Will Lawyers in Portugal

Making a will in Portugal includes following several steps to ensure that the testator’s assets are distributed according to his/her wishes after his/her passing. To create a will, the testator needs to outline his/her intentions for the distribution of property and assets. Once drafted and signed in the presence of witnesses, the will becomes a legally binding document that dictates how the assets will be distributed after death. Our will lawyers in Portugal can help with will preparation so that the documents comply with Portuguese legal requirements and accurately reflect the testator’s wishes.  

Types of wills in Portugal

The wills in Portugal can be standard or special form. The standard types of wills are:

• Public wills (testamentos públicos), which are created under the supervision of a notary;
• Closed wills (testamentos cerrados, which are drawn up and signed by the testator or by another person at the testator’s request, but they must be approved by a notary.

The special types of wills in Portugal include:

• Wills made by military personnel, often in situations of conflict or during military service;
• Wills created while onboard a ship, under specific maritime laws;
• Wills made on an aircraft;
• Wills created under emergency circumstances or during times of crisis.

Additionally, a special form of will can be made by a Portuguese national abroad under foreign law, which can take effect in Portugal if it meets certain requirements.

The cost of making a will in Portugal may vary based on the will type. Our will attorneys in Portugal can explain more about the process of drafting a will. 

Inheritance tax in Portugal

Understanding inheritance tax laws is important when creating a will in Portugal, as it impacts the distribution of assets and may influence estate planning decisions.

Portugal abolished the Inheritance and Gift Tax in 2004 and replaced it with a stamp duty on transactions involving the free transfer of assets, such as inheritance.

The flat inheritance tax rate in Portugal is 10% on the value of transferred assets, applicable regardless of the amount transferred. Only transfers to natural persons are subject to taxation, as transfers to companies are exempt. The rate remains consistent regardless of the relationship between the deceased and the beneficiaries. Our Portuguese will lawyers can assist in will preparation.

Certain beneficiaries, namely spouses, unmarried (de facto) partners, descendants and ascendants, are fully exempt from inheritance tax. Unmarried partners require explicit designation when drafting the will in Portugal to qualify as heirs.

Additionally, certain assets such as life insurance, pensions and household goods are exempt (real estate is not) from inheritance tax. The main heir is responsible for filing an inheritance tax return within three months of the testator’s death.  

Our will lawyers in Portugal can help you with filing the inheritance tax returns and can provide more details regarding this subject. 

Why make a will in Portugal

Making a will in Portugal is important for several reasons. Most importantly, it allows the testator to specify how he/she wishes that assets will be distributed after passing. Without a will, the distribution of assets will be governed by Portuguese inheritance laws, which may not align with his/her wishes.

Proper estate planning, including the creation of a will, can help minimize taxes and expenses associated with the transfer of assets to beneficiaries. Understanding Portuguese inheritance tax laws allows the structure of the estate in a tax-efficient manner.

Creating a will provides peace of mind, knowing that the last wishes regarding the distribution of your assets will be followed after your passing. 

Demographics of Portugal

Some demographic factors can influence the distribution of wills and estate planning practices in Portugal. Here are some statistics for the year 2022:

• Portugal’s total population was over 10 million people;
• 4,911,677 were male inhabitants;
• 2,383,516 people were aged 65 and above;
• 5% of the total male population was aged between 70-74 years.

If you need assistance in will preparation or are interested in learning the approximate cost of making a will in Portugal, please contact our team.