside the regulations. And that's often where confusion arises.

General rule for inheritance of foreign citizens in Portugal: habitual residence

The basic rule is this: the law of the country of habitual residence of the deceased at the time of death applies. The concept of habitual residence is not a stamp in a passport. It is a lived reality. In other words, to decide on the inheritance of a foreign citizen in Portugal, one looks at their concrete life:

• He lived stably.

• Where they worked or had the centre of their life.

• Where was the nearest family.

• Where he managed his property.

• How long had you been in that country.

Typical example: Imagine a German citizen who has lived for years in the Algarve, with a home, family doctor, bills, and routine. If they die with this stable connection, the inheritance will generally be governed by Portuguese law, even if they have assets in Germany.

The exception that changes everything: a clearly closer relationship

Although habitual residence is the rule, there is an important exception. If, from the whole of the circumstances, it is clear that the deceased had a manifestly closer connection with another country, the law of that other country may apply.

In practice, this appears when the person:

• I was temporarily in Portugal.

• Came for a short period, keeping the centre of life outside.

• They continued to have their personal and economic life much more linked to their country of origin.

This exception is one of the most litigious areas in successions with international elements, because it can be debated and requires proof.

The choice of law: what a foreigner could have decided during their lifetime

Here's the part that almost nobody knows, but which saves families from conflict.

Within the scope of the European Succession Regulation, it is possible to choose the law applicable to inheritance. In practical terms: a person can declare, in a will (or valid statement), that they want their succession to be governed by the law of their country of nationality. This is often called a choice of law or legal professional. This choice can be decisive because it allows:

• Avoid doubts about habitual residence.

• Ensuring predictability for heirs.

• Align succession with the legal culture of the country of origin.

But there are limits:

• The choice must be express and clear.

• The chosen law must be that of the nationality (or one of the nationalities, if there are several).

• The will must be valid on the required terms.

If you are considering making a will and have connections to various countries, inheriting as a foreign national in Portugal almost always benefits from prior advice. A well-written document during your lifetime avoids years of conflict afterwards.

What changes when Portuguese law applies?

When succession is governed by Portuguese law, there's a point that often surprises many people: in Portugal, there's a legal portion. The legal portion is the part of the inheritance that the law reserves for forced heirs. In other words, even if a will exists, you can't always leave everything to just one person.

To better understand who the protected are and how this logic works, see our guide on forced heirs.

In practical terms, this means that in the inheritance of a foreign citizen in Portugal, the following can occur:

• A will made abroad is valid, but it cannot infringe upon the forced heirship stipulated by Portuguese law.

• A partner in a de facto union may not have the same rights as they would in other countries.

• Donations made during one's lifetime may need to be reviewed at the time of estate division.

If you want an overview of how succession works in here, read on too Inheritance in Portugal: how it works and rights.

What if the deceased chose the law of their nationality?

If there is a will that chooses the law of nationality, as a rule, that law will regulate the succession.

This may change:

• Who is the heir.

• If there is complete freedom to dispose of assets.

• The way to challenge or interpret the will.

Even with a choice of law, parallel issues may still arise which can be dealt with by other rules, such as tax aspects and matrimonial property regime issues. This is why inheritance should be analysed as a jigsaw puzzle, not as a single sheet.

Countries and situations where the Regulation may not solve everything

Not all international inheritances follow the same path.

In European terms, there are countries with peculiarities. For example, Denmark and Ireland have their own regimes in relation to these European rules, which can complicate coordination if the succession is handled by authorities in those countries.

And, of course, a succession can involve countries outside the European Union. The applicable law may continue to be Portuguese (due to habitual residence), but practical execution in another country may require additional procedures.

When there are assets in multiple countries, it is best to prepare documentation early to avoid blocks.

Competence: where is inheritance dealt with and who decides?

Another recurring question is: even if the applicable law is one, where is the inheritance dealt with?

