Pretorius Wealth

Financial Matters in Portugal

We are well placed to support you if you are thinking of making the move to Portugal. If you are embarking on this life changing move we can support you to understand the financial and tax planning requirements in Portugal taking into account your current investment strategies, pension and estate planning.

We work closely with a number of strategic tax and accounting partners to offer you personalised and strategic financial advice to ensure that your wealth is protected and maximised whilst also ensuring tax compliance in Portugal and UK.

Taxation in Portugal

The taxation system in Portugal is based on a progressive income tax system, with rates ranging from 14.5% to 48% for residents. Non-residents are taxed at a flat rate of 25% on their Portuguese-source income.

The main types of taxes in Portugal are:

Non-Habitual Residency for new residents

The Non-Habitual Resident (NHR) program is a tax incentive program in Portugal that allows individuals who are not tax residents of Portugal for the past five years to benefit from a reduced tax rate of 20% on their Portuguese-source income. The program also offers exemptions on certain types of income, such as pensions and passive income from foreign sources.

Here are some of the benefits of the NHR program:

UK Pensions in Portugal

The taxation of UK pensions in Portugal depends on a number of factors, including your residency status in Portugal and the type of pension you have.

The following are the tax implications for different types of UK pensions in Portugal:

The taxation of the above two pension benefits will also depend on other factors such as whether the pension is deemed a government service pension or a private pension.