Woman admires Lisbon skyline from Sao Jorge Castle in Alfama. 25 April Bridge, Tagus River and Baixa District on blurred background.Tourism and travel in Portugal.Lisbon Castle is a popular attraction

Financial considerations when moving to Portugal from the UK

If you’ve physically relocated to Portugal from the UK, it’s important to consider the impact this can have on your savings and investments. Here are some financial considerations to keep in mind.

1. Your investment plan probably needs to change

Before you moved to Portugal, your investment plan was tailored to you as a UK resident. It is therefore unlikely to remain suitable for you elsewhere, particularly in Portugal.

Holding on to UK savings and investments while living abroad can result in you:

  • Losing existing tax benefits and missing out on new ones
  • Likely attracting a higher tax bill both in the UK and Portugal
  • Currency mismatches
  • Excluding a large part of the investment market

2. Are you tax resident in Portugal?

If you spend 183 days or more per calendar year in Portugal, or you own a home here that you intend to keep and occupy, you are likely to now be tax resident in Portugal. A change in your tax residency almost always changes how and where your investments are taxed.

Tax regulations in Portugal can differ significantly from those in the UK. Understanding Portugal’s tax system is essential for determining when and how to pay taxes and for future wealth planning as a UK expat in Portugal.

Waving flag of Portugal and UK

3. Can you take advantage of Portugal’s Non-Habitual Residency (NHR) tax regime?

If you are a new tax resident in Portugal, you may be able to apply for the NHR tax programme, which offers a 10-year period of:

  • Reduced tax on almost all foreign income
  • 10% tax rate on foreign pension income
  • 20% flat rate on income from certain professions (as opposed to the standard Portuguese income tax rate of up to 48%)

Every expat’s story is unique and it is therefore essential that you seek tailored advice from a cross-border financial adviser, with expertise in both jurisdictions, to understand your options for diversifying and restructuring your investments and to consider your tax implications (if any).

Sable International has a local presence in Portugal and qualified advisers licensed in multiple jurisdictions (including the EU, UK, US and South Africa).

Email us at [email protected] or give us a call on +44 (0) 20 7759 7519 to find out more about we can help you.

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