Expat Financial Planning · Portugal
Financial Planning for British Expats in Portugal — D7 Visa, IFICI & Golden Visa
Portugal remains one of Europe's most popular destinations for British expats — EU membership, English widely spoken, a recognised route to citizenship (the residency requirement rose to 10 years for most non-EU nationals from May 2026), and a lower cost of living outside Lisbon and Porto. But the end of the NHR regime in 2023 has fundamentally changed the tax calculation for new arrivals. We help you understand what the numbers actually mean for your pension and income before you make the move.
Critical change for new arrivals
NHR has ended — what this means for British retirees
The old NHR regime (now closed)
- 10-year flat-rate tax regime for new Portuguese residents
- Foreign pension income taxed at 10% in Portugal
- Many investment and employment income categories exempt or taxed at flat 20%
- Attracted thousands of British retirees and remote workers
- Closed to new applicants 31 December 2023
- Existing NHR holders keep status for their full 10-year period
The new IFICI regime (narrow eligibility)
- Replaced NHR from January 2024
- Targeted at tech, research, innovation, and academic professionals
- Requires qualifying employment or self-employment in eligible sectors
- Most retirees, pensioners, and passive income recipients do NOT qualify
- Non-qualifying new arrivals pay standard Portuguese rates: 14.5%–48% progressive
- Correct professional advice is essential before committing to a move
Residency route
The D7 Passive Income Visa — who it is for
Eligibility
Non-EU nationals (including British citizens post-Brexit) with regular passive income of approximately €820/month or more. Eligible income: UK pensions (state and private), dividends, rental income, and other regular passive receipts. Income must be demonstrated with bank statements and supporting documentation.
What you get
2-year initial residence permit, renewable. Permanent residency after 5 years. Portuguese citizenship is available after the qualifying residency period (raised from 5 to 10 years for most non-EU nationals from May 2026). Right to live and work in Portugal. Schengen Area travel. Family members (spouse and dependent children) can be included on the application.
Important caveat
The D7 establishes residency — it does not grant any tax advantage. D7 holders without NHR or IFICI status pay standard Portuguese income tax. For most new British arrivals, this means pension income is taxed at progressive rates up to 48%. A thorough tax modelling exercise before departure is strongly recommended.
Pension planning
UK pensions in Portugal — the tax reality in 2026
Under the UK–Portugal treaty
- Most private UK pension income is taxable in Portugal (state of residence)
- Under old NHR: 10% flat rate applied to foreign pension income
- Without NHR/IFICI: standard Portuguese progressive rates apply (up to 48%)
- Government service pensions (Crown employment) may be taxed only in the UK
- The UK-Portugal DTT prevents double taxation — you should not pay both
Planning considerations
- Model actual Portuguese tax on your specific pension income before departing
- Consider pension drawdown timing — flexibility before becoming Portuguese resident
- Compare Portugal tax cost against Malta, Greece, Cyprus, or UAE as alternatives
- QROPS may be worth reviewing — but requires specialist analysis for your situation
- Obtain UK NT coding carefully — ensure Portuguese liability is accurately assessed
Our services
What we provide for Portugal-based clients
We advise British clients across Portugal — from the Algarve and Silver Coast to Lisbon and the Douro Valley. Our advice integrates UK obligations, Portuguese tax planning, and long-term wealth management in one complete picture.
UK Pension Advice
Pension drawdown, NT coding, and treaty analysis for Portugal residents.
Learn more →Tax Planning
IFICI vs NHR assessment, Portuguese tax modelling, and UK non-residency planning.
Learn more →Estate Planning
Portuguese succession rules, UK IHT planning, and cross-border wills.
Learn more →Property & Golden Visa
Portugal Golden Visa (investment fund route) and property advisory.
Learn more →Protection Insurance
International life assurance, IPMI health cover, and critical illness.
Learn more →International Banking
Multi-currency accounts and specialist expat banking for Portugal residents.
Learn more →Free tools
Tools for Portugal residents
Common questions
Portugal expat financial planning — FAQs
Has Portugal ended the NHR regime?
Yes. Portugal's Non-Habitual Resident (NHR) regime closed to new applicants at the end of December 2023. It has been replaced by the IFICI regime (Incentivo Fiscal à Investigação Científica e Inovação), which is significantly narrower — it applies primarily to qualifying professionals in technology, research, and innovation roles, and to certain academic and scientific positions. The majority of British retirees, pensioners, and passive income recipients moving to Portugal after 2023 will not qualify for IFICI and will therefore be subject to standard Portuguese progressive income tax rates (14.5% to 48%). Existing NHR holders keep their status for the remainder of their 10-year period.
What is the D7 visa?
The D7 Passive Income Visa (also called the Retirement Visa) allows non-EU nationals with sufficient passive income to live in Portugal. The minimum income requirement is approximately €820 per month (plus 50% for a spouse and 30% per dependent child). Eligible income sources include UK pensions, dividends, rental income, and other regular passive income. The D7 grants a 2-year residency permit (renewable). Following the nationality law change in force from May 2026, the residency period required for Portuguese citizenship rose from 5 years to 10 years for most non-EU nationals (7 years for EU and CPLP nationals). Genuine residency — spending significant time in Portugal each year — is required.
Is my UK pension taxed in Portugal now?
This is one of the most important questions for British retirees considering Portugal. Under the UK-Portugal double tax treaty, most UK pension income is taxable in Portugal as the state of residence. Under the old NHR regime, foreign pension income was typically taxed at 10% in Portugal (a 10% NHR rate was introduced in 2020). For new arrivals from 2024 onwards who do not qualify for IFICI, pension income will be subject to Portuguese progressive tax rates of up to 48%. This is a significant change from the NHR era and should be carefully modelled before a move. Government service pensions paid by the UK Crown may retain the right to be taxed only in the UK under treaty provisions.
Is Portugal still good for British expats?
Portugal retains many of its core attractions: EU member state, Schengen Area access, English widely spoken, good climate, lower cost of living outside major cities, a route to citizenship (the residency requirement rose to 10 years for most non-EU nationals from May 2026), and a large established British community. The key change is that the tax advantage for retirees and passive income earners has been significantly reduced since the NHR programme ended. The decision to move to Portugal now requires a more careful analysis of the actual Portuguese tax cost on your specific income and assets, compared with alternatives such as Malta, Greece, or the UAE which offer potentially more favourable regimes.
Can I still get a Portugal Golden Visa?
Yes, but the residential property route was closed in October 2023. Since then, the qualifying investment routes include investment funds (minimum €500,000 in qualifying Portuguese investment funds), job creation (minimum 10 jobs), and capital transfers of €1.5 million or more. The investment fund route is the most commonly used by international investors. The Golden Visa still provides a 5-year renewable residence permit, Schengen travel rights, the right to include family members, and eligibility for permanent residency and citizenship (the citizenship residency requirement rose to 10 years for most non-EU nationals from May 2026).
Thinking of moving to Portugal?
The end of NHR has changed the financial case for Portugal significantly. Before committing, speak to one of our advisers to model the actual tax cost on your pensions and income — and compare Portugal against other European destinations where more favourable regimes remain available.
Speak to a Portugal specialistThe information on this page is for general guidance only and does not constitute personal financial or tax advice. Tax rules, treaty provisions, and visa regulations change — information may become out of date. Always verify current rules and seek qualified professional advice before making any financial decisions. The value of investments can fall as well as rise and you may receive back less than you invest.
Understand the real tax cost of moving to Portugal
With NHR closed to new arrivals, the tax calculation for Portugal has changed significantly. Our advisers can model what you would actually pay on your pension and investment income — and compare it with other European options.