Living in Portugal
Your Complete Financial Guide
Essential guidance for UK expats navigating taxes, pensions, and financial planning in Portugal.
At SJB Global, we specialise in helping expats organise their financial lives and navigate the complexities of Portuguese and UK cross-border rules.
Defining a Portuguese Resident
In Portugal, an individual is generally considered a tax resident if they spend more than 183 days in the country, have a permanent home available, or if Portugal is the centre of their personal or economic interests. Employment or professional activity in Portugal can also establish residency, even if less than 183 days are spent in the country. Tax residents are liable for tax on worldwide income and assets, while non-residents are taxed only on Portuguese-source income. Residency status is important for tax obligations, so professional advice is recommended if there’s any uncertainty.
Reporting on Foreign Assets in Portugal
Reporting foreign assets in Portugal requires compliance with the country’s tax laws. Here’s what individuals or entities need to know:
Residency Status
Tax residents in Portugal must report their worldwide income and assets to the Portuguese tax authorities.
Foreign Assets Declaration
Tax Forms
Foreign assets are reported on the Portuguese tax return, Modelo 3, which includes sections specifically for foreign income and assets.
Tax Treaties and Agreements
Portugal has agreements with other countries to prevent double taxation and share information on foreign assets. Residents should understand how these affect their reporting obligations.
Penalties for Non-Compliance
Failure to report foreign assets or income can lead to fines and other penalties from Portuguese tax authorities.
Automatic Exchange of Information (AEoI)
Portugal participates in the Common Reporting Standard (CRS), allowing automatic sharing of financial information with tax authorities in other countries.
Overall, reporting foreign assets in Portugal requires attention to detail, adherence to regulations, and often professional guidance to avoid penalties.
Tax laws and reporting requirements can change, so it’s important to stay informed and ensure ongoing compliance.
Tax Position for Non-Residents in Portugal
For non-residents in Portugal, their tax position is different from that of residents. Here’s an overview of the key aspects of the tax position for non-residents in Portugal:
Portuguese Source Income
Non-residents are generally taxed only on income derived from Portuguese sources, such as employment or rental income from properties in Portugal.
Withholding Tax
Certain types of Portuguese-source income may be subject to withholding tax at the source, depending on the income type and applicable tax treaties.
Flat Tax on Specific Income
Some types of income earned by non-residents, like rental income, may be taxed under fixed rules rather than progressive rates.
Double Taxation Relief
Tax treaties between Portugal and other countries can help prevent double taxation and may provide relief or reduced withholding taxes for non-residents.
Annual Tax Returns
Non-residents may need to file an annual tax return with Portuguese authorities to report income and claim any eligible deductions or credits.
Non-Resident Stamp Duty
Certain property transactions by non-residents, such as acquisitions or sales, may be subject to Portuguese stamp duty.
Capital Gains Tax
Gains from the sale of Portuguese real estate or other assets may be taxed in Portugal, depending on circumstances and applicable exemptions.
Pensions and Annuities
Non-residents receiving pensions or annuities from Portuguese sources may be taxed in Portugal according to the terms of relevant tax treaties.
It’s important for non-residents with income or assets in Portugal to understand their tax obligations and seek professional advice to ensure compliance with Portuguese tax laws and to optimise their tax position within the framework of applicable regulations.
Non-Habitual Resident (NHR) Scheme
The Non-Habitual Resident (NHR) scheme in Portugal was a popular program for expatriates and investors, offering tax advantages on certain income and transactions for a period of time. The scheme officially ended in 2024, with transitional rules allowing some individuals who became tax residents in 2023 or early 2024 to benefit under specific criteria.
The NHR program has been replaced by the Tax Incentive for Scientific Research and Innovation (also called the Incentivised Tax Status Program), which provides tax benefits for individuals in eligible professions who become tax residents in Portugal. Unlike the NHR, pensions are not included in the new program, but qualifying professional income may benefit from favourable tax treatment.
