Estates with Assets in Brazil and in Portugal: What Changes in 2026

More and more Brazilian families hold assets on both sides of the Atlantic: an apartment in Lisbon or the Algarve, an account at a Portuguese bank, shareholdings in companies, and at the same time real estate and investments in Brazil. When a family member dies, this geographical split is no longer a detail. The estate comes to involve two possible laws, two procedures and two tax systems. In 2026, the entry into force of Complementary Law 227/2026 (Lei Complementar) made the topic even more relevant, because it defined, for the first time in a complementary law, which Brazilian state collects ITCMD (Brazilian state tax on inheritances and gifts) when there is a foreign element.

Which law governs the succession

In Portugal: the European Succession Regulation

For successions opened on or after August 17, 2015, Portugal applies Regulation (EU) No 650/2012. The general rule is the law of the State of the deceased's habitual residence at the time of death, applicable to the succession as a whole (Article 21(1)), unless there is a manifestly closer connection with another State (Article 21(2)). The Regulation applies even when the law designated is that of a country outside the European Union, such as Brazil (Article 20).

The Regulation also allows a person to choose, in a will, the law of the State of their nationality to govern their entire succession (Article 22). Anyone with dual nationality may choose either of them.

In Brazil: the law of domicile

Brazil does not apply the European Regulation. Under Art. 10 of the Law of Introduction to the Norms of Brazilian Law (LINDB), succession is governed by the law of the country in which the deceased was domiciled, whatever the nature and location of the assets. Paragraph 1 of the same article, reproduced in Art. 5, XXXI, of the Constitution, protects the Brazilian spouse and children when the personal law of the foreign deceased is less favorable to them.

In practice, for Brazilians living in Portugal, both systems usually point to Portuguese law. However, a choice of Brazilian law in a will, valid in Portugal, has no basis in the LINDB. It may therefore happen that one law is applied in Portugal and another in Brazil. This potential divergence should be assessed before the will is drafted.

Two inventory proceedings, one in each country

Even when there is only one applicable law, there are two procedures. Art. 23, II, of the Brazilian Code of Civil Procedure (CPC) reserves to the Brazilian courts, to the exclusion of any other, the inventory and partition of assets located in Brazil, even if the deceased was domiciled abroad. A Portuguese decision on those assets will not be recognized in Brazil.

• In Brazil: if all heirs have legal capacity and agree, the inventory may be made by public deed at a notary's office, with a lawyer (Art. 610 of the CPC). CNJ Resolution 35/2007, as amended by Resolution 571/2024, now also allows the out-of-court route in certain cases involving a minor heir or a will, but prohibits an inventory deed covering assets located abroad (Art. 29).
• In Portugal: heir status may be declared through a notarial declaration of heirs (habilitação notarial), which serves as title for registrations and to access bank accounts. If there is agreement, the partition may be made by deed or through the Inheritance Desk (Balcão das Heranças); without agreement, inventory proceedings are used, in the courts or at notary's offices.

Brazil and Portugal are both parties to the Apostille Convention, which makes it easier for certificates and notarial deeds to be used across borders. The European Certificate of Succession, however, has no effect of its own in Brazil.

ITCMD in 2026: what Complementary Law 227/2026 (LC 227/2026) changed

The Brazilian Constitution requires a complementary law to govern the collection of ITCMD (Brazilian state tax on inheritances and gifts) when the donor is domiciled abroad or when the deceased owned assets, was resident or domiciled, or had the estate inventory proceedings (inventário) conducted abroad (Art. 155, § 1, III). Constitutional Amendment 132/2023 (Emenda Constitucional) introduced a transitional rule (Art. 16) and made the tax mandatorily progressive according to the value of the hereditary share, the legacy or the gift.

Complementary Law 227/2026 (Lei Complementar), published on January 14, 2026, established the general rules for the tax. Among other points, it set the tax base at market value (Art. 152), minimum criteria for valuing company quotas and shares (Art. 154) and progressive rates by brackets (Art. 156). For those living in Portugal, the most relevant provisions are the rules on which State has taxing jurisdiction:

• Real estate in Brazil: the tax is due to the State where the property is located, even if the deceased resided abroad (Art. 158, I).
• Real estate abroad: to the State of the deceased's domicile, if the deceased was domiciled in Brazil; if the deceased resided abroad, to the State of the heir's domicile (Art. 158, II).
• Movable assets, investments and equity interests: if the deceased was domiciled abroad, to the State of the heir's domicile; if the heir also lives outside Brazil, to the State where the assets are located (Art. 159).

