Managing the deceased's finances
A practical guide to handling bank accounts, debts, pensions, taxes and all financial matters after a death in Portugal.
Bank accounts
What happens to bank accounts
Once a bank is notified of a death, the deceased's accounts are frozen. No withdrawals, transfers, or payments can be made until the inheritance process (habilitação de herdeiros) is complete and the bank receives the necessary documentation.
Joint accounts
For joint accounts, the surviving holder may retain access to their share. However, the bank may temporarily restrict the account until it receives the death certificate and clarification of ownership shares.
What to bring to the bank
- • Certified copy of the death certificate
- • Your Cartão de Cidadão
- • Habilitação de herdeiros (when available)
- • Escritura de partilhas (when available)
Finding unknown accounts
To discover all bank accounts held by the deceased, the cabeça de casal can request information from the Banco de Portugal through the Central de Responsabilidades de Crédito and the base de dados de contas bancárias.
Pensions and Social Security benefits
Subsídio por Morte (death subsidy)
A one-time payment of 1,611.39 EUR (3 x IAS of 537.13 EUR). Paid to the spouse, children, or family members who covered funeral expenses. Request within 1 year at Segurança Social.
Pensão de Sobrevivência (survivor pension)
Monthly pension for the surviving spouse (60%), spouse + 1 child (80%), spouse + 2 children (90%), or spouse + 3+ children (100%) of the deceased's pension. Apply at Segurança Social. Use our Pension Calculator.
Debts and obligations
Important: debts and inheritance
In Portugal, when you accept an inheritance, you assume responsibility for the deceased's debts up to the value of the inherited assets. You cannot be forced to pay more than what you inherit. If debts exceed assets, consider renouncing the inheritance.
Mortgage (Crédito Habitação)
Check for credit protection insurance (seguro de vida do crédito habitação). Most mortgages in Portugal require this insurance, which may pay off the remaining mortgage upon death. Contact the bank immediately.
Personal loans and credit cards
Notify each lender. Check for credit protection insurance on each loan. Outstanding balances become part of the estate's debts and will be settled during the inheritance process.
Tax obligations
The heirs must file the deceased's final IRS tax return and settle any outstanding tax debts. Check Portal das Finanças for the deceased's tax situation. IMI (property tax) and IUC (vehicle tax) must also be updated.
Utility bills and contracts
Pay any outstanding utility bills. Cancel or transfer contracts. The estate is responsible for bills incurred up to the date of contract cancellation.
Tax matters
Key tax actions
- • Imposto do Selo: Declare the inheritance to Finanças within 3 months (10% tax, exempt for spouse/children/parents)
- • Final IRS: File the deceased's income tax return for the year of death (April-June of the following year)
- • IMI: Update property tax records after property transfer
- • IUC: Update vehicle tax after vehicle transfer
- • Household status: Update your own agregado familiar at Finanças
The role of the cabeça de casal
The cabeça de casal (head of household of heirs) is responsible for administering the estate until the partition is complete. This is usually the surviving spouse. Their duties include: managing the estate's assets, paying debts and expenses, filing tax declarations, and representing the heirs in administrative matters. This role carries legal responsibilities, so the cabeça de casal should act carefully and transparently.