New Law - Undivided inheritances

The division of inherited real estate has historically been one of the greatest sources of litigation and asset paralysis in Portugal.

The core principle of the Civil Code establishes that no co-owner or co-heir is required to remain in undivided co-ownership (Articles 1412 and 2101 of the Portuguese Civil Code). In legal practice, however, inertia, lack of agreement, or the simple unjustified refusal of a single co-heir has often been enough to drag probate and partition proceedings (processos de inventário) out for years or even decades.

To address this roadblock, the Portuguese Parliament (Assembleia da República) approved, on July 17, 2026, the legislative authorization creating the Legal Framework for the Special Procedure for the Sale of Real Estate Integrated into an Undivided Inheritance and the Framework for Inheritance Arbitration—an act enacted by the President on August 7, 2026.

Key Proposed Changes

The new regulatory framework introduces substantive and procedural modifications with significant impact:

• Forced sale initiated by a single heir: Any co-heir, surviving spouse with community property rights (cônjuge meeiro), or executor (testamenteiro) holding powers of partition may initiate court proceedings under the special sale procedure for the property.

• The "2-year rule":

  • With pending partition proceedings (inventário): The request for sale may be submitted immediately, with no waiting period.

  • Without partition proceedings (inventário): The forced sale may be requested once two years have elapsed from the date the succession was opened (date of death).

• Transitional application to pre-existing estates: The framework will apply to all estates already opened and still undivided on the date the law enters into force.

• Strict protection of the family home: Any property serving as the residence of the surviving spouse or surviving de facto partner (common-law partner) is expressly exempt from forced sale without their consent.

• Reduction of the acceptance period: The statute of limitations period (prazo de caducidade) to accept or repudiate an inheritance is reduced from 10 years to 2 years.

• Inheritance arbitration: Establishment of specialized arbitration tribunals dedicated to succession and inheritance law.

Current Status and Entry into Force

The Portuguese Parliament approved the Legislative Authorization Bill, which has been enacted by the President of the Republic. Following its official publication in the Diário da República (Official Gazette), the Government has a 180-day deadline to approve and enact the implementing Decree-Law that will govern the detailed procedural steps.

The right to request this special sale procedure can only be exercised once that upcoming Decree-Law enters into force.