Inherited property in Portugal: how to sell or partition when the heirs disagree

It is one of the most common deadlocks in the Portuguese property market. One heir wants to sell, another wants to keep the house, a third does not answer, and the property sits empty for years, deteriorating and paying tax. The law has a way out of each of these situations. The route chosen decides how much time and money is lost.

Before partition, who owns the house?

Succession opens at the moment of death (Civil Code, Art. 2031). Until partition, the estate is a separate pool of assets managed by the estate administrator (cabeça-de-casal) (Art. 2079). Each heir is entitled to a share of the estate, not to a specific part of each property. The practical consequence is in Article 2091(1): save where the law provides otherwise, rights relating to the estate can only be exercised jointly by all the heirs. Selling, letting long term or mortgaging the house requires everyone’s agreement.

Heirs who have not yet accepted also count. The right to accept an inheritance lapses ten years after the heir learns that they have been called to it (Art. 2059(1)).

The four routes

The heirs may also agree to keep the estate undivided for up to five years, renewable by a new agreement (Art. 2101(2)). This is useful where the aim is to let or add value to the property before selling.

How probate proceedings work without agreement

The inventário ends the joint ownership of the estate and partitions the assets (Code of Civil Procedure, Art. 1082). Whoever brings it may choose between the court and a notary’s office (Art. 1083(2)). If it is brought before a notary without everyone’s consent, heirs representing more than half of the estate may ask for it to be transferred to court, up to the end of the period for objections (Art. 1083(3)). In some cases the court is mandatory, for example where the proceedings depend on another court case or are brought by the Public Prosecutor (Art. 1083(1)).

The decisive moment is the meeting of interested parties. The judge must encourage an amicable solution. By unanimity, the heirs may allocate assets to each of them, draw lots or agree to sell all or part of the assets and share the proceeds (Art. 1111). Without agreement, the heirs bid against each other, in an auction-like process: the property goes to the highest bidder (Art. 1113(1) and (3)).

Anyone who wants to keep the house should arrange financing before the meeting. An heir who receives assets above their share pays the difference to the others in cash, and that excess is subject to property transfer tax (IMT) (IMT Code, Art. 2(5)(c)).

Selling only my share

An heir may dispose of their hereditary share without waiting for partition. The transaction follows the rules of the underlying contract (Art. 2124). If the share is sold or given in payment to a third party, the co-heirs have a pre-emption right on the same terms as co-owners. Where they have been notified to exercise it, the period is two months (Art. 2130). The sale of a hereditary share is subject to IMT (IMT Code, Art. 2(5)(c)). Whoever buys a share buys the heir’s position in the estate, not the house.

Taxes while the estate is undivided

Stamp duty and notifying the tax office. In succession on death, the tax obligation arises on the date succession opens (Stamp Duty Code, Art. 5(p)). The estate administrator must report the death to the tax office by the end of the third month following it (Art. 26(1) and (3)). The reference date is the date of death, and the period ends on the last day of the third following month: for a death in October 2026, the report must be filed by 31 January 2027. Spouses or de facto partners, descendants and ascendants are exempt from the 10% stamp duty on gratuitous acquisitions (Art. 6(e) and item 1.2 of the General Table). Other heirs pay that rate.

AIMI. For the additional property tax, an undivided estate represented by the estate administrator is treated as a legal person (IMI Code, Art. 135-A(2)). It benefits from a EUR 600,000 deduction (Art. 135-C(2)(b)) and pays 0.7% on the excess (Art. 135-F(1)). That treatment can be set aside, with each heir taxed on their share. To do so, the estate administrator declares all heirs and their shares between 1 and 31 March, and each heir confirms theirs between 1 and 30 April, on the Tax Portal (Art. 135-E(1) to (3)). Where the estate holds several high-value properties, this option may reduce the tax. Whether it pays off has to be worked out heir by heir.

Costly mistakes

• Letting it drag on. Every year of joint ownership adds AIMI on the estate and wear on the property. Over time, heirs die and the number of interested parties multiplies.
• Promising to sell or encumbering without everyone. Without the agreement of all heirs, the transaction is open to challenge by the others (Art. 2091).
• Selling a share to a third party without offering pre-emption. The co-heirs may come forward and exercise it (Art. 2130).
• Missing the reporting deadline. It runs from the date of death, not from the deed of succession.

Frequently asked questions

The firm handles partitions of estates with property, probate proceedings and sales of hereditary shares, including tax planning for the exit from joint ownership. Book a meeting.

Read also

Property taxes in Portugal: IMT, stamp duty, IMI and AIMI · Selling property without capital gains tax · Real estate lawyer in Margem Sul

General information, updated on 17 October 2026. It does not replace an analysis of the specific case and is not legal advice.