Cross-Border Estate Planning in Portugal: A Guide for International Families and Expats

For international families and expatriates living in Portugal, estate planning often involves more than simply preparing a will. Portuguese succession law, the EU Succession Regulation, and the legal systems of other countries may all interact, particularly where assets or heirs are located in different jurisdictions.

Why Cross-Border Estate Planning Matters

Without careful planning, families may face delays in the administration of the estate, conflicting legal rules, unnecessary costs, or disputes regarding the applicable law.

A coordinated succession strategy can help ensure that your wishes are respected while reducing legal uncertainty for your heirs.

Key Considerations for International Estates

Your habitual residence at the time of death;
Your nationality;
The location of your assets;
The residence and nationality of your heirs;
The existence of previous wills or succession arrangements in other jurisdictions.
Under the EU regulations to rule successions, the law applicable to the succession is generally that of the deceased’s habitual residence. However, in certain circumstances, an individual may choose the law of his or her nationality to govern the succession by making an express declaration in a valid testamentary disposition.

Whether such a choice is appropriate depends on the circumstances of each case and should be considered together with the succession rules and mandatory provisions of the jurisdictions involved.

Portuguese Forced Heirship Rules

Portuguese law contains mandatory succession rules protecting certain close family members, including spouses, descendants and, in some cases, ascendants.

These protected heirs benefit from a reserved portion of the estate (the “legítima”), limiting the extent to which assets may be freely disposed of by will.

Although the EU Succession Regulation allows the choice of the law of one’s nationality, the interaction between foreign succession law, Portuguese public policy and mandatory rules may require careful legal analysis.

Accordingly, international succession planning should not assume that testamentary freedom available under another legal system will automatically prevail in every situation involving Portuguese assets or the Portuguese jurisdiction.

Estate Planning Measures to Consider

A comprehensive estate plan should consider more than the preparation of a will.

Depending on the circumstances, it may be appropriate to:

1. prepare a will that complies with Portuguese legal requirements;

2.assess whether separate coordinated wills are advisable for assets situated in different jurisdictions;

3. include an express choice of applicable law where legally appropriate;

4. review ownership structures for real estate, investments and business interests;

5. ensure consistency between wills, beneficiary designations and incapacity planning documents;

6.organise supporting documentation to facilitate estate administration by heirs and executors.

Each structure should be evaluated individually, considering succession, tax and corporate implications in all relevant jurisdictions.

The EU Succession Regulation and International Families

The EU Succession Regulation aims to simplify cross-border succession by establishing common rules regarding jurisdiction, applicable law and the recognition of decisions between participating Member States.

The Regulation generally provides that a single law governs the succession, reducing the risk of fragmented proceedings across multiple countries.

It also introduced the European Certificate of Succession, which may assist heirs, executors and administrators in proving their status in participating Member States.

However, this certificate does not replace national procedures in every circumstance and should be viewed as one of several available instruments within the administration process.

Tax Considerations

Portugal does not levy a general inheritance tax comparable to that existing in other jurisdictions.

Nevertheless, ownership transfers by death may be subject to Stamp Duty (Imposto do Selo) in respect of certain Portuguese assets where no exemption applies.

Spouses, descendants and ascendants generally benefit from exemption, whereas other beneficiaries may be subject to taxation under the applicable legal framework.

International estates may also be exposed to foreign estate taxes, inheritance taxes or similar levies in the jurisdictions where assets are located or where the deceased maintained relevant tax connections.

As succession law and tax law operate independently, effective planning should consider both aspects simultaneously.

Common Issues in Cross-Border Successions

International families frequently encounter issues such as:

1. conflicting succession rules between jurisdictions;

2. outdated wills prepared before relocating to Portugal;

3.inconsistent beneficiary designations;

4.business structures with unintended succession consequences;

5.difficulties in administering foreign assets;

6. duplication of legal procedures and associated costs.

Early legal planning can significantly reduce these risks.

One Will or Multiple Wills?

Whether an individual should have one international will or several local wills depends on the composition of the estate and the jurisdictions involved.

A single will may be appropriate where assets are concentrated in one country and administration is expected to be straightforward.

Conversely, where substantial assets are located in multiple jurisdictions - particularly immovable property- carefully coordinated local wills may facilitate administration and reduce procedural complexity.

Where multiple wills are used, they should be drafted together to avoid inconsistencies or unintended revocation of earlier testamentary documents.

Estate Planning for Expats Living in Portugal

Individuals residing in Portugal with assets abroad should periodically review their succession arrangements, particularly following changes in residence, family circumstances or asset ownership.

An integrated cross-border estate plan may include:

• Succession planning;
• Tax planning;
• Review of ownership structures;
• Coordination between Portuguese and foreign legal advisors;
• Assessment of applicable succession law under the EU Succession Regulation.

Every international estate presents unique legal and tax considerations, making individual legal advice essential.

How We Can Assist

Our team advises international families, expatriates, investors and high-net-worth individuals on Portuguese and cross-border succession matters.

We assist clients in structuring estate plans that take into account Portuguese law, EU succession rules and the legal frameworks of other relevant jurisdictions, helping to minimise uncertainty and facilitate the orderly transfer of wealth to future generations.

MATLAW is ready to assist you at every step of the way with transparency, clarity, and legal security.

For further information, contact us: geral@matlaw.pt  | (+351) 210 434 150