🏠️ Why Expats in Portugal Should Prioritize Inheritance Planning Now— Part 2

Happy Sunday, friends!

We’ve all heard the saying, “Things have a way of working out.” And in hindsight, that usually feels true. But since moving to Portugal, I often find myself wondering... is this it? Is this resolved? Or is this just the beginning of a very slow-moving process?

When the doctor shrugged about the surgery, was that a yes, a no, or a maybe come back next year? Or when the plumber looked at the pipes in the house and said, “It’s normal,” was that code for “fix this immediately” or “don’t worry, it’s fine?” And when the accountant said, “I’ll call you if there are any issues,” does the silence mean all is well… or that I should be quietly panicking?

There seems to be a delightful (read: maddening) ambiguity that underpins most interactions in Portugal. And sometimes it drives you nuts.

So in today’s newsletter, I’m asking: What are the moments that left you scratching your head? Share your quirks, confusions, and culture-shock stories. I’ll round them up for an upcoming issue and, hopefully, we’ll laugh (or cry) together.

Also in this issue: Part 2 of our estate planning mini-series, because when we eventually head off to play harps on a cloud somewhere, we’d rather not leave our kids with a chaotic inheritance puzzle, dealing with an accountant who will “call you” and a lawyer giving them the shrug.

Enough ambiguity, let’s dive into today’s edition:

⛵️Upcoming events for May

❓️ Is this Normal? Share you’re not-so-normal moments with us!

💰️Inheritance & Estate Planning for Expats, Part 2 

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Share this newsletter with just one friend today. You won’t just be helping them stay in the loop on events and taxes (and all the other fun stuff no one talks about), you’ll be helping me grow The Expat Hustle community. Which would really make my day 😃 

📷 Pic of the week

The Bussaco Palace, Coimbra: Tucked into a lush forest just north of Coimbra, the Bussaco Palace is a real-life fairy tale castle turned hotel. Built between 1888 and 1912 for Portugal’s last kings, this Manueline-Gothic masterpiece sits on the 250-acre Bussaco National Forest originally planted by the Barefoot Carmelites in the 17th century.

📰 What’s Happening

ENDURANCE SPORTS

Ride Across Portugal: 11–15 May. This year's Ride Across Portugal covers 730 km over six stages, with a staggering 9,800 meters of elevation gain. The route kicks off along the N222, once voted the "Most Beautiful Road in the World," and includes a climb to Alto da Torre, the highest point in mainland Portugal at 1,993 meters. Missed the start of this epic cycling adventure? No worries—mark your calendar for the Ride Across Douro-Minho in September later this year.

Lagoa Swimrun (18 May 2025, Porches, Algarve): Athletes race along Portugal’s stunning Algarve coast, alternating swims in crisp 18°C waters with runs on dramatic cliffside trails. With both sprint (12.7 km) and standard (26.3 km) distances, this event is a unique adventure through some of Portugal’s most beautiful and challenging coastal landscapes.

MOTORSPORTS

Vodafone Rally de Portugal (WRC): (5–18 May 2025) One of the most prestigious motorsport events in Portugal, part of the World Rally Championship, attracting top international teams and fans

FOOD & WINE (…& BEER)

Hopen Braga Beer Festival (May 30 - June 1st, Braga): Held annually in early summer, this is the third largest beer festival in Portugal, featuring over 20 microbreweries, hundreds of different beers, street food, live music, workshops, and more.

The Museu da Cerveja's Craft Beer Fest, Mar-Sep 2025, Lisbon: It is the first national event dedicated entirely to Portuguese craft beers, featuring weekly tastings, brewery presentations, and fun beer-themed games that challenge your knowledge and palate-perfect for discovering new favorites and the stories behind them.

EXPOSICÓ - XXXV Feira do Queijo Rabaçal (24-25 May, Soure, Coimbra): The fair brings together around 70 exhibitors, including cheese producers, winemakers, olive oil and honey producers, and local artisans. One of the highlights is the presentation of the “largest Rabaçal cheese in the world,” made with 500 liters of milk and shared among visitors.

