Inheritances in the Azores with emigrant heirs: how to settle the estate

It is one of the most common situations in Azorean families: a relative dies in São Miguel and some of the heirs live in the United States or Canada. The house stays closed, the land unattended, and the estate division postponed — sometimes for decades. This article explains how it is resolved.

First step: heir qualification

Before any division, you need to determine who the heirs are. This is done through heir qualification, a notarial act declaring who is entitled to the estate. You will need the relevant death, marriage and birth records, and identification of all heirs.

Heirs abroad do not need to travel: they can grant a power of attorney at the Portuguese consulate in their area (or with an apostille) and be represented by a lawyer in every step.

Second step: inventory of the estate

Next comes identifying all estate assets: property (and its registry and tax status), bank accounts, vehicles and debts. In the Azores it is common to find problems at this stage:

• Properties without registration at the Land Registry or still registered in the name of deceased ancestors;
• Area discrepancies between tax records and reality;
• So-called "chãos de melhoras" — buildings on someone else's land, a typical São Miguel arrangement that requires careful legal handling.

These issues do not prevent division, but they must be resolved before or during the process — through adverse possession, notarial justification or registry correction.

Third step: the division

If all heirs agree, the estate is divided by deed or authenticated private document, assigning assets (or the proceeds of their sale) to each party. This is the fastest and most economical route.

Without agreement, the only option is an inventory proceeding, in which assets are valued and divided under judicial or notarial control. It takes longer and costs more — which is why agreement is almost always worth pursuing.

What about taxes?

In Portugal, spouses, descendants and ascendants are exempt from stamp duty on inheritance. Other heirs pay 10% on the value of assets located in Portugal. Heirs resident in the US or Canada should also check local tax obligations — something we coordinate with the client's tax advisers when needed.

Practical advice

The longer you wait, the harder (and more expensive) resolution becomes: heirs who die create new inheritances within the estate, documents are lost, and properties deteriorate. If you have an estate to settle in the Azores, the best time to address it is now.

How we can help

The Luís Resendes law firm handles inheritance and probate across São Miguel, representing resident and emigrant heirs — from qualification to the final deed, including regularisation of older properties. Contact us and tell us what stage your situation is at.