LC 227/2026 also provides that the tax does not apply to private pension plan and insurance benefits (Art. 150, III). The actual rates and the method of collection, however, depend on each State's law, which must be brought into line with the new general rules. For this reason, the analysis must be done State by State, as state legislation comes to govern each situation.

Stamp Duty in Portugal

Portugal does not have a tax called an inheritance tax. Gratuitous transfers, whether on death or by gift, are subject to Stamp Duty (Imposto do Selo) at a rate of 10% (item 1.2 of the General Table of the Stamp Duty Code), levied on assets deemed to be located in Portugal, such as real estate, accounts with Portuguese banks and, in certain cases, equity interests in Portuguese companies.

• Exemption for close family: the spouse or de facto partner, descendants and ascendants are exempt from item 1.2 (Art. 6(1)(e)). Siblings, nephews and nieces and other heirs are subject to the 10% rate.
• Gift of real estate: item 1.1, at 0.8%, is added, and it applies even to gifts to children or to the spouse.
• Reporting obligation: even where an exemption applies, the estate administrator (cabeça-de-casal) must report the death and the assets to the Portuguese Tax Authority (Autoridade Tributária, "Finanças") by the end of the third month following the death (Art. 26).

In theory, the same asset may be reached by the taxes of both countries, for example a property in Portugal left by someone domiciled in Brazil. Whether there are mechanisms to avoid this double taxation depends on the law of the competent Brazilian State and must be checked case by case.

Why plan

Leaving it to the heirs to organize the succession hands them difficult decisions, made under deadlines and often amid family disagreements. Planning during one's lifetime allows the owner of the assets to consider calmly issues such as:

1. The applicable law and the consequences of a possible choice of law in a will, given the differences in the forced heirship share (legítima): with a spouse and children, the portion that can be freely disposed of is one half in Brazil and one third in Portugal.
2. Coordinated wills in both countries, drafted so that one does not unintentionally revoke the other.
3. Ownership of the assets and instruments such as gifts with reserved usufruct, corporate structures and insurance, always with an analysis of the taxes due in each country.
4. The documents the heirs will need to gather and apostille for the proceedings in Brazil and in Portugal.

There is no one-size-fits-all model: each instrument has its own civil and tax effects.

The Sene & Araújo team, with offices in São Paulo and Albufeira, assists with succession planning and inheritance proceedings in Brazil and Portugal. If your family has assets in both countries, learn about our work in international succession (cross-border inheritance) and talk to our team for a review of your case.

• Regulation (EU) No 650/2012 (Arts. 20, 21 and 22)
• Decree-Law 4,657/1942 (Decreto-Lei) — LINDB, Brazil's Law of Introduction to the Rules of Brazilian Law (Art. 10)
• Brazilian Federal Constitution (Constituição Federal) (Art. 5, XXXI; Art. 155, § 1)
• Constitutional Amendment 132/2023 (Emenda Constitucional) (Art. 16)
• Complementary Law 227/2026 (Lei Complementar) (Arts. 150 to 159)
• Law 13,105/2015 (Lei) — Code of Civil Procedure, CPC (Arts. 23 and 610)
• CNJ Resolution 35/2007 (Resolução CNJ), as amended by Resolution 571/2024 (Art. 29)
• Stamp Duty Code and General Table (Código do Imposto do Selo e Tabela Geral) — Law 150/99 (Arts. 6 and 26; items 1.1 and 1.2)
• Notarial Code (Código do Notariado) — DL 207/95 (Articles 82 to 86)
• Portuguese Civil Code (Código Civil) (Arts. 2156 to 2162 — forced heirship share)

Sene & Araújo Sociedade de Advogados team. Content prepared and reviewed by the firm's lawyers, admitted to the Brazilian Bar Association (OAB) and the Portuguese Bar Association (Ordem dos Advogados), with offices in São Paulo and Albufeira. The provisions cited were checked against the official sources listed above. Meet the team.