MUSIC & CULTURE

Dia da Marinha 2025 (May 14-20, Viana Do Castelo): Celebrated annually in Viana do Castelo, Dia da Marinha commemorates Vasco da Gama's 1498 arrival in India with naval exhibitions, concerts, and ship tours, including the iconic Navio-Escola Sagres, offering visitors a unique glimpse into Portugal's rich maritime heritage.

MOGA Caparica (May 28 – June 1, Praia da Morena, Costa da Caparica, about 20 minutes south of Lisbon): a boutique electronic music festival inspired by Atlantic beach vibes, blending dance, music, art, and wellness. The event is known for its immersive experience, bringing together international artists and festival-goers

Leiria Fair,(1-31 May, Leiria): one of Leiria, Portugal’s biggest yearly events, offering a lively mix of concerts, amusement rides, and food stalls. It celebrates the city's spirit and traditions, attracting visitors from near and far. With roots stretching back to the time of King Afonso Henriques and an official charter established in 1295, the fair is steeped in history and local pride.

Coala Festival, Cascais (May 31–June 1): a major celebration of Portuguese-language music, culture, and diversity. Originating in Brazil, the festival is known for spotlighting both established and emerging artists from across the Portuguese-speaking world, uniting influences from Africa, Brazil, and Portugal in a unique musical experience.

The Gipsy Kings, led by founding member Diego Baliardo, will return to Portugal for a series of highly anticipated concerts in May 2025. The confirmed dates and venues are:

• Coliseu Porto Ageas, Porto: May 22, 2025

• Coliseu dos Recreios, Lisbon: May 23, 2025

• Casino Estoril, Estoril: May 28, 2025

• Coliseu Micaelense, Azores: May 30, 2025

LAAF 2025: Lisbon’s Premier Art and Antiques Fair (May 9 to 17, Lisbon): A prestigious event for collectors and art lovers, featuring antique dealers and galleries in Lisbon.

🏡 Lifestyle: Eat, Pray, Love—and everything in between

🤔Is This Normal?

Life in a new country comes with all sorts of weird and wonderful adjustments. And let’s be honest, some things are just plain confusing. We're here to unpack the quirks of everyday life in Portugal, from the charming to the downright bizarre.

So tell me:

❓️What’s the strangest thing that’s happened to you since moving here?

❓️What was the most ridiculous thing you had to Google?

❓️Still unsure whether to flush the toilet paper or bin it after a public bathroom run?

Hit reply and spill your awkward, hilarious, or head-scratching moments. I’ll share the best (or weirdest) in an upcoming issue (anonymously… unless you want your moment of fame).

Show us some ❤️‍🔥

Enjoying The Expat Hustle? I’d love it if you could rate this newsletter via the link below! And if you have 5 extra minutes, a quick testimonial would seriously make my day. It helps me connect with more expats who could use the tips and support we’re all sharing here. Thank you!

💰 The Hustle Fund — Money, Taxes, and all things Financial

👋 Welcome back to Part 2 of our inheritance deep dive with FRESH Portugal. Last week, we tackled the first part of this 2-part series on inheritance & estate planning for expats in Portugal and we covered these critical topics:

✅ The Basics of Inhertican & Estate Planning

✅ Wills & Estate Planning

✅Forced Heirship Rules

This time, it gets juicier. We’re talking taxes, dealing with local assets, and pitfalls to avoid.

Let’s hand things over once again to the experts for today’s article:

📜 Part 2: Inheritance & Estate Planning in Portugal

Inheritance Tax & Financial Implications

What are the inheritance tax (Imposto do Selo) rates in Portugal, and who is subject to them?

Portugal does not have a general inheritance tax. Instead, applies Imposto do Selo (“Stamp Duty”) on some inheritances and gifts. The standard rate for inheritance and gift taxes in Portugal is generally 10% on the value of the estate, however, certain heirs enjoy Stamp duty exemptions.

Are spouses and children exempt from inheritance tax in Portugal?

The surviving spouse is exempt from inheritance tax on assets inherited from the deceased spouse. Also, direct descendants as children and grandchildren are exempt from inheritance tax when they inherit from their parents or grandparents.

