The government has approved a decree aimed at resolving the long-standing issue of undivided inheritances, where legal deadlock between heirs often leaves properties empty and tied up for years.
- Under the new rules, one or more heirs will be able to start the sale of a property after two years, even if not all heirs agree. This is just one of several changes to inheritance law.
As part of a wider housing reform, the government says it has approved two Decree-Laws and a Bill designed to increase the number of homes available on the market, according to a statement from the Council of Ministers.
The stated aim is to introduce a new way of resolving inheritance disputes and to enable the release of vacant properties that have remained off the market for decades, particularly in urban centres and rural areas.
Although the full text of the decree has not yet been published, the government has outlined the main measures concerning undivided inheritances. Central to this is the creation of a “Special Process for the Sale of Undivided Real Estate”. Under this procedure, if no agreement has been reached within two years of the succession opening, any heir may apply to sell the property at market value, even without the consent of the others.
The reform also keeps open the option for the testator to define the assets that make up the legitimate portion, strengthening estate planning. In practice, this means the person making the will can decide exactly which assets will cover the legally protected share reserved for compulsory heirs, such as children or a spouse.
The aim is to give greater clarity and control over how the estate is divided, reduce disputes between heirs and safeguard specific assets where necessary.
The proposed law further provides for:
- Sale prices to be set on the basis of an expert valuation
- Electronic auctions as the standard method of sale
- A right of redemption granted to the heirs
- An explicit agreement requirement to maintain joint ownership
- Stronger powers for the head of the household
- The introduction of an executor with powers to distribute the estate
- The use of succession arbitration as a faster way to resolve disputes, with the possibility of referral to the Court of Justice.
Stay in the know about living in Portugal as a foreigner—get our weekly newsletter for the latest travel, legal, and lifestyle news.
