Selling an inherited home in Portugal: first steps

Legal position

Understand the estate, its division and any shared ownership

An undivided estate, partition and co-ownership are different situations. In an undivided estate, heirs have rights over the estate as a whole. This does not mean each already owns a share of every house.

Partition determines which assets are allocated to each heir. It may involve equalisation payments, known as tornas, to balance the values received. If a house is allocated to several people in defined shares, they become co-owners of that property. See the options in the guide to partitioning an estate containing property.

Land registration makes the property’s legal situation public. The entries required depend on whether the estate has been partitioned and on the intended transaction. Compare the permanent registry certificate with the declaration of heirs and any partition deed. Do not assume that every sale requires partition beforehand.

The declaration of heirs formally identifies the successors. Balcão Heranças is an IRN service combining procedures for identifying heirs, partition and registration, depending on the request and applicable conditions. If you are just starting, follow the guide to dealing with an estate after a death.

Preparing the sale

Confirm agreement, representation and documents

1. 01
   Identify everyone involved

   Confirm which heirs, the person responsible for administering the estate (cabeça-de-casal), spouses and representatives must take part or give consent.

2. 02
   Reach a common decision

   Agree the price, expenses, use of the home, removal of belongings and distribution of proceeds before negotiating with third parties.

3. 03
   Update tax and land records where necessary

   Compare the declaration of heirs, estate division documents, property tax record and land registry certificate (certidão permanente predial). Resolve discrepancies before the final contract.

4. 04
   Gather relevant dates and values

   Keep succession records, the taxable property value, expenses and documents for work on the property so that the tax position can be assessed correctly.

Tax

Do not apply a generic formula to capital gains

Tax treatment may vary depending on whether the transfer concerns a property already allocated when an estate was divided, a share in a property or an inheritance share, as well as the relevant dates and values. Confirm the specific treatment with the Tax Authority or a qualified professional.

It should also be clear who pays outstanding expenses, Portugal’s annual municipal property tax (IMI), condominium fees, works and other charges until the sale.