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We provide a comprehensive wealth management and tax planning service to Expats living in Portugal, those considering moving to Portugal and Expatriates who are returning from Portugal to their home country.

There are some very significant differences between the tax regime in Portugal and the way your tax is levied in the UK and other countries and without professional help in understanding the differences there could be a serious negative effect on your wealth. There are even taxes in Portugal that Expats will not have encountered before such as Wealth Tax and Solidarity Tax.

Portugal Tax

As a resident of Portugal you could be liable for Portugal tax as follows:

  • Income tax of up to 48%
  • A ‘solidarity tax’ of 2.5% or 5% for higher incomes
  • 28% on interest income
  • Tax on capital gains when selling property and investments
  • Annual wealth tax of up to 1% on property interests worth over €600,000
  • Non-residents could be liable for Portuguese taxes, for example, if you own, or sell property in Portugal.

Tax Planning Advice is Essential For Expats Looking To Retire in Portugal

Without proper tax planning you could end up paying considerably more tax than necessary. The rules are complicated and with the introduction of Common Reporting Standards the Portuguese authorities will automatically receive information about your income and asset holdings elsewhere so it is important to ensure that your tax declarations are correct.

Although the regime sounds onerous with our help you should be able to enjoy favourable tax treatment.

Establishing Residency in Portugal Under The Non-Habitual Residency Regime

If you are a newcomer to Portugal the ‘Non-Habitual Residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive foreign income – for example investment income pensions and dividends tax-free.

Investments & Pensions

Our advisers are here to help you structure your investments and pensions to ensure that you benefit from the tax efficient schemes available to Expats living in Portugal or planning on moving to Portugal. It is really important that you recognize that tax efficiency means aligning your assets with your residential status. Holding onto UK investments after acquiring residency in Portugal can be detrimental to your wealth and it is equally important to review your pension arrangements before moving to Portugal if you intend to retire there.

Estate planning and Inheritance Tax

Inheritance tax in Portugal is referred to as stamp duty. The tax rates are considerably more attractive than the UK equivalent and can even be 0% for direct family and spouses. What Expats need to remember is that living in Portugal does not necessarily remove your liability for UK Inheritance. UK domicile rules mean that your worldwide assets can still be subject to IHT.

With careful planning our Expat experts will guide you through this complex area of planning to help minimise your liabilities.

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Frequently Asked Questions about Financial Planning Advice For British Expats In Portugal

Welcome to our FAQ for British Expats in Portugal seeking financial planning advice! If you're a British expat living in Portugal or considering a move to this beautiful country, this guide is here to provide you with valuable insights and answers to common questions regarding your financial planning needs.

Living abroad as an expat comes with unique financial considerations, and as a British expat in Portugal, you may have questions about various aspects of managing your finances, including tax planning, investment strategies, pension transfers, and estate planning. Navigating these areas can be complex, which is why we've compiled this FAQ to address the most common queries and provide guidance tailored to your specific circumstances.

While we strive to provide accurate and up-to-date information, it's important to note that financial regulations and tax laws can change over time. Therefore, we highly recommend consulting with a qualified financial advisor or tax specialist who is experienced in working with British expats in Portugal. They can provide personalized advice based on your unique situation and help you make informed decisions to secure your financial future.

Let's dive into our FAQ and empower you with the knowledge and resources you need to navigate the financial landscape as a British expat in Portugal.

What are the tax implications of moving to Portugal?

The tax implications of moving to Portugal can vary depending on your individual circumstances and the types of income you receive. Here are some key points to consider:

Personal Income Tax: As a resident of Portugal, you are generally subject to personal income tax on your worldwide income. The tax rates range from 14.5% to 48% depending on your income level. However, Portugal offers several tax incentives and exemptions, such as the Non-Habitual Resident (NHR) regime, which may provide certain tax advantages for eligible individuals.

Non-Habitual Resident (NHR) Regime: The NHR regime is a special tax regime available to new residents in Portugal. It offers attractive tax benefits, including a flat rate of 20% for certain types of income, such as employment income sourced from foreign countries, and some self-employment income whilst pension income is taxed at 10% or possibly lower if structured as an annuity. The NHR regime is available for a period of 10 years and requires meeting specific eligibility criteria.