In summary, the NHR offered significant incentives for new Portuguese residents, and the new program continues to provide targeted tax advantages for specific professional categories.
Golden Visa in Portugal
The Golden Visa program allows non-EU/EEA citizens and their families to obtain residency in Portugal through investment. Applicants can invest in real estate, capital transfer, job creation, scientific research, or cultural projects, with real estate being the most common route. Successful applicants and their families receive a temporary residency permit, enabling them to live, work, and study in Portugal, with a pathway to permanent residency and citizenship after several years. Benefits include visa-free travel within the Schengen Area and access to Portugal’s healthcare and education systems, making it an attractive option for investors seeking European opportunities.
Tax Overview in Portugal
Understanding taxation in Portugal is essential for residents, non-residents, and businesses alike. Below is a concise overview of key tax obligations and considerations to help you plan effectively.
Income Tax
Residents are taxed on worldwide income, while non-residents report only Portuguese-source income. Progressive taxation applies, and additional contributions may apply for higher earners. Accurate reporting ensures compliance with Portuguese tax rules.
Inheritance & Stamp Duty
Portugal does not have a specific inheritance tax but imposes stamp duty on inheritances, gifts, and property transactions. Certain transfers between family members may be exempt. Stamp duty also applies to real estate contracts and long-term leases.
Capital Gains Tax
Capital gains tax applies to profits from the sale or transfer of assets such as property, stocks, and other investments. Exemptions may be available for primary residences or reinvestments. Both residents and non-residents must report gains in their annual tax returns.
Corporate Tax
Businesses operating in Portugal are subject to corporate tax, alongside possible local and state surcharges. Understanding corporate tax obligations helps companies plan finances and remain compliant.
VAT
VAT applies to most goods and services in Portugal, with standard and reduced rates depending on the item or service. Awareness of VAT rates and exemptions is key for compliance and avoiding unexpected liabilities.
Social Security
Social security contributions are shared between employees and employers and fund benefits such as pensions, family support, and unemployment insurance. Understanding obligations ensures both compliance and access to benefits.
Tax rules in Portugal can be complex. Consulting a qualified advisor ensures you maximise available benefits, remain compliant, and make informed financial decisions.
UK Pension Planning in Portugal
UK pension holders have several options when living in Portugal, including retaining their current scheme, transferring to a QROPS, or moving to a SIPP.
- Retain Existing Pension – May be suitable for defined benefit or contribution schemes but can limit flexibility.
- Transfer to QROPS – Provides access to pension drawdown, multi-currency options, and inheritance planning but may involve overseas transfer rules.
- Transfer to SIPP – Offers greater investment flexibility, international management, and the ability to take lump sums or income as needed.
Professional advice is crucial to ensure transfers and pension management are tax-efficient and compliant with both UK and Portuguese law.
Taxation on UK Pensions in Portugal
UK pensions are subject to Portuguese taxation but may benefit from double taxation relief. Non-Habitual Residents may have favourable treatment on foreign-sourced pensions.
Understanding how UK pensions are taxed in Portugal helps retirees plan withdrawals, manage liabilities, and optimise retirement income.
An adviser can ensure you take advantage of any available tax treaties and exemptions.
Tax-Efficient Investment Opportunities
The Portuguese Investment Bond offers residents a tax-efficient investment option, providing potential growth, succession planning benefits, and exemptions from certain taxes.
Tax Deferral
Earnings grow without immediate tax liability until withdrawn.
Control of Withdrawals
Policyholders decide when to make withdrawals to optimise tax efficiency
Portability & Security
Bonds can be transferred abroad and provide protection for invested funds.
Succession Planning
Allows nomination of beneficiaries and minimises exposure to stamp duties.
Partnering with a trusted financial advisor can help you make the most of these tax-efficient investment opportunities.
Stay Up to Date on Portuguese Taxes
Navigating Portugal’s tax system can be complex, and legislation changes regularly. Staying informed about residency rules, reporting obligations, and tax rates is essential to remaining compliant and making the most of planning opportunities. Regularly reviewing your financial situation with a professional adviser can help prevent surprises and enable timely, informed decisions.
