4-5 minutes
International mobility has made successions involving several countries increasingly common.
This is the case of a foreign citizen who resides in or owns property in Portugal, a Portuguese citizen residing abroad, or a family whose heirs, bank accounts, company shareholdings, and real estate are spread across different States.
These situations are particularly common in Almancil and other areas of the Algarve, due to the large number of foreign citizens who live in the region, own property there, or maintain personal and financial ties to Portugal.
In these cases, the first question is not simply where the assets are located. It is necessary to determine which law applies to the succession, which authorities have jurisdiction, and what procedures must be carried out in Portugal and abroad.
Owning a house in Almancil, an apartment in the Algarve, or any other property in Portugal does not, by itself, mean that the entire estate is governed by Portuguese law.
In summary
In transnational successions, the location of the assets is not the only relevant factor.
As a general rule, the law of the country where the deceased had their habitual residence at the time of death applies, unless they validly chose the law of their State of nationality.
The applicable law can determine:
- who the heirs are;
- what share of the estate belongs to each one;
- whether there are forced heirs;
- what portion of the estate can be freely allocated by will;
- who is liable for the debts of the estate;
- how the division of assets should be carried out.
The European Certificate of Succession can make it easier for heirs to exercise their rights in different Member States, but it does not remove the tax, reporting, and registration obligations that exist in each country.
For this reason, an international inheritance involving assets in Portugal should be handled in a coordinated way, especially when the deceased lived in the Algarve, held foreign nationality, or left heirs outside Portugal.
What is a transnational succession?
A succession is transnational when it has a meaningful connection to more than one country.
This can happen when:
- the deceased lived in a country different from the one of their nationality;
- the heirs live in different States;
- there are properties, bank accounts, or company shareholdings in several countries;
- the deceased had a residence in Portugal and another abroad;
- a will was made in a country different from the one where the deceased lived;
- there are potentially incompatible succession documents;
- the law applicable to the estate does not match the law of the country where the assets are located.
In the Algarve, these situations often arise when someone spends a significant part of the year in Portugal, owns a home in Almancil, Loulé, Quinta do Lago, Vale do Lobo, or another part of the region, while also maintaining family, income, or assets in another country.
They can also occur in other regions of Portugal, whenever the succession has personal, family, or financial ties to different States.
The first step, therefore, is to identify all the relevant connections in the succession before starting the process of confirming heirs, dividing the estate, or registering the assets.
What is the habitual residence rule?
Regulation (EU) No. 650/2012, which applies to successions opened since 17 August 2015, establishes as a general rule that the succession is governed by the law of the State where the deceased had their habitual residence at the time of death.
As a rule, the authorities of the Member State of the deceased’s habitual residence also have jurisdiction over the succession, even if assets are located in other countries.
Habitual residence does not necessarily correspond to:
- nationality;
- tax residence;
- the formally registered address;
- the country where the most valuable property is located;
- the place where the deceased spent holidays;
- the State where the deceased stayed for an isolated number of months.
Determining it requires an overall assessment of the deceased’s life.
Among other factors, the following should be considered:
- the length and regularity of stays in each country;
- the reasons for those stays;
- the location of family and social life;
- professional activity;
- the main personal and financial interests;
- the intention shown by the deceased;
- the existence of a close and stable connection with a given State.
A person may, for example, own a house in the Algarve and stay regularly in Portugal without this country necessarily being considered their habitual residence.
The opposite is also possible: even while keeping the nationality, bank accounts, and other ties to another country, Portugal may be considered the effective center of that person’s life.
This analysis is particularly important in the successions of people who lived in Almancil or elsewhere in the Algarve, because how habitual residence is classified can completely change the law applicable to the estate.
Is it possible to choose the applicable law?
Yes.
A person can choose to have their succession governed by the law of their State of nationality, either at the time of the choice or at the time of death.
Where a person holds several nationalities, the law of any of those States may be chosen.
The chosen law may even be that of a country outside the European Union.
This choice must be expressly stated in a will or result unambiguously from its provisions.
Choosing the applicable law can be especially relevant for foreign citizens living in Portugal, including in the Algarve.