Jurisdiction often falls to the authorities of the country of habitual residence. This might mean Portugal, with the involvement of a notary or court, depending on whether there is an agreement or a dispute.

If there is an understanding between heirs, it makes sense to start with an out-of-court and well-organised approach. Our guide How to share an inheritance Help map out the steps.

In the event of a conflict, it is common to have to proceed with an inventory and, in certain cases, through legal action. See also Court division of inheritance.

The role of the executor in the inheritance of a foreign national in Portugal

In an international setting, the executor must take the lead in the initial administration of the estate, and their role is decisive for:

• Gather documents.

• Identify heirs.

• Prepare the list of assets.

• Prevent heritage from being lost, devalued or used without control.

To understand functions, duties, and limits, read Head of household in inheritance And also List of assets in the inheritance.

When an inheritance involves real estate, accounts in other countries, or heirs who do not speak Portuguese, the executor's documentary organisation can be the deciding factor between a quick process and a nightmare.

European Succession Certificate: the key that unlocks borders

In transnational inheritances within the European space, there is an instrument designed to facilitate proof of heir status and administrative powers: the European Certificate of Succession. This certificate can be very useful for:

• To prove heirship in another country.

• Unblock bank accounts at foreign institutions.

• Register assets in another State.

It's not always mandatory, but when there are goods outside, it usually saves time.

What to do when there is a foreigner and property in Portugal?

When someone dies, and there is an estate belonging to a foreign national in Portugal, heirs often experience two fears simultaneously: the fear of missing deadlines and the fear of making wrong decisions. A clear roadmap helps regain control.

A practical approach could be this:

• Identify the deceased's habitual residence and gather evidence (address, contracts, records, taxes, etc.).

• Check if a will exists and, if it does, look for a choice of law clause.

• Confirm the list of assets in Portugal and other countries.

• To name or confirm who is the head of the household and to formalise powers when necessary.

• Prepare the list of assets and supporting documents.

• To objectively assess assets, particularly real estate and company shares.

• Define the sharing strategy: out-of-court settlement or estate inventory.

• Deal with tax obligations and declare the transfer when applicable.

Errors that cost the most in a foreign citizen's inheritance in Portugal

In international inheritance, the most expensive errors are rarely “big” ones. They are small delays, small misunderstandings, and small omissions that open up enormous wars. The most frequent are:

• To assume that nationality decides everything and to ignore habitual residence.

• Do not search for a will in the country of origin and in Portugal.

• To devalue the legacy and discover late that the will is not enforceable as expected.

• Informal sharing without documentation, creating proof problems.

• Leaving a property “idle” without a strategy, paying property tax, condominium fees and maintenance while the family becomes worn down.

If the case involves significant assets or there is tension between heirs, it is worth getting a professional involved early. In many scenarios, a Solicitor Prevent inheritance from turning into a dispute that devours the estate.

When does it make sense to ask for legal support?

A foreign inheritance in Portugal warrants early legal support when at least one of these signs exists:

• There are properties in Portugal and assets in another country.

• There are heirs in various countries and languages.

• There is a foreign will and doubts about its execution in Portugal.

• There are children from different relationships, de facto unions, or blended families.

• There is a risk of infringing on the reserved portion.

• An heir refuses to cooperate, delaying everything.

In these situations, a well-designed legal plan allows for the swiftest path to be chosen, evidence to be prepared and conflict to be reduced.

Conclusion

Determining the applicable law in an international inheritance is not a legal curiosity. It is the map for the process. It defines whether the will is enforceable, who inherits, how much they inherit, and how an inheritance with assets and people in different countries is resolved.

In most cases, the inheritance of a foreign citizen in Portugal follows the law of habitual residence. However, the choice of law in a will can change everything. And when there's a lack of clarity, conflict arises where it's least expected: in the interpretation of an address, in proving a centre of life, in statutory succession rights that someone was unaware of.

When planning during your lifetime, choose predictability. When resolving after death, choose strategy. In both cases, it becomes much simpler when there's a solid legal plan from the outset.