More and more foreign citizens are choosing Portugal as a place to live and invest. They purchase real estate, make investments, and forge lasting ties with the country. However, few are aware that, upon their death, the succession of their assets may be governed by Portuguese law, with consequences that differ significantly from those that would apply in their country of origin – which makes it essential to draw up a will in Portugal.
Since the entry into force of Regulation (EU) No. 650/2012, known as the European Succession Regulation, the law of the deceased’s habitual residence has been applied to their entire estate, regardless of where their assets are located.
Thus, a foreign citizen residing in Portugal may have their inheritance governed by Portuguese law, unless they have expressly stated in their will that they wish the law of their nationality to apply.
Portuguese law contains specific rules, such as those limiting the freedom to dispose of assets, imposing the obligation to reserve part of them for certain heirs, such as the spouse, children, or ascendants. These requirements may be very different from the laws of the deceased’s country of origin — some are more liberal, allowing free disposal of all assets, while others are more restrictive, where opting for Portuguese law may even prove to be an advantageous opportunity.
Making a will in Portugal is therefore a prudent and strategic measure, which avoids uncertainty as to the applicable law and provides security and predictability to foreign residents, ensuring that their wishes will be respected and executed in accordance with a legally valid instrument before the Portuguese authorities, significantly reducing the risks of conflict between jurisdictions.
Having specialized legal guidance allows you to assess the differences between laws, plan succession in a manner appropriate to the testator’s family and asset situation, advise on the most favourable law—including in tax terms—and ensure that the will complies with all legal requirements and faithfully reflects the testator’s wishes.
In addition, proper legal support ensures coordination between wills made in other countries and the Portuguese document, avoiding contradictions or nullities, and ensures proper monitoring of the entire process after the testator’s death.
At CRS Advogados, we assist foreign citizens in all stages of estate planning, ensuring clarity, accuracy, and peace of mind for those who wish to protect their assets and their wishes.
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