How are non-family members (such as unmarried partners) taxed on inherited assets?

In Portugal, non-family members, such as unmarried partners (exept if they are in a civil partnership), are subject to a 10% Stamp Duty rate.

🏡 Handling Portuguese Property & Assets

How is real estate transferred to heirs, and what legal steps must they follow?

The first step should be to obtain the death certificate of the deceased and verify the existence of any will. The heirs must have a Portuguese taxpayer number and sign a public deed with a notary to transfer the real estate ownership of the property, and afterward, the property ownership must be updated in the Portuguese Land Registry. It is also important to ensure that, if due, all applicable taxes are paid.

What are the potential costs (taxes, notary fees, etc.) involved in inheriting property?

These costs depend on various factors, such as the value of the property, the relationship between the deceased and the heir, and whether the heir is a tax resident or non-resident in Portugal. Therefore, it is complex to provide an exact calculation. The involvement of a Portuguese lawyer or notary is highly recommended to guide the process and ensure compliance with local laws.

If heirs live outside Portugal, what challenges might they face when inheriting property or assets?

For non-resident heirs, inheriting property in Portugal requires navigating a series of legal, financial, and bureaucratic burdens, including inheritance tax, legal requirements, property management and the challenge of dealing with a foreign language. Portuguese lawyers, notaries, and tax professionals should be involved to guide them through the process and ensure global compliance.

🛑 Special Cases & Avoiding Pitfalls

How are jointly owned properties handled in the event of an owner’s death?

If the property is held in joint tenancy in the context of married couples or civil partnerships, the surviving co-owner automatically inherits the deceased co-owner’s share of the property. No inheritance tax on the transfer of the deceased’s share of the property will apply in those cases.

What happens to bank accounts and other financial assets when an expat passes away?

In Portugal, bank accounts and financial assets are frozen upon the death of the account holder until the heirs have gone through the necessary legal steps. However, joint accounts usually pass to the surviving account holder automatically, while individual accounts need to go through previous legal steps to determine the heirs.

Are there specific legal structures (such as trusts or holding companies) that expats can use for estate planning in Portugal?

Expats in Portugal can use foreign trusts, Portuguese holding companies, and other estate planning structures like life insurance and wills to manage their assets and plan for succession while always complying with Portuguese regulations.

What are the biggest mistakes expats make regarding inheritance and estate planning in Portugal?

Expats often assume that a will from their home country will be sufficient to cover their Portuguese assets. This is a common misunderstanding, as foreign wills may not automatically be valid under Portuguese law. It must first be ensured that the foreign will meets the legal requirements in Portugal, such as being in the correct language and properly signed, witnessed, or notarized. In addition, a Portuguese will should be created to specifically address Portuguese assets, as local law requires clear instructions on how assets in Portugal are to be managed.

In matters of inheritance and estate planning, forced heirship laws, tax considerations, real estate management, and the need for valid Portuguese wills are just a few of the grey areas where mistakes can occur. By working with Portuguese legal professionals and planning carefully, expats can avoid many common pitfalls.

🏡 

🎯 That’s a wrap on our inheritance mini-series. A big thanks to the team at FRESH Portugal for breaking it down. If this stirred up questions (or panic), don’t sit with it. Reach out to the FRESH team for legal advice tailored to your situation.

With thanks to our collaborators: Olga Neto, Head of Communication at FRESH Portugal, for her valuable insights and contributions to this article.

The tax team at Fresh Portugal is a highly skilled and experienced group, with deep expertise in both domestic and international tax law. Specializing in tax consulting, litigation, and planning, the team focuses on areas such as digital nomad taxation, crypto, and expat tax services. Additionally, the team has a strong background in private client services, tax compliance, delivering comprehensive and innovative solutions.

Email: [email protected]

🗣 Lost in Lingo

Since today’s theme is all about cutting through ambiguity, we’ve also included a short language video to help you feel more confident at the bank. From opening an account to asking about charges, these Portuguese phrases will make your next bank visit a little less mysterious.

…And That’s All Folks

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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