Last Updated on 27th October 2026
Moving to Portugal as a retirement destination doesn’t simply change American citizens’ lifestyles. It may also affect how their estates are administered, how assets can be passed to future generations, and which succession and inheritance rules will apply.
Part of Portugal’s appeal is that it doesn’t impose a traditional inheritance tax. Instead, many inherited Portuguese assets are subject to a flat-rate 10% Imposto do Selo (stamp duty), although exemptions are generally available for a spouse or de facto partner, descendants and ascendants. However, this does not remove the need for US citizens to consider ongoing American estate and gift tax rules or any continuing IRS reporting obligations.
Even comprehensive pre-existing estate plans may become less appropriate after moving to another jurisdiction, which is why revisiting plans and making clear decisions is the best way to ensure retirees have confidence that their succession arrangements remain suitable.
How Estate Planning Changes for US Expats After Moving to Portugal
Estate planning shouldn’t be considered separately from retirement planning. Decisions about pensions, investments, tax residency and succession often influence one another, particularly when assets are held across more than one jurisdiction.
Reviewing them together can help ensure each aspect of a financial plan continues to support long-term objectives after a move overseas. Some of the many factors American expats who are either relocating on retirement, or who plan to retire in Portugal, should consider include:
- How their assets in Portugal, the US and elsewhere may be subject to American estate taxes, and the federal exemptions available. In effect, many estates are not exposed to federal estate tax, but this isn’t necessarily always the case.
- Portuguese stamp duty, and whether the beneficiaries are a spouse or de facto partner, descendants or ascendants who may qualify for an exemption. Leaving assets or wealth to other beneficiaries may mean needing to account for the 10% flat rate tax rate.
- How Portuguese property will pass to beneficiaries, and whether any stamp duty or administrative costs may apply depending on the nature of the assets and the inheritors involved.
Portuguese stamp duty normally only applies to assets held within Portugal itself. However, tax residents should ensure they have full oversight of all potential tax burdens payable by their estate or their heirs before making any final decisions.
Portuguese Succession Rules and Their Difference From US Laws
Portuguese succession law protects a reserved portion of an estate for specified heirs. The applicable proportion depends on the deceased person’s family circumstances.
A surviving spouse alone is generally entitled to a reserved share of one-half of the estate. A surviving spouse and descendants are generally entitled collectively to two-thirds. Where there are descendants but no spouse, the reserved share is generally one-half for one child or two-thirds for two or more children.
Where there is a spouse and ascendants but no descendants, the collective reserved share is generally two-thirds. Different proportions may apply where only ascendants survive, so specialist Portuguese legal advice should confirm the position in each case.
The remainder of the estate can be left to any beneficiary, but the exemption from Portuguese stamp duty generally applies to assets inherited by a spouse or de facto partner, descendants or ascendants.
Under the EU Succession Regulation, a US citizen may expressly choose the law of their nationality to govern their succession. The relevant US state law would then be identified under the applicable conflict-of-law rules rather than selected independently as a separate choice.
While this can remove the limitations of forced heirship, the process is complex. It must be completed correctly with professional advice and a legally valid will that sets out the intentions of the estate holder. Without a specific, recognised statement of your wishes, there is the risk that an estate will default to Portuguese succession law.
In addition, some assets, such as types of trusts, aren’t recognised in Portugal in the same way as they are in the US. This could influence expats’ decisions about whether or not to elect to have their estates handled according to US succession law, because assets in trust may be treated as personal property under the Portuguese inheritance system.
Why Portugal Estate Taxes Still Need Careful Planning
Portugal’s lack of a conventional inheritance tax doesn’t negate the need for sufficient financial planning because there are numerous potential considerations, from deciding how an estate will be managed and distributed, reviewing tax obligations and exemptions, and determining where assets are held and where they might be taxed.
Wills created in the US may need to be reviewed to ensure they remain effective after moving to Portugal. In some circumstances, expats may benefit from having separate wills covering assets in different jurisdictions, although this requires careful coordination to avoid conflicts between documents.
Expats may also need to think about:
- Whether their existing will continues to reflect their wishes
- Which country’s succession rules are likely to apply, and whether they need to take action to change this
- Whether existing investment structures remain appropriate after becoming Portuguese tax residents
- How their retirement assets and income will fit into their estate
- Whether beneficiaries are expected to inherit assets as they intend
There are further considerations which all families may need to make decisions about, from selecting executors, informing beneficiaries of the benefactor’s intentions, granting power of attorney, and assessing whether, if those arrangements have already been made in the US, they will still be considered valid in Portugal.
Planning for Portuguese Retirement Beyond Succession Law
Moving to Portugal from the US is a significant change, and along with that comes a need to be conscious of how tax residency, currency exchange rates, investment taxation, retirement products, and succession and gifting laws differ between the two jurisdictions.
Estate planning isn’t only about deciding what will happen to wealth when a person passes away, but an integral part of broader financial planning for US citizens living overseas that can help ensure family wealth is structured efficiently now and passed to future generations according to personal wishes.
Putting the right plans in place as early as possible is often advisable, giving expats sufficient time to understand all the options available to them, make informed decisions, and consult with tax and wealth management specialists in both the US and Portugal.
Contact the Chase Buchanan team in Portugal to discuss how cross-border estate and succession considerations may affect your wider financial planning. Specialist Portuguese and US legal or tax advice may also be required.
© Chase Buchanan Private Wealth Management.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID.
Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD).
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*Information correct as at October 2026