Wealth Tax: Portugal does not currently impose a wealth tax on individuals save for property.

Capital Gains Tax: Capital gains derived from the sale of assets, such as property or investments, are generally subject to capital gains tax in Portugal. The tax rates vary depending on the type of asset and the holding period. Certain exemptions or deductions may apply based on specific circumstances or applicable tax treaties.

Inheritance and Gift Tax: Portugal has inheritance and gift tax regulations. The tax rates and exemptions depend on the relationship between the donor/inheritance provider and the recipient, as well as the value of the assets transferred. There might be stamp duty on gifts and inheritances.

It's important to note that tax laws can change over time, and individual circumstances may differ. It is highly recommended to consult with a qualified tax advisor or specialist who can provide personalized tax planning advice based on your specific situation and help you navigate the Portuguese tax system effectively.

Can I live in Portugal but pay taxes in the UK?

The tax implications for individuals living in Portugal but paying taxes in the UK can be complex and depend on several factors. Generally, tax residency is determined by the number of days spent in each country and other criteria defined by tax laws. If you are considered a tax resident in Portugal, you are generally required to pay taxes in Portugal on your worldwide income. However, tax treaties between countries, such as the one between the UK and Portugal, may provide provisions to avoid double taxation and determine which country has the primary taxing rights. These treaties often consider factors such as permanent home, centre of vital interests, and habitual abode to determine residency for tax purposes.

It is essential to seek professional advice from a tax expert who is knowledgeable about both UK and Portuguese tax regulations. They can assess your specific circumstances and guide you on the applicable tax rules, residency status, and any available provisions for avoiding double taxation. Compliance with the tax laws of both countries is crucial to ensure that you fulfil your tax obligations accurately and make use of any applicable reliefs or exemptions.

What are the tax residency rules and how do they impact my tax obligations in Portugal?

Tax residency rules determine the criteria by which an individual is considered a tax resident of a particular country, in this case, Portugal. Being a tax resident in Portugal means you are subject to Portuguese tax laws and regulations on your worldwide income. Here are some key points regarding tax residency rules in Portugal:

Residency Criteria: In Portugal, tax residency is primarily determined based on the number of days you spend in the country within a given tax year. The general rule is that if you spend 183 days or more in Portugal during a tax year (or have a home in Portugal on December 31st with the intention to hold it as your habitual residence), you are considered a tax resident.

Automatic Residency: If you spend 183 days or more in Portugal during a tax year, you are automatically deemed a tax resident, regardless of any other circumstances. This triggers the obligation to report and pay taxes on your worldwide income.

Residency Based on Other Factors: Even if you do not meet the 183-day threshold, you may still be considered a tax resident if you have your "centre of vital interests" in Portugal. This includes factors such as permanent home, family ties, economic activity, and social ties. If the majority of your personal and professional connections are in Portugal, you may be deemed a tax resident.

Double Taxation Treaties: If you are a tax resident in more than one country, you may be eligible to benefit from double taxation treaties. These treaties aim to prevent double taxation and determine which country has the primary taxing rights. They often provide mechanisms for tax relief, such as tax credits or exemptions, to avoid or mitigate double taxation.

Understanding the tax residency rules is crucial for determining your tax obligations in Portugal. It's advisable to consult with a qualified tax advisor or specialist who can assess your specific situation, guide you on the applicable rules, and help ensure compliance with Portuguese tax regulations.

Can I get a mortgage in Portugal?

Yes, it is possible for expats to obtain a mortgage in Portugal. Many Portuguese banks and financial institutions offer mortgage products specifically designed for non-Portuguese residents. The requirements and conditions for obtaining a mortgage may vary between lenders, but typically you will need to provide proof of income, employment status, and financial stability. Additionally, it's common for lenders to require a deposit of around 20-30% of the property's value. It's advisable to consult with several banks or mortgage brokers to compare offers, interest rates, and terms to find the best mortgage option that suits your specific circumstances. Working with a local lawyer or financial advisor who is familiar with the Portuguese mortgage process can also be helpful in navigating the application process and understanding all legal aspects.

