Expat Tax Planning in Portugal

Tax advice for expats in Portugal

The international tax service at Forth Capital provides high quality cross-border and Portuguese tax advice for individuals moving to Portugal, already living in Portugal or purchasing property in Portugal.

Our tax advisers are qualified Chartered Tax Advisers and members of the Chartered Institute of Taxation, who have specific expertise in Portuguese taxation, with over 15 years of experience advising expatriates.

With our specialist knowledge of both the UK and Portuguese tax systems, and how they interact, we can highlight opportunities to reduce your taxes whilst also ensuring you avoid the pitfalls.

Our Areas of Expertise

Residence Planning – for individuals moving to Portugal who have not been resident there at any point in the previous 5 years, there is a particularly favourable tax regime referred to as the ‘Non-Habitual Residents Regime’.  Under this regime, many sources of overseas income and gains can be tax free in Portugal for a period of up to 10 years.  We can advise on whether you will qualify for this regime and the benefits in your particular circumstances.  We will also advise on the optimum time to leave or return to the UK, and your tax filing obligations in the UK and Portugal.

UK Residence – the UK’s residence rules are particularly complicated and without due consideration of these rules you may inadvertently find that you are treated as UK resident, particularly if you visit the UK frequently and you retain connections with the UK.  We will guide you through the UK residency rules and ensure you know exactly how much time you can spend in the UK without triggering UK residency.

Capital Gains Tax Planning – we will assess your capital gains tax liabilities and consider the optimum time to sell assets to mitigate your tax liabilities in both the UK and Portugal.  The capital gains tax regime in Portugal depends on the type of asset being sold and where it is located.  We can advise you on your liabilities in Portugal and any reliefs and deductions available.

Income Tax Planning – we can advise on tax planning for all forms of income, including rental income, salary v dividends, investment income, share options and more.

Succession Tax in Portugal – Portugal’s inheritance tax is referred to as Stamp Duty, and is payable by the beneficiary at a flat rate of 10% on chargeable assets.  There are substantial exempts and reliefs, particularly for close family and assets situated outside Portugal.

UK Inheritance Tax – even if you become resident in Portugal and live there for many years, you may still be liable to UK inheritance tax which is based on your domicile status not your residence status.  It can be difficult for an individual with a UK domicile to change their domicile.  Where this is likely to be possible, we can advise on the steps you would need to take, and the benefits of acquiring a non-UK domicile.

Pension Planning – the UK’s pension rules have been evolving rapidly over the past few years.  With the correct planning, it may be possible to avoid tax altogether on your UK pensions if you become resident in Portugal.

Tax Efficient Investments – investments that are tax efficient in the UK may not be tax efficient in Portugal.  We can advise you on the options available as a resident of Portugal and how restructuring can help to reduce both UK and Portuguese taxes.

What happens next?

Click here or on the green speech bubble icon to the right of the screen and fill in the online form, a member of our team will then contact you to discuss your situation.