Without a valid choice, the succession may end up subject to Portuguese law if Portugal is considered the State of habitual residence at the time of death, even if the deceased kept the nationality of their country of origin.
The will must, however, be carefully drafted. A vague reference to national law, or the use of a foreign template without analysis under the European Regulation, may not produce the intended result.
What matters are governed by the applicable law?
The law determined under the Regulation governs, in principle, the entire succession.
It can determine, in particular:
- who the heirs are;
- the shares owed to each heir;
- the rights of the surviving spouse;
- the rights of descendants and ascendants;
- capacity to inherit;
- acceptance or rejection of the estate;
- liability for debts;
- the powers of heirs and the executor;
- the disposable portion;
- the reserved share (forced heirship);
- the reduction of gifts or bequests;
- how the estate should be divided.
The law applicable to the succession must, however, be distinguished from the rules on registration, taxation, or the formal transfer of certain assets.
Thus, even if the succession is governed by a foreign law, registering a property located in Almancil, the Algarve, or anywhere else in Portugal will still require compliance with Portuguese formalities.
What happens when Portuguese law applies?
If the succession is governed by Portuguese law, the rules on the reserved share (legítima) must be respected.
The reserved share is the portion of the estate that the deceased cannot freely dispose of, because it is set aside for forced heirs.
In Portugal, forced heirs are:
- the spouse;
- descendants;
- in the absence of descendants, ascendants.
This means the person leaving the estate cannot always leave their entire estate to a single person through a will.
Applying Portuguese law can therefore produce a different result from what the deceased expected based on the law of their country of origin.
It can affect, for example:
- the rights of children;
- the position of the spouse;
- the protection of children from different relationships;
- the rights of a de facto partner;
- the practical validity of testamentary provisions;
- the distribution of property located in Portugal.
A lack of planning can therefore lead to family conflict and to results contrary to the deceased’s wishes.
What is the European Certificate of Succession for?
The European Certificate of Succession allows heirs, legatees, executors, and estate administrators to prove their status and exercise their rights in another Member State covered by the Regulation.
It can be used to:
- demonstrate heir status;
- prove the inheritance share;
- exercise administrative powers;
- unblock bank accounts;
- register property;
- carry out acts related to assets located in another country.
Consider, for example, a case where the deceased lived abroad but left a house in the Algarve. The European Certificate of Succession can make it easier to prove heir status to banks, land registries, and other Portuguese entities.
In Portugal, the certificate can be requested at a Balcão de Heranças (Inheritance Desk).
It does not necessarily replace all national succession documents, but it can considerably simplify the settlement of estates with assets in different countries.
What about inheritance taxes?
The European Succession Regulation does not cover tax matters.
Each State applies its own tax rules to the assets and rights under its jurisdiction.
In Portugal, gratuitous transfers of assets may be subject to Stamp Duty, generally at a rate of 10%.
The spouse or de facto partner, descendants, and ascendants, however, benefit from an exemption from this tax.
The exemption does not necessarily remove reporting obligations.
When a transfer must be reported in Portugal, the death and the transferred assets must be reported to the Tax Authority within the legal deadline.
In a succession involving a house in Almancil, Portuguese bank accounts, or shares in a Portuguese company, it may be necessary to comply with obligations in Portugal even if the law applicable to the succession is foreign.
There may also be tax obligations in the country of residence of the deceased or of the heirs. The same estate must therefore be reviewed in every relevant jurisdiction.
Why are these issues especially relevant in the Algarve?
The Algarve has a significant number of foreign residents, non-resident owners, international families, and people who split their lives between Portugal and other countries.
It is common to find situations where:
- the deceased lived in the Algarve but held foreign nationality;
- there was a house in Portugal and other assets in the country of origin;
- the children or other heirs live abroad;
- wills were made in different States;
- the Portuguese property is used only part of the year;
- there is doubt about the place of habitual residence;
- the heirs are unfamiliar with Portuguese procedures;
- documents issued by foreign authorities need to be coordinated.
In areas such as Almancil, Quinta do Lago, Vale do Lobo, and Loulé, a succession may involve significant real estate and legal ties to several jurisdictions.
In these circumstances, having a lawyer nearby in the Algarve is useful not only for giving advice, but also for handling the steps that must be carried out locally, including:
- contact with land registries;
- confirmation of heirs;
- obtaining documents;
- registering property;
- reporting the estate to the Tax Authority;
- representing heirs in Portugal;
- liaising with foreign banks, notaries, and professionals.
For anyone looking for a lawyer in Almancil or the Algarve to handle an international inheritance, it is important to confirm that the support covers both determining the applicable law and carrying out the practical steps required in Portugal.
Advance planning prevents conflict
In a transnational succession, it is essential to review in advance:
- habitual residence;
- the nationalities involved;
- the location of the assets;
- the existence of wills;
- the validity of testamentary provisions;
- whether it is advisable to choose the applicable law;
- the rights of forced heirs;
- tax and registration obligations;
- the need to coordinate procedures across several countries.
Coordination between different legal systems should be done before death, whenever possible.
A poorly drafted will, an invalid choice of law, or a lack of planning can lead to conflict between heirs, duplicated procedures, extra costs, and delays in transferring assets.
Even after death, a proper initial review makes it possible to set a single strategy and avoid incompatible procedures being started in several countries at once.
Frequently asked questions about transnational successions
I own a property in the Algarve. Does Portuguese law apply automatically?
No.
The location of the property does not, by itself, determine the law applicable to the whole succession.
As a rule, the law of the State where the deceased had their habitual residence at the time of death applies, unless they validly chose the law of their nationality.
The property will, however, still be subject to Portuguese registration and tax formalities.
Can a foreign citizen living in Almancil choose the law of their own country?
Yes.
They can choose the law of their State of nationality through a will, even if that country is not part of the European Union.
The choice must be express or result unambiguously from the provisions of the will.
Can I choose Portuguese law to govern my estate?
Portuguese law can be chosen by someone who holds Portuguese nationality at the time of the choice or at the time of death.
Simply residing in Portugal or owning property there does not, by itself, allow someone to freely choose Portuguese law.
Does tax residence determine the law applicable to an inheritance?
Not necessarily.
Tax residence is a factor that may be taken into account, but habitual residence is determined through an overall assessment of the deceased’s personal, family, social, and professional life.
Does the European Certificate of Succession replace the confirmation of heirs?
Not necessarily.
The certificate allows successors to prove their status and rights in other Member States, but it does not automatically remove all national procedures.
Do children pay Stamp Duty on an inheritance in Portugal?
Descendants generally benefit from an exemption from Stamp Duty on gratuitous transfers.
However, there may still be reporting obligations and costs related to settling, dividing, or registering the assets.
Do I need to travel to Portugal to handle the inheritance?
Not always.
Many steps can be prepared or carried out through a power of attorney, depending on the nature of the procedure and the documents available.
The need to travel should be assessed on a case-by-case basis.
Where can I find a lawyer for an international inheritance in the Algarve?
URB Law Services provides legal support in transnational successions from its office in Almancil, including situations involving property, bank accounts, heirs, or documents located in Portugal and abroad.
How can URB Law Services help?
URB Law Services, a law firm based in Almancil, provides legal support to Portuguese and foreign citizens in successions, inheritances, and estate planning involving international elements.
Our team can help with:
- identifying the law applicable to the succession;
- analyzing the deceased’s habitual residence;
- analyzing the nationalities involved;
- preparing and reviewing wills;
- choosing the applicable law;
- assessing the rights of heirs;
- analyzing the Portuguese rules on forced heirship;
- obtaining the European Certificate of Succession;
- confirmation of heirs;
- dividing and registering property in Portugal;
- settling inherited property in Almancil and elsewhere in the Algarve;
- representing heirs living abroad;
- liaising with lawyers, notaries, and other entities in other countries;
- analyzing the tax obligations associated with the estate;
- judicial or out-of-court resolution of succession disputes.
Our office in Almancil allows us to provide local support for successions involving property and families based in the Algarve, without losing sight of the necessary coordination with the foreign jurisdictions involved.
Timely legal support can reduce conflict, avoid duplicated procedures, and ensure that the transfer of assets is carried out more simply and safely.
Contact us to find out more.
22nd of July, 2026