What is the best way to manage my pension and retirement planning as a British expat in Portugal?

Managing your pension and retirement planning as a British expat in Portugal requires careful consideration and strategic decision-making. Here are some steps you can take:

Understand your UK Pension Options: Assess the different types of UK pensions you may have, such as workplace pensions, personal pensions, or self-invested personal pensions (SIPPs). Familiarize yourself with the rules, benefits, and any potential tax implications associated with each pension scheme.

Seek Professional Advice: Consult with a qualified financial advisor who specializes in international pensions and retirement planning for British expats. They can provide personalized guidance based on your specific circumstances, taking into account both UK and Portuguese tax regulations.

Explore Pension Transfer Options: Depending on your situation, you may consider transferring your UK pension to a Qualifying Recognized Overseas Pension Scheme (QROPS) or an International Self-Invested Personal Pension (I-SIPP) that is compatible with Portuguese regulations. Transferring your pension to a QROPS or I-SIPP can offer greater flexibility and potential tax advantages, but it's crucial to evaluate the associated costs, fees, and benefits before making a decision.

Review Tax Implications: Understand the tax implications of your pension in both the UK and Portugal. Consider the potential tax consequences of pension withdrawals, income, and any inheritance tax implications. Seek advice to optimize your tax position in Portugal and ensure compliance with relevant regulations.

Diversify Your Retirement Savings: Explore other retirement savings options to complement your pension, such as QNUPS and Portuguese Compliant Investment Bond or other investment vehicles. Diversifying your retirement savings can provide a more robust financial plan for your future.

Regularly Review and Adjust: Keep your retirement plan under regular review, considering changes in your personal circumstances, investment performance, and relevant tax laws. Periodically reassess your goals and adjust your retirement strategy accordingly.

Remember that retirement planning is highly individual, and what works best for one person may not suit another. Seeking professional advice tailored to your specific needs and objectives is crucial to make informed decisions and ensure a secure retirement in Portugal.

How can I ensure my wealth is protected and efficiently managed in Portugal?

To ensure your wealth is protected and efficiently managed in Portugal, consider the following strategies:

Seek Professional Financial Advice: Engage the services of a qualified financial advisor or wealth manager who specializes in working with expatriates in Portugal. They can provide personalized guidance based on your financial goals, risk tolerance, and tax considerations. A professional can help you develop a comprehensive wealth management plan tailored to your needs.

Diversify Your Investments: Spread your investments across different asset classes, such as stocks, bonds, real estate, and alternative investments, to reduce risk and maximize potential returns. Diversification can help protect your wealth from market volatility and economic uncertainties.

Regularly Review and Adjust Your Portfolio: Monitor your investment portfolio regularly and make adjustments as needed. Stay informed about market trends, economic developments, and changes in regulations that may impact your investments. Periodically review your investment strategy and ensure it aligns with your long-term financial goals.

Consider Tax-Efficient Structures: Work with tax specialists or advisors to optimize your tax position and take advantage of any available tax-efficient investment structures in Portugal. This may include utilizing tax planning strategies to minimize your tax liabilities.

Estate Planning: Develop a comprehensive estate plan that aligns with Portuguese regulations. This may include creating wills, trusts, or other legal structures to ensure your assets are distributed according to your wishes. Consider consulting with financial professionals who specialize in estate planning to help protect and efficiently transfer your wealth.

Stay Informed and Engaged: Stay updated on the latest financial and economic developments in Portugal. Attend seminars, workshops, or webinars related to personal finance and wealth management. Educate yourself about investment strategies, risk management, and wealth preservation techniques to make informed decisions.

Regularly Review Insurance Coverage: Evaluate your insurance coverage, including life insurance, health insurance, property insurance, and liability insurance. Ensure that your coverage adequately protects your wealth and financial well-being.

Remember, individual financial circumstances vary, and it's important to work with professionals who can provide personalized advice based on your specific situation. A comprehensive wealth management strategy considers your financial goals, risk tolerance, tax considerations, and legal requirements to ensure your wealth is protected and efficiently managed in Portugal.