Key Steps for Expats:
- Confirm Portuguese tax residency status
- Declare foreign assets (including crypto, if applicable)
- Review income, capital gains, and wealth taxes
- Evaluate pension options (UK and local)
- Check double tax treaty implications
- Consider inheritance and estate planning
- Stay compliant with social security contributions
Resources for Expats in Portugal:
- Autoridade Tributária e Aduaneira – official guidance on income, wealth, and VAT obligations.
- UK Government – Living in Portugal – practical guidance for UK nationals on taxes, pensions, and residency.
See What Our Clients Say
Since start of using SJB Global in 2018, I've restructured my pension and savings plans. Professional knowledge, experience and understanding of different available products has enabled me to make... read more
Paul Austin
Thoroughly satisfied in the service, no hesitation in recommending Lewis and the team.
Iain Powell
Very good experience with SJB for pension and tax planning.
Dave Lea
Alex Gover is the best !!! His approach is very professional, helpful and always available. His explanations are very clear and he makes it easier to understand the portfolio. I... read more
Farida SAFSAF
Sound advice and guidance always from SJB Global. This professional outfit have a great perspective of the markets and I feel secure my investments are managed by these guys.
Peter Lacken
great service
John Kay
We moved our financial advisor from UK to Ben Eccles at SJB Global and have been very impressed with the care and attention to detail that he provides. He... read more
Juliette Slater
Outstanding customer service - really happy.
Olaf Ulrich
SJB Global have been my pension provider for a few years now. From switching over which was effortless to the array of products that they have access to is impressive.... read more
Justin Woodmansee
I have corresponded and spoken on the phone with Piers Kemp. His client service skills hit the top marks. He is professional, helpful, kind, polite, and knows what he is... read more
Kristiina St.Croix
Since start of using SJB Global in 2018, I've restructured my pension and savings plans. Professional knowledge, experience and understanding of different available products has enabled me to make... read more
Paul Austin
I have found the support and advise offered by Daniel Lattimer to be very clear, concise and accurate. I can highly recommend him.
Bogdan Bienkowski
Very professional and trustworthy financial consultants. I have had many discussions and dealings with Alex Gover and have found him to be extremely helpful, honest and insightful.
Chris Marsden
We have been extremely impressed with the professionalism and quality of SJB Global. Randal has been our contact throughout the process of setting up our arrangements and he has shown... read more
Martin Kelsey
I feel very well looked after since I transferred my pension to SJB Global. Daniel responds promptly, concisely and clearly to my queries. Additionally SJB offer very competitive management and... read more
Graham Tod
As first time clients of SJB global who have dealt solely with Mr Alex Gover from the moment of our initial approach to SJB and our subsequent investment. The... read more
Roslyn Kelly
Friendly and efficient. Sam was incredibly patient with me and spent a lot of time discussing my savings and pension objectives before making his recommendations.
Sue Kaye
I am hard to catch hold of , a skeptic and slow to make moves. The SJB Global team proved patient, thorough, pressure free and factual and friendly the whole... read more
James Doyle
It’s been a breath of fresh air dealing with Jake from SJB Global. My previous advisor had set up my portfolio badly with annual costs eating heavily into my profits.... read more
Darren Nash
Great experience so far with Ben, always keeps me up to date and informed and also great at explaining things clearly when the information gets a bit technical!
kirk siddall
I received excellent personalised service & advice from Alex. He went above and beyond to listen to my needs and propose a custom investment plans suited to my needs, earning... read more
Karine Pierre-Louis
very professional, friendly. good expertise. able to answer any and all relevant questions. proactive and trustworthy
jeremy hotchkiss
Jake Barber has been a fantastic Financial Advisor for me. When I was moving from the UK to Germany last Summer, I was searching online for a Financial Advisor who... read more
Siddique Khan
Having spent over 24 years of my working life in the UK, I decided to retire back in my home country. But with the issue of having to transfer my... read more
Didier Fernandez
I moved my investment portfolio to SJB Global earlier this year as I was not seeing any growth with my previous investment company. I have to say that from the... read more
Paul Simms
I feel secure with SJB Global. Daniel treats us like family members in the way he deals with us and looks after our savings. He explains things very clearly and... read more
Sharon Tett
A great caring team, nothing is ever too difficult for them to help you work through a problem.
