Portugal authorizes government to reform undivided inheritance laws

The Portuguese Government has been granted 180 days to approve a new legal regime designed to resolve deadlocks in undivided inheritances. Following the promulgation of Law No. 49/2026 by President António José Seguro, the government is authorized to establish special processes for the urgent sale of real estate within undivided estates and to implement a legal regime for succession arbitration.

The reform aims to prevent properties from deteriorating due to long-term legal stalemates caused by a single heir blocking the division of assets. Under the new rules, any heir or surviving spouse can request the judicial sale of real estate if there is no agreement among heirs. To protect family interests, the family home is excluded from this special sale process unless the widow, widower, or partner in a de facto union provides express consent.

Additionally, the legislation introduces the figure of a testamentary executor with powers of partition, allowing a third party to centralize the administration, liquidation, and division of the estate to expedite the process. The law also modifies the Civil Code and the Code of Civil Procedure, applying to all open and unpartitioned inheritances at the time the new regulations enter into force.