What are the inheritance tax implications for British expats in Portugal?

Inheritance tax implications for British expats in Portugal can vary depending on the specific circumstances, such as residency status, the nature of the assets, and the relationship between the parties involved. Here are some key points to consider:

Portuguese Inheritance Tax: Portugal has its own inheritance tax system, known as Imposto sobre as Sucessões e Doações (ISD). The tax rates and exemptions depend on the value of the assets being inherited and the relationship between the donor/inheritance provider and the recipient. Spouses and direct descendants (children and grandchildren) generally benefit from more favourable tax rates and higher exemptions compared to other relatives or non-related individuals.

Double Taxation Treaties: If you are a British expat inheriting assets in Portugal, it's important to consider the double taxation treaty between the UK and Portugal. These treaties aim to avoid double taxation on inheritance by determining which country has the primary taxing rights. They often provide mechanisms for tax relief, such as tax credits or exemptions, to avoid or mitigate double taxation.

UK Inheritance Tax: As a British expat, you may still have potential UK inheritance tax obligations on your worldwide assets. The UK has its own inheritance tax rules, which may apply based on the value of the assets and your domicile status. It's crucial to understand the interaction between Portuguese and UK inheritance tax laws and seek professional advice to assess your potential tax liabilities in both countries.

Estate Planning and Tax Optimization: Proper estate planning can help minimize inheritance tax liabilities. This may involve utilizing exemptions and reliefs available under Portuguese law, considering lifetime gifts, establishing trusts, or structuring assets in a tax-efficient manner. Seeking advice from a qualified tax advisor or estate planning specialist is recommended to ensure your estate is structured optimally.

It's important to note that tax laws can change over time, and individual circumstances may differ. Therefore, it is highly recommended to consult with a qualified tax advisor or specialist who can provide personalized advice based on your specific situation, help you understand the inheritance tax implications, and assist you in navigating the complexities of inheritance tax as a British expat in Portugal.

Can I continue to use my UK-based financial adviser?

In most cases it is not possible to continue using your UK-based financial adviser while living in Portugal. However, there are a few factors to consider. Firstly, verify if your financial adviser is authorized to provide financial services to clients residing outside of the UK. Some advisers may have the necessary qualifications or licenses to offer international services. Secondly, be aware that your UK-based financial adviser may have limited knowledge of Portuguese tax laws and regulations. It's advisable to work with a financial adviser who has expertise in both UK and Portuguese financial matters or consider seeking the assistance of a financial adviser who can provide guidance specific to your situation in Portugal. This will ensure that you receive comprehensive advice and take into account any applicable tax implications or other factors relevant to your expatriate status. Ultimately, consulting with a qualified financial professional is recommended to make informed decisions based on your individual circumstances.

Is your service restricted to British nationals?

No, our services are not restricted to British nationals. We provide assistance and support to expats from various countries, including but not limited to British nationals, who are living in Portugal or planning to relocate there. Our services are designed to cater to the needs of a diverse range of expatriates, irrespective of their nationality. Whether you require guidance on legal matters, tax advice, or general information about living in Portugal as an expat, our team is here to help you navigate the complexities and provide valuable assistance regardless of your nationality.


In conclusion, financial planning is crucial for British expats in Portugal to ensure a secure and prosperous future. Whether you are concerned about tax planning, retirement savings, wealth management, or other financial aspects, seeking professional advice is key. By working with knowledgeable advisors who understand the intricacies of the Portuguese financial landscape, you can make informed decisions and optimize your financial situation. Remember to consider factors such as residency requirements, tax implications, investment opportunities, and healthcare provisions. With the right financial planning advice, you can navigate the Portuguese financial system confidently and take steps towards achieving your financial goals as a British expat in Portugal.

Talk To Us

If you are looking to retire in Portugal or have already established residency in Portugal you should speak directly to a locally based, professionally qualified, personal financial advisor, specialising in Expats in Portugal, about your personal financial planning needs.

Please contact us on Tel: +44 207 998 0570 or email connect@fwm.gi