Inherited Property with Usufruct in Portugal: Can Heirs Sell It?

If you have inherited a property in Portugal and then discover that “there is a usufruct on it”, you may not own what you thought you owned.

This is one of the most common surprises for foreign heirs. You may appear as an heir or owner in the inheritance process, but another person may still have the legal right to live in the property, rent it out, collect the income and prevent a normal full-value sale.

That right is called usufruct, or usufruto in Portuguese. The heirs may hold only bare ownership, known as nua propriedade — meaning they own the underlying asset, but cannot freely use, occupy or sell the property as full ownership while the usufruct remains active.

This guide explains what usufruct means in Portugal, whether heirs can sell a property with active usufruct, how bare ownership is valued, what taxes may apply in 2026, and what foreign heirs should check before making any decision.

At RE/MAX Cidadela, based in Cascais since 2004, we regularly help heirs and international families deal with inherited-property situations involving usufruct across Cascais, Estoril, Lisbon, Oeiras and Sintra.

Quick summary

• Usufruct, or usufruto, is the legal right to use a property and benefit from it economically, without owning the full property. The usufructuary may usually live in the property or rent it out and keep the rental income.
• Bare ownership, or nua propriedade, is the underlying ownership of the property without the right to use it while the usufruct remains active.
• In Portuguese inheritance situations, it is common for a surviving spouse or parent to hold usufruct while children or other heirs hold bare ownership.
• Heirs who hold bare ownership can generally sell their bare-ownership share, but the buyer does not receive full, unrestricted ownership while the usufruct continues.
• A full-value sale of the property usually requires the usufructuary’s agreement, because the usufruct must be extinguished, waived or transferred as part of the transaction.
• Bare ownership normally sells at a discount compared with full market value, often because the buyer cannot use, occupy or rent out the property until the usufruct ends.
• The value of usufruct and bare ownership is often estimated using age-based fiscal coefficients. Under the Portuguese IMT rules, the percentage deducted from full ownership depends on the usufructuary’s age.
• For IMI purposes, when there is usufruct, the municipal property tax is generally due by the usufructuary, not by the bare owner.
• Since 2026, non-resident buyers must pay special attention to IMT. Certain residential acquisitions by non-residents may be subject to a 7.5% IMT rate unless one of the legal exceptions applies.

Broker tip: Before assuming you can sell “your inherited property”, confirm exactly what you inherited: full ownership, bare ownership, usufruct, or only a share of one of these rights. The land registry certificate, known as the certidão permanente, is the starting point.

What is usufruct in Portugal?

Under Portuguese law, usufruct is the right to temporarily and fully enjoy something that belongs to another person, without changing its form or substance. This definition comes from Article 1439 of the Portuguese Civil Code.

In the case of real estate, this means that one person may have the right to use the property while another person owns the underlying asset.

The person who holds the right to use and benefit from the property is the usufructuary. The person who holds the underlying ownership, but not the current right to use the property, is the bare owner.

In Portuguese, these terms are:

In practical terms, the usufructuary may usually live in the property, rent it out and collect the rental income. The bare owner owns the underlying property, but cannot normally use it, occupy it or rent it out while the usufruct remains active.

That is why usufruct is so important in inherited-property situations. It separates ownership from use.

Legal basis: where usufruct appears in Portuguese law

Usufruct is regulated in the Portuguese Civil Code. Article 1439 defines usufruct as a temporary right to enjoy another person’s thing or right without altering its form or substance. Article 1440 states that usufruct may be created by contract, will, usucapion or legal provision.

The Civil Code also explains how usufruct ends. Article 1476 provides that usufruct may be extinguished by the death of the usufructuary, the end of the agreed term, the reunion of usufruct and ownership in the same person, non-use for 20 years, total loss of the thing, or renunciation.

This matters because usufruct is normally a temporary limitation. It can last many years, especially when it is lifetime usufruct, but it is not normally inherited by the usufructuary’s own heirs. When the usufruct ends, full ownership usually consolidates in the bare owner or bare owners.

How does usufruct usually arise in a Portuguese inheritance?

Usufruct usually appears in inherited-property situations in three main ways.

The first is through a lifetime donation with reserved usufruct. This is very common in Portuguese families. A parent donates a property to the children but reserves usufruct for themselves. The children become bare owners, but the parent continues to live in the property or collect rent from it.

The second is through a will. A person may leave bare ownership to one person and usufruct to another. This can be used, for example, to protect a surviving spouse while preserving the underlying property for children or other heirs.

The third is through family estate planning where property rights were separated years before the heirs became aware of it. Many foreign heirs only discover the usufruct when a lawyer, notary, tax adviser or real estate agent checks the land registry.

This is why the first question is not “Can I sell the property?” The first question is: what exactly do you own?

Usufruct versus bare ownership: what each person can do

The difference between usufruct and bare ownership is not theoretical. It changes control, value, taxation, financing and sale strategy.

Think of the property as having two layers.

One layer is the right to use and enjoy the property. That is usufruct.

The other layer is the underlying ownership. That is bare ownership.

A normal, unrestricted sale is only possible when both layers are transferred together, or when the usufruct is extinguished before completion.

Can heirs sell a property with active usufruct?

Yes, but usually they are not selling full ownership. They are selling bare ownership.

If you inherited bare ownership of a Portuguese property, you may generally be able to sell your bare-ownership interest. However, the buyer acquires the property subject to the existing usufruct. That means the buyer cannot simply move in, rent the property out or force the usufructuary to leave.

The usufruct continues to exist even if the bare ownership changes hands.

This is where many heirs misunderstand the situation. They say, “We inherited the house and want to sell it.” But legally, the more accurate sentence may be: “We inherited bare ownership of a house where someone else still has the right to use it.”

That difference can change the market value dramatically.

In practice, most buyers looking for a normal home do not want bare ownership. They want a property they can use. That is why bare-ownership buyers are often investors, family members or specialist buyers prepared to wait until the usufruct ends.

Does the usufructuary need to agree to the sale?

It depends on what is being sold.

If the bare owner is only selling their own bare-ownership interest, the usufructuary’s agreement may not normally be required for that specific transfer. The usufruct remains attached to the property, and the buyer steps into the position of bare owner.

However, if the goal is to sell the property as a normal, unrestricted home, then the usufructuary’s agreement is usually essential. A buyer who wants full ownership will usually require the usufruct to be extinguished, waived or transferred as part of the transaction.

This often involves negotiation.

The usufructuary may agree to renounce the usufruct in exchange for compensation. The compensation may be a fixed amount, a percentage of the sale price, alternative housing, or another arrangement agreed between the parties.

The most important practical point is timing: this conversation should happen before the property goes to market, not after a buyer has already made an offer.

What if all heirs want a clean full-value sale?

A clean full-value sale is usually possible only if the usufructuary cooperates.

From a market perspective, there are two very different products:

If the usufructuary is elderly, open to moving, or willing to be compensated, the family may be able to structure a full sale. If the usufructuary wants to remain in the property indefinitely, a full sale may not be realistic in the short term.

This is especially important in high-value areas such as Cascais, Estoril, Lisbon and Oeiras. A 20% or 30% difference in sale value can easily represent hundreds of thousands of euros.

How much does usufruct reduce the value of a property?

Usufruct can reduce the market value significantly.

The exact discount depends on the usufructuary’s age, the location, the property type, the expected time until full ownership is obtained, the buyer pool and the level of legal certainty around the documentation.

For fiscal purposes, Portuguese IMT rules use an age-based logic to separate the value of usufruct from the value of bare ownership. Under Article 13 of the CIMT, the value of ownership separated from lifetime usufruct is calculated by deducting a percentage from full ownership according to the age of the person whose life determines the duration of the right. The table ranges from 80% for a person under 20 to 10% for a person aged 85 or more.

A simplified version is:

In simple terms, the younger the usufructuary, the more valuable the usufruct is. The older the usufructuary, the lower the value of the usufruct and the higher the value of the bare ownership.

However, this fiscal table is only a reference point. A real buyer may still apply an additional market discount because bare ownership is illiquid, uncertain and difficult to finance.

Example: inherited property in Cascais with usufruct

Imagine a property in Cascais with a full market value of €600,000.

The surviving parent, aged 78, holds lifetime usufruct. The children inherited bare ownership.

Under the age-based fiscal logic, a usufructuary under 80 corresponds to a 20% deduction from full ownership. In this simplified example:

In theory, the bare ownership could be valued at around €480,000.

In practice, a buyer may still offer less than that. Why? Because the buyer cannot use the property, cannot rent it out, may not obtain normal mortgage finance, and does not know exactly when the usufruct will end.

So the real offer could be below the theoretical bare-ownership value, depending on negotiation and buyer appetite.

This is why heirs should never use only the VPT — the Portuguese tax value — to decide whether an offer is fair. The starting point should be the real market value of the property, followed by a proper analysis of the usufruct, the age of the usufructuary, the location and the realistic buyer pool.

Why VPT is not the same as market value

One of the most common mistakes in inherited-property negotiations is confusing VPT with market value.

VPT stands for Valor Patrimonial Tributário. It is the taxable value used by the Portuguese Tax Authority for certain tax purposes. It is not the same as the price a buyer would pay in the open market.

This matters because the VPT can be much lower than the real market value, especially in premium locations, older properties, renovated homes or areas where demand has risen sharply.

For example, an inherited apartment in central Cascais may have a VPT of €250,000 but a real market value of €500,000 or more. If the heirs calculate the value of bare ownership using the VPT alone, they may underestimate the asset. If they ignore the usufruct entirely, they may overestimate what can realistically be sold today.

The correct approach is usually:

1. Confirm the legal rights registered over the property.
2. Estimate the full open-market value.
3. Apply the usufruct/bare-ownership logic.
4. Adjust for market liquidity, financing limitations and buyer demand.
5. Confirm the tax treatment with a qualified tax adviser.

What taxes apply when heirs sell bare ownership?

Selling bare ownership can trigger tax consequences, just like selling other real estate rights.

Under Portuguese IRS rules, capital gains include gains from the onerous transfer of real rights over immovable property. Bare ownership is a real right, so the sale of bare ownership should be analysed as a taxable event.

The basic logic is usually:

1. Determine what the heir actually inherited: full ownership, bare ownership or another right.
2. Confirm the acquisition value attributed to that right at the date of inheritance or donation.
3. Determine the sale value of the right being sold.
4. Deduct eligible costs, where applicable.
5. Calculate the capital gain according to the taxpayer’s personal tax position.
6. Each heir declares their own share.

The important point is that the acquisition value should reflect the right actually inherited. If the heir inherited bare ownership, the relevant starting point is not necessarily the full value of the property, but the value attributable to the bare ownership at that time.

This is a technical area. Families should confirm the calculation with a Portuguese tax adviser before signing a sale agreement, especially when heirs are non-residents or when the property was inherited many years ago.

Who pays IMI on a property with usufruct?

In most usufruct situations, the annual IMI is due by the usufructuary.

Article 8 of the Portuguese IMI Code states that, in cases of usufruct or surface rights, the tax is due by the usufructuary or the superficiary.

This makes practical sense. The usufructuary is the person who uses or benefits from the property. If the property is rented, the usufructuary normally receives the rental income. If the property is occupied, the usufructuary is the person enjoying the use of the asset.

However, heirs should still check the tax records, because the person shown in the matrix, the land registry and the family’s actual arrangements may not always be aligned.

What about Stamp Duty and IMT?

The tax treatment depends on the type of transaction.

If bare ownership is sold for value, IMT may apply to the buyer. Portuguese IMT rules specifically address the transmission of ownership separated from usufruct and refer to the value of the bare ownership under the special rules of Article 13.

If usufruct is renounced, transferred or extinguished as part of a compensated transaction, the tax treatment should also be reviewed carefully. The CIMT provides specific rules for the constitution, renunciation or separate transfer of usufruct, use or habitation rights.

Stamp Duty may also be relevant depending on the transaction, family relationship and type of transfer.

The practical conclusion is simple: before signing a CPCV or agreeing compensation between heirs and the usufructuary, the family should obtain a tax simulation.

2026 tax note for non-resident buyers

This point is particularly important for an English-language article aimed at foreign heirs and international buyers.

Since 2026, Portuguese IMT rules include a specific provision for certain acquisitions by non-resident buyers. Article 17 of the CIMT states that the rate is always 7.5% for the acquisition of urban residential property by a non-resident buyer, with exceptions where the buyer becomes Portuguese tax resident within the legal period or where the property is used for qualifying residential rental under the conditions set out in the law.

This matters in bare-ownership sales because many potential buyers may be foreign investors, non-residents or international family members. If the buyer is non-resident, the acquisition cost may be materially different from what they expect.

For heirs selling bare ownership, this can affect negotiation. A buyer facing a higher IMT burden may reduce the offer. For buyers, it means the real acquisition budget should be calculated before signing any commitment.

Practical takeaway: if the buyer is non-resident, do not analyse the sale price alone. Analyse the full acquisition cost, including IMT, Stamp Duty, legal fees, registry costs and any special 2026 rules that may apply.

Does a bank finance the purchase of bare ownership?

Usually, this is difficult.

Most banks prefer to finance properties where the borrower receives full ownership and where the bank can secure its mortgage against a usable, marketable asset. Bare ownership is more complicated because the buyer does not have immediate use of the property and the existing usufruct limits practical control.

A bank may be reluctant to lend against an asset that cannot easily be occupied, rented or sold as full ownership if there is a default.

For that reason, buyers of bare ownership are often cash buyers, family members or investors who understand the long-term nature of the transaction.

This financing limitation is one of the reasons bare ownership often sells at a discount.

How does usufruct end?

Usufruct does not normally last forever.

Under the Portuguese Civil Code, usufruct may end through several mechanisms, including death of the usufructuary, expiry of the agreed term, reunion of usufruct and ownership in the same person, non-use for 20 years, total loss of the property, or renunciation.

For heirs, the most common situation is the death of the usufructuary. If the surviving parent held lifetime usufruct, that usufruct normally ends when the parent dies. The children who held bare ownership may then become full owners, according to their respective shares.

However, the land registry should be updated before the property is placed on the market as full ownership.

Practical scenarios for foreign heirs

Foreign heirs often face a mix of legal, emotional and logistical challenges. The property may be in Portugal, the heirs may be in the UK, France, Brazil, Canada or the United States, and the usufructuary may still be living in the property.

Here are the most common scenarios.

The central issue is not only legal. It is strategic. Families need to decide whether they want liquidity now, a full-value sale later, or a negotiated solution with the usufructuary.

Can foreign heirs sell bare ownership without travelling to Portugal?

Often, yes, but the process must be properly organised.

Foreign heirs may be able to appoint a lawyer or trusted representative in Portugal through a power of attorney. Depending on the country where the power of attorney is signed, it may need notarisation, apostille, consular recognition or certified translation.

The exact requirements depend on the country, the document type and the entity that will use the document in Portugal.

For heirs living abroad, the usual steps are:

1. Obtain the land registry certificate.
2. Confirm the tax registration and matrix certificate.
3. Identify all heirs and rights holders.
4. Confirm whether usufruct is active.
5. Check whether the usufructuary is alive, willing to cooperate or already deceased.
6. Obtain a property valuation.
7. Request a tax simulation.
8. Prepare powers of attorney if the heirs will not travel.
9. Decide between selling bare ownership or negotiating a full sale.

The mistake to avoid is trying to market the property before confirming these points. A buyer who later discovers an active usufruct may withdraw, renegotiate or demand a major discount.

Why this matters in Cascais, Lisbon and the Portuguese Riviera

Usufruct exists everywhere in Portugal, but its financial impact is especially significant in high-value markets.

In Cascais, Estoril, Monte Estoril, central Lisbon, Oeiras and other parts of the Portuguese Riviera, the difference between full ownership and bare ownership can be very large.

For a property worth €300,000, a 25% discount means €75,000.

For a property worth €900,000, the same 25% discount means €225,000.

This is why families should not treat usufruct as a small technical detail. It can be the difference between a normal residential sale and a specialist investor transaction.

From a broker’s perspective, the right strategy depends on three questions:

1. Who holds usufruct?
2. What is the full market value of the property?
3. Is the usufructuary willing to cooperate in a full sale?

Only after answering these questions should the family decide whether to sell now, wait, negotiate compensation or seek an investor buyer.

Common mistakes heirs make with usufruct property

The first mistake is assuming that “inheriting a property” always means inheriting full ownership. In many Portuguese families, the heirs inherit bare ownership while a surviving parent retains usufruct.

The second mistake is using the VPT as if it were the market value. VPT may be useful for tax references, but it does not replace a professional market valuation.

The third mistake is listing the property as if it were free of encumbrances. If the property has active usufruct, buyers must know what they are buying.

The fourth mistake is speaking to buyers before speaking to the usufructuary. If the family wants a full sale, the usufructuary’s position must be understood early.

The fifth mistake is ignoring the buyer’s tax burden. In 2026, non-resident buyers may face a different IMT scenario, which can influence the offer.

The sixth mistake is treating the issue as only legal. Usufruct is legal, but it is also emotional, financial and practical. In family situations, especially involving a surviving spouse or elderly parent, a purely technical approach may create conflict.

Frequently Asked Questions

Can foreign heirs sell inherited property with usufruct in Portugal?

Yes, but usually what they can sell is the bare ownership, not full unrestricted ownership. The buyer acquires the property subject to the existing usufruct and normally cannot use, occupy or rent it until the usufruct ends.

Can I sell bare ownership in Portugal without the usufructuary’s consent?

In many cases, the bare owner may sell their own bare-ownership interest without extinguishing the usufruct. However, if the objective is to sell the full property free of usufruct, the usufructuary’s agreement is usually necessary.

Does usufruct end when the usufructuary dies?

Usually, yes. Lifetime usufruct normally ends with the death of the usufructuary. The right is personal and does not normally pass to the usufructuary’s heirs. Full ownership may then consolidate in the bare owner or owners.

How do investors calculate the discount on bare ownership?

Investors usually start with the full market value of the property, then consider the age of the usufructuary, the expected waiting period, financing limitations, legal certainty, property condition and exit strategy. The fiscal age-based table may be a useful reference, but real offers often include an additional liquidity discount.

Is the VPT enough to calculate the value of bare ownership?

No. The VPT is a tax value, not necessarily the market value. A proper calculation should start with the real open-market value of the property, then adjust for the usufruct and the marketability of bare ownership.

Who pays IMI when a property has usufruct?

In general, the usufructuary pays IMI. Portuguese IMI law states that, in cases of usufruct, the tax is due by the usufructuary.

Does the 2026 non-resident IMT rule apply when buying bare ownership?

It may be relevant and should be checked before signing. Since 2026, certain acquisitions of urban residential property by non-resident buyers may be subject to a 7.5% IMT rate unless an exception applies. The final treatment depends on the buyer, the property and the transaction structure.

Can a bank finance the purchase of bare ownership?

It is uncommon. Banks are usually cautious because the buyer does not receive immediate use of the property and the bank’s collateral is limited by the existing usufruct. Many bare-ownership transactions are therefore cash purchases.

What documents show whether a Portuguese property has usufruct?

The most important document is the certidão permanente, or permanent land registry certificate. It should show whether usufruct is registered and who the usufructuary is. The matrix certificate and inheritance documents should also be reviewed.

What should heirs do before selling inherited bare ownership?

They should confirm the registry, identify all owners and usufructuaries, obtain a market valuation, understand the tax implications, check whether the usufructuary is willing to cooperate, and decide whether the best strategy is a bare-ownership sale, a full sale with compensation, or waiting until the usufruct ends.

Final thoughts: know exactly what you inherited before deciding anything

Usufruct is not necessarily a problem. In many Portuguese families, it was created deliberately to protect a parent, spouse or elderly relative. But for heirs, especially foreign heirs, it changes everything.

It changes whether you can use the property.

It changes whether you can sell immediately.

It changes the buyer pool.

It changes the value.

It changes the tax analysis.

And, above all, it changes the strategy.

Before making any decision, confirm your exact legal position. Are you the full owner, the bare owner, the usufructuary, or only one of several heirs? Is the usufruct still active? Is the usufructuary willing to cooperate? Has the land registry been updated? What is the real market value of the property?

At RE/MAX Cidadela, we help heirs and international families navigate inherited-property situations involving usufruct across Cascais, Estoril, Lisbon, Oeiras and Sintra. We can help you review the property documents, understand the practical sale options, estimate the real market value and coordinate the process with legal and tax professionals where needed.

Not sure what you actually inherited?
Before selling, accepting an offer or signing any document, ask RE/MAX Cidadela to review your land registry certificate and help you understand your real options.

Request a Free Review and Valuation for Your Inherited Property in Portugal

Selling an inherited property with usufruct is not just about finding a buyer. Before making a decision, you need to understand the VPT, the land registry, the heirs, the usufructuary’s rights, the property’s real market value and the potential tax exposure.

Contact RE/MAX Cidadela for a free inherited-property review and valuation, and receive a clear sale strategy for Cascais, Lisbon, Oeiras or Sintra.

RE/MAX CIDADELA

Avenida 25 de Abril nº 722, Cascais.

Tel.+351 967604141. E-Mail: ppettermann@remax.pt

⭐️⭐️⭐️⭐️⭐️ 4.6 stars on Google Reviews | 180+ verified client reviews

 Local Specialists in:

• Cascais & Estoril: Residential market, premium properties, and investment opportunities
• Lisbon: Apartments, renovation projects, and historic neighborhoods
• Oeiras & Sintra: Family homes and luxury residential market

----------------------------------

👤About the Author

By Pedro Pettermann
Pedro Pettermann is a Broker at RE/MAX Cidadela in Cascais, with over 20 years of experience in the real estate market across the Cascais coastline, Lisbon, Oeiras, and Sintra. With an MBA from IE Business School, he combines strategic vision with deep local expertise. Recognized as a specialist in the real estate market, mortgage financing, and digital marketing, he helps owners and buyers make confident and profitable decisions.

Pedro Pettermann | LinkedIn

At RE/MAX Cidadela, we have already helped more than 4,800 families successfully sell or buy the home of their dreams