If you are a UK expat living in Portugal, your financial situation involves both UK and Portuguese rules. Your UK pension, investments, tax position and estate planning all need to be considered in the context of both jurisdictions. This guide covers the key questions worth asking — it does not provide personalised tax advice.
Your UK pension
Your UK pension remains yours when you move to Portugal. You can generally leave it where it is — you do not have to transfer it.
Key questions:
- Can I leave my UK pension where it is? Yes, in most cases. See our guide: I Live Abroad – What Happens to My UK Pension?
- How are pension withdrawals taxed in Portugal? This depends on the UK-Portugal double taxation treaty and your Portuguese tax residency status. Portugal may tax pension income. Seek specialist tax advice.
- Should I transfer my UK pension? Not necessarily. Leaving your pension unchanged may be perfectly appropriate. Never transfer on the recommendation of an unregulated adviser.
- Can I keep my SIPP? Yes. Whether you can continue contributing depends on UK relevant earnings.
Source: GOV.UK — Tax on your private pension contributions
Existing UK investments
Your existing UK investments remain yours but their tax treatment changes when you become a Portuguese tax resident.
Key questions:
- Are my ISAs still tax-free in Portugal? ISAs are a UK tax wrapper. Portugal does not recognise the ISA wrapper, so investments within an ISA may be subject to Portuguese tax.
- How are UK dividends taxed in Portugal? UK dividends may be subject to Portuguese income tax. The UK-Portugal double taxation treaty determines which country has taxing rights.
- Should I move my UK investments to Portugal? Not necessarily. Some UK investments may not be available to Portuguese residents. A regulated adviser can help.
Can your existing adviser continue advising you?
Many UK financial advisers are only authorised to advise UK residents. When you move to Portugal, your adviser may no longer have the regulatory permission to provide advice to you.
Key questions:
- Is my UK adviser regulated to advise clients in Portugal? Ask them directly. They may need to be regulated by the CMVM (Comissão do Mercado de Valores Mobiliários) or hold EU passporting rights.
- If not, how do I find an adviser who is regulated in Portugal and understands UK assets? See our guide: How Do I Find the Right Financial Adviser When Living Abroad?
Portuguese residence considerations
When you become a Portuguese tax resident, you are generally taxed on your worldwide income. Portuguese tax residency is based on spending more than 183 days per year in Portugal, or having a habitual residence there.
Key questions:
- Am I a Portuguese tax resident? If you spend more than 183 days in Portugal in a 12-month period, you are likely a Portuguese tax resident.
- What is my UK tax residency status? The UK uses the Statutory Residence Test. The UK-Portugal double taxation treaty tie-breaker rules determine which country has primary taxing rights if you are resident in both.
- What tax regimes might apply to me? Portugal has offered tax regimes for new residents that may provide certain tax advantages for a limited period. The specific rules, eligibility and availability change over time. Always verify the current position with a Portuguese tax adviser before making decisions based on any tax regime.
Source: GOV.UK — Tax if you leave the UK to live abroad
Currency
If you have income or assets in GBP but your living costs are in EUR, currency fluctuations can have a significant impact.
Key questions:
- How do I manage GBP/EUR currency risk? Consider a currency management strategy, including regular transfer arrangements.
- Should I hold investments in GBP or EUR? This depends on your spending needs and long-term plans.
Property
If you own property in the UK and/or Portugal, there are tax considerations in both countries.
Key questions:
- How is my UK property taxed if I live in Portugal? UK property may be subject to UK capital gains tax on sale, and Portugal may also seek to tax the gain. The double taxation treaty determines which country has taxing rights.
- If I buy property in Portugal, what taxes apply? Portuguese property purchase taxes (IMT and stamp duty) and ongoing property taxes (IMI) may apply.
Estate planning
Portugal has its own inheritance and gift tax rules. Stamp duty (Imposto do Selo) may apply to inheritances and gifts.
Key questions:
- Do I need a Portuguese will? A Portuguese will can help ensure your Portuguese assets are distributed according to your wishes.
- How does Portuguese inheritance tax work? Portugal generally applies stamp duty rather than a separate inheritance tax. Close family members may benefit from exemptions. Seek specialist estate planning advice.
- Does my UK will still work in Portugal? A UK will may be recognised in Portugal, but having a Portuguese will for Portuguese assets is generally recommended.
Source: GOV.UK — Inheritance tax and double taxation relief
Returning to the UK
If you return to the UK, your tax position will revert to UK rules.
Key questions:
- What happens to my Portuguese assets if I return to the UK? They remain yours, but their tax treatment will change.
- Do I need to notify anyone when I return? You should notify HMRC and the Portuguese tax authority (Autoridade Tributária) of your change of residence.
Moving elsewhere later
If you move from Portugal to another country, your financial situation will change again.
Key questions:
- Can my adviser continue advising me? Your adviser may need to be regulated in your new country of residence. Ask before you move.
- What happens to my Portuguese tax position? Your Portuguese tax residency will end, but you may have Portuguese assets that continue to have Portuguese tax implications.
Finding an appropriately regulated adviser
To find an adviser who understands both UK and Portuguese rules:
- Check they are regulated in Portugal — by the CMVM or through EU passporting
- Ask about their experience with UK expats in Portugal
- Ask about their knowledge of both UK and Portuguese tax rules
- Check they understand UK pensions and investments
- Verify their regulatory status on the CMVM register
Link Independent is a curated introduction service that helps expats and internationally mobile clients connect with appropriately regulated financial advisers based on their circumstances. Find an adviser or use the Expat Planner to get started.
Finding the right professional
Different circumstances can require different types of professional help:
- Financial adviser — for pensions, investments and financial planning. See our guide: How Can I Check Whether a Financial Adviser Is Regulated?
- Tax professional — for Portuguese tax residency, any applicable tax regime, and UK-Portugal double taxation treaty questions
- Legal professional — for wills, Portuguese estate planning and property legal matters
- Mortgage specialist — for property financing across borders
- FX provider — for GBP/EUR currency transfers and managing exchange rate risk
Understanding the total cost of advice is important before you commit to any arrangement.
Link Independent can help identify appropriate professionals from its network based on your circumstances. Find an adviser or use the Expat Planner to get started.
Summary
- Your UK pension remains yours — you do not have to transfer it
- Your UK investments may be taxed differently in Portugal
- Your existing UK adviser may not be able to continue advising you
- Portuguese tax residency is based on the 183-day rule
- Portugal has offered tax regimes for new residents — always verify current rules
- You need an adviser regulated in Portugal who understands UK assets
- Always seek specialist cross-border tax and financial advice
This guide does not provide personalised tax advice. Always consult a regulated adviser and a qualified tax professional.