Sign in to join the discussion or ask one of our experts another question.


Information regarding pension drawdown in Portugal?


Jonathan Neal's picture
By Jonathan Neal - Posted on
30 September 2016

Hi We have recently been looking at buying a property in Spain but have been put off slightly by the cost of legal fees etc We have just heard that if we moved to Portugal and became residents I could take my drawdown pension without incurring any tax costs, needless to say this has drawn our attention to Portugal. Can anyone give me any information on this and confirm that it is as good as it seems. Regards Jon

tompitman's picture
Offline
Last seen: 10 hours 58 min ago
Joined: 13/02/2009

Living in:
London

From:
London

Tom's Website
Hi Jon. I'm no expert on this but just found this article which may be of interest. Sounds like there are potential pension benefits of moving to Portugal or Spain. 

Changes to the rules a couple of years ago mean that you may be able take your hard-earned savings with you if you move abroad - and possibly escape some of the taxes that would otherwise apply here in Britain. If you move to Portugal you may be able to take your UK pension and pay no tax on it for the first 10 years. This applies even if you withdraw large sums, a move which in the UK could attract high tax charges, as such withdrawals are treated and taxed as ordinary income. To benefit from these rules, retired people would have to plan the move carefully and make sure they meet strict residence criteria both in Britain and Portugal. And advice from an (honest) professional who has experience with the taxation laws in Portugal is very important. 

Source: 
http://www.telegraph.co.uk/finance/personalfinance/special-reports/11519...

The article was written in 2015, so is a little out of date now. I'm not sure if us leaving the EU will make much difference, but clearly the 10% drop in the pound will make a property in Portugal more expensive. 
Your rating: None
tompitman's picture
Offline
Last seen: 10 hours 58 min ago
Joined: 13/02/2009

Living in:
London

From:
London

Tom's Website
And more here: 

In an effort to attract wealthy foreigners to its shores, Portugal is promising they won't have to pay tax on their non-Portuguese income for a decade.

Source:

http://citywire.co.uk/money/retire-abroad-the-country-offering-tax-free-...
Your rating: None

Post new comment

Please only respond to the original question. If you have a new question, click here
By submitting this form, you accept the Mollom privacy policy.

Comment Note

If you are not logged in, your comment will first be moderated before showing up on the page. Thanks for being patient. Please don't resubmit your comment when you don't see it appear immediately.

If you browser seems to hang when submitting a comment, please click here and reload the main Q and A Forum Page.

Read more posts about Portugal

X
Login with your Facebook account (Recommended)
, after login or registration your account will be connected.