Sue Barley
Worked with Robert Hoey who arranged my Pensions and Investments details in a patient professional manner. Robert has impressed me with his knowledge and understanding of my situation and my... read more
Geoffrey Rea
Whilst early in my journey with SJB I have been very impressed by the knoweldge, perseverance and professionalism I have benefited from as a client of Ben Eccles. Whilst there... read more
John Enoch
I've just completed the transfer of my UK pension to an international setup with SJB Global and Alex Gover as my Advisor. The process was made very clear by Alex... read more
Andrew Taylor
2021 / 2022 have been turbulent years and I went in to the assessment expecting a very painful feedback on my portfolio. I am happy to say Ben Eccles managed... read more
Adam Smith
I feel very well looked after since I transferred my pension to SJB Global. Daniel responds promptly, concisely and clearly to my queries. Additionally SJB offer very competitive management and... read more
Graham Tod
Very professional and trustworthy financial consultants. I have had many discussions and dealings with Alex Gover and have found him to be extremely helpful, honest and insightful.
Chris Marsden
I have corresponded and spoken on the phone with Piers Kemp. His client service skills hit the top marks. He is professional, helpful, kind, polite, and knows what he is... read more
Kristiina St.Croix
I received excellent personalised service & advice from Alex. He went above and beyond to listen to my needs and propose a custom investment plans suited to my needs, earning... read more
Karine Pierre-Louis
Alex Gover is the best !!! His approach is very professional, helpful and always available. His explanations are very clear and he makes it easier to understand the portfolio. I... read more
Farida SAFSAF
I've just completed the transfer of my UK pension to an international setup with SJB Global and Alex Gover as my Advisor. The process was made very clear by Alex... read more
Andrew Taylor
Worked with Robert Hoey who arranged my Pensions and Investments details in a patient professional manner. Robert has impressed me with his knowledge and understanding of my situation and my... read more
Geoffrey Rea
Hi,I would just like to say,SJB Global are a life saver and the person who helped me with my pension needs was Daniel Latimer..At first I was was a little... read more
Adrian Churchill
SJB Global have been my pension provider for a few years now. From switching over which was effortless to the array of products that they have access to is impressive.... read more
Justin Woodmansee
Ready to Get Started?
Navigating taxation, pensions, and investment options in Portugal can be complex. Speak to an expert advisor to ensure your financial planning is compliant, tax-efficient, and aligned with your long-term goals.
What does the obligation free call include?
An initial 15-minute introduction call explaining our services and how we can help.
We go through a fact-finding exercise so we can then provide a full financial planning report including a personalised retirement forecast with future projections and work out how on track you are.
Lastly, we will provide a recommendation on any areas where we feel you could improve.
Who is SJB Global and meet your adviser
Our regulations, Independence and Fees
Our process from start to finish
Area we help with including:
UK Pension Advice
Retirement Planning
Investment Planning
Tax Planning
US Expat Services
International Estate Planning
Note: Minimum managed assets for SJB Global is £100,000 or currency equivalent.
Licensing & Regulations
Nexus Global specialises in providing a regulatory platform and compliance support to international financial advisers and intermediaries to enable them to meet regulatory requirements to provide their clients with a professional service. The financial advisers trading under SJB Global are members of Nexus Global. Nexus Global is a division of Blacktower Financial Management (International) Limited (BFMI). All approved members of Nexus Global are appointed representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission (FSC) and bound by the rules under licence number 3647: http://www.fsc.gi/regulated-entity/blacktower-financial-management-international-limited-3647.