The Government has approved new legislation to resolve inheritance disputes that leave properties and rural land tied up for years, potentially preventing them from being sold, rented out, or put to use.

António Leitão Amaro, Minister of the Presidency, announced the new decree-law approved by the Council of Ministers on Thursday, 22 October.

As reported by ECO, the new framework introduces a special procedure for selling properties held in undivided estates when beneficiaries cannot agree on what to do with them.

This reform aims to address a problem the Government says contributes to the country’s housing shortage.

According to the 2021 Census figures cited by the executive, Portugal has around 485,000 vacant homes, more than half of which are reportedly in good condition but are not intended for sale or rent.

Leitão Amaro argued that disagreements between just one or two family members can prevent otherwise usable properties from reaching the market.

The issue also extends to the countryside, where the Government estimates that 3.4 million rural land plots remain tied up in undivided inheritances. Such disputes can leave land unmanaged, including in areas where a lack of maintenance may increase the risk of wildfires.

Sale request

Under the new rules, a single heir can request the sale of a property in an undivided estate once the applicable two-year period has elapsed without an agreement.

Previously, a disagreement between beneficiaries could leave the entire process at a standstill, even when other heirs wanted to sell or divide the assets.

The new procedure seeks to break that deadlock while ensuring properties sell at market value, using independent valuations to establish the property’s worth and an electronic auction as the main route to sale if no private agreement is reached.

Moreover, heirs will have six months to try to settle the dispute or arrange a private sale before the auction stage.

The legislation also gives heirs the opportunity to retain the property themselves, including through the applicable right of preference, rather than automatically losing the chance to acquire it when a sale is initiated.

Family homes

This reform includes safeguards for vulnerable situations, such as excluding a property used as the family home from the special sale procedure unless the surviving spouse or partner expressly consents, including couples in legally recognised de facto unions.

Furthermore, insolvent estates are also excluded from the special process.

These rules aim to provide a route out of prolonged disputes without removing protections for those affected by the sale of inherited assets.

The decree law also introduces an executor with powers to oversee the division of an estate.

This appointment is intended to centralise responsibilities for administering, settling, and distributing inherited assets, reducing how much progress depends on the heirs agreeing on every step.

The Government is also introducing a succession arbitration framework for disputes covered by the new arrangements, hoping these measures will reduce lengthy court proceedings and make inheritance settlements more straightforward.

Special procedure

These reforms follow the passage of Law No. 49/2026, published on 17 August, which authorised the Government to introduce the special property sale procedure and amend the Civil Code and Code of Civil Procedure.

This framework aims to address existing cases and future inheritances, meaning families already dealing with unresolved estates could benefit from the new mechanism, subject to applicable legal conditions.

The Government says the objective is to make better use of Portugal’s existing housing stock and rural land while reducing the number of estates left unresolved for years or even decades.

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