Selling inherited or co-owned property in Portugal

Key points

The sale is possible, but heirs or co-owners must be identified, succession, tax and registration matters must be regularised, and the necessary agreement or representation obtained. Selling the whole property is not the same as transferring an inheritance right or co-ownership share.

1. Identify the exact legal position

Distinguish between an undivided estate, a property already allocated by partition, and ordinary co-ownership. Check the permanent land registry certificate and succession documents to establish who is registered and which formalities remain outstanding.

In an undivided estate, each heir has a right in the estate rather than a defined physical portion of that property. Do not treat the transfer of an inheritance right as the sale of a specific room or section of the home.

• Confirm whether the heirs have been formally identified.
• Check whether partition and registration have been completed.
• Identify every co-owner and share where co-ownership exists.

2. Regularise the estate and tax duties

The formal declaration of heirs identifies those succeeding the deceased. The Inheritance Desk can deal with identification, asset registration and an agreed partition. The estate administrator manages the undivided estate but should not be assumed to have power to sell the property alone.

Where the deceased owned assets in Portugal, the death must be reported to the Tax Authority using Stamp Duty Form 1 by the end of the third month after death. Exemptions and tax treatment depend on the beneficiary's relationship to the deceased.

• Gather identification and tax numbers for all heirs and list the assets.
• Confirm the death report and estate tax number where applicable.
• Keep evidence of identification, partition, tax and registration.

3. Confirm agreement, authority and pre-emption

A sale of the whole property requires all persons whose rights are needed to transfer title, acting personally or through valid representation. Check powers of attorney, marital property and any minors or protected persons before committing to a buyer.

If a co-owner sells only their share to an outsider, the other co-owners have a statutory pre-emption right under the Portuguese Civil Code. A defined physical part cannot be disposed of as though it were an autonomous share without the necessary consent.

• Record agreement on sale, price and distribution of proceeds.
• Validate powers and special authorisations before the promissory contract.
• Check whether statutory pre-emption applies.

4. Prepare the property and transaction

Check mortgages, attachments, tenancies, condominium debts and documentary discrepancies as well as succession. An inheritance includes assets and liabilities, so focusing only on the home's market value may conceal relevant burdens.

Before accepting a deposit, agree how debts, costs and taxes will be paid and how net proceeds will be distributed. Without agreement, partition, inventory proceedings or court involvement may be required before a safe sale can proceed.

• Update the land registry certificate and property documents.
• Identify debts, burdens, occupants and disputes.
• Record the minimum price, costs and distribution of net proceeds.

5. Complete with appropriate review

The promissory contract and completion document should correctly identify sellers, the capacity in which they act, shares, outstanding conditions and payment arrangements. Casa Pronta can complete sales and registrations, but disputes or special representation should be reviewed beforehand.

Tax consequences may differ for each seller. Inherited acquisition value, eligible costs and relevant dates should be checked individually, especially after partition payments, works, non-residence or acquisitions at different times.

• Do not sign a promissory contract until title and authority are confirmed.
• Document payment and distribution of the price.
• Obtain legal and tax advice where there is conflict or uncertainty.