According to the Daily Telegraph article by Nicole Blackmore from 7th April 2015 titled ” The ultimate pension freedom – Retire in Portugal and reduce your tax” ,
” If you move to sunny Portugal for example, it could be possible to take your UK pension and pay absolutely 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 crippling tax charges, as such withdrawals are treated and taxed as ordinary income.
It is possible to move to Portugal and pay absolutely no tax whatsoever on your pension, whