Portugal Streamlines Inheritance and Eviction Laws to Boost Housing Supply

Portugal’s government has approved a series of legal changes aimed at accelerating evictions and resolving protracted inheritance disputes, with the goal of increasing the availability of housing and revitalizing underutilized land. The reforms, announced on March 16, 2026, address long-standing issues that have hindered the Portuguese property market and contributed to housing shortages.

Unblocking Undivided Inheritances

A key component of the new legislation focuses on “undivided inheritances,” situations where multiple heirs own a property jointly, often leading to disputes and preventing its sale or development. According to Minister of the Presidency, António Leitão Amaro, the changes will reinforce mechanisms for property division, including the use of succession arbitration outside of the court system [1]. The intention is to allow for the use or sale of a property without a single heir being able to block the process.

The government estimates that 3.4 million rural properties are currently subject to undivided inheritances, representing a third of the national total [1]. Many of these properties are neglected and pose a fire risk.

Streamlining Evictions and a Housing Emergency Fund

The legal reforms similarly aim to expedite eviction proceedings in cases of tenant default. Minister Amaro stated that the government will ensure the “function of solidarity must be performed by the State” through the launch of a housing emergency fund [1]. This fund will provide support to those facing housing insecurity as a result of eviction.

Addressing Empty Homes

Alongside the inheritance and eviction measures, the government is addressing the issue of vacant properties. A recent study by the Institute of Housing and Urban Rehabilitation (IHRU) estimates that there are 250,000 habitable houses currently empty in Portugal, with an additional 130,000 requiring repairs before they can be brought back into use [1]. This represents a potential supply of approximately 550,000 homes.

The government attributes the existence of these empty homes to a lack of incentives for landlords to rent properties and to blockages caused by undivided inheritances [1].

No Tolerance for Non-Compliance

Minister Leitão Amaro emphasized that the new rules will not benefit those who default on rent or delay the division of inheritances. He stated the need for more “houses to live in” and “clean and utilised land,” adding, “We don’t want a country where the land is abandoned, and the forests are burning, nor empty houses falling apart” [1].

Next Steps

The government plans to present the proposed changes to Parliament by the end of March, following a period of consultation with political parties [1]. These measures represent the third package of government initiatives aimed at increasing housing supply in Portugal.