Valuing inherited property in Portugal: share, sell or keep the house

A valuation of an inherited property in Portugal gives every heir the same starting point: its market value, meaning the price it would most likely sell for today.

You have inherited a property with other heirs, perhaps your brothers and sisters. Before you decide whether to sell it, keep it or buy out the others' shares, each of you needs that figure. Without it, everyone brings their own idea of the price and the discussion goes round in circles.

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Why value an inherited property in Portugal

Dividing the estate between heirs

Until the estate is divided, the property belongs to all the heirs jointly. In Portuguese this is called herança indivisa, an undivided inheritance. To bring it to an end, the heirs first need to agree on what the property is worth. Only then can they discuss who receives what.

Keeping the property and paying the others

Sometimes one heir wants to keep the property, such as the flat they grew up in. They then compensate the others for the share that goes beyond their own. In Portugal this payment is called tornas. With a market value backed by evidence, the amount is discussed on facts rather than impressions, which takes much of the heat out of the conversation.

Selling and sharing the proceeds

If the heirs would rather sell, the asking price has to reflect the market. Set it too high and the sale drags on while costs keep mounting. Set it too low and every heir loses their share of the difference. To see what will be left to share once the sale goes through, the guide to the costs of selling in Portugal goes through each item.

The costs while nothing is decided

As long as the property is neither sold nor divided, IMI (the annual municipal property tax) is still due every year. On top of that come the condominium charges and upkeep, often paid by a single heir while everyone waits. Knowing the value early helps the family reach a decision before months slip by.

Valuing an inherited property in Portugal: tax value versus market value

The caderneta predial (the property's tax record, issued by the Finanças, Portugal's tax office) shows the valor patrimonial tributário, or VPT. This is an administrative figure. It does not tell you what the property would sell for. The Finanças use it to work out IMI (the annual municipal property tax) and, when someone dies, Imposto do Selo (stamp duty, which also applies to inheritances).

Some heirs pay no Imposto do Selo on an inheritance: a spouse or partner in a união de facto (a recognised cohabiting partnership), descendants such as children and grandchildren, and ascendants such as parents and grandparents. Other heirs may have to pay it, for example a brother, a sister or a nephew. Being exempt does not remove the duty to declare. The cabeça de casal (the person who administers the estate) must report the death and the assets to the Finanças within the legal deadline, as the Portal das Finanças explains.

Market value answers a different question: the price the property would most likely fetch today. This is the figure heirs rely on when they decide whether to sell, keep the property or work out tornas (the payment one heir makes to the others to even out their shares). An older flat in Lisbon can have a VPT far removed from that price. If the heirs divide the estate on the basis of the VPT, the tornas may leave one of them out of pocket. To see how a home's price takes shape, read our guide to what a property is worth.

Valuing inherited property in Portugal: the steps from notary to land registry

1. Habilitação de herdeiros (the deed confirming the heirs). This document legally establishes who the heirs are. It is signed at a notary's office or at a conservatória (registry office). Every later step relies on it.
2. Declaration to the Finanças (the Portuguese tax authority) for Imposto do Selo (stamp duty). It must be filed even when the heirs are exempt. The exemption removes the need to pay, not the need to declare.
3. Market value of the property. With this figure, all the heirs start from the same number before discussing a sale or a buy-out of one heir's share. To see how this differs from a valuation carried out for a bank, read market study or bank valuation.
4. Division of the estate. If everyone agrees, it is signed as a notarial deed (escritura) or as a certified private document (documento particular autenticado). If no agreement is reached, it goes through an inventory procedure (processo de inventário).
5. Entry at the conservatória do registo predial (land registry). The division or the sale is recorded there, so the new owner appears on the register. If the heirs decide to sell, also check the documents you need to sell.

Frequently asked questions about valuing an inherited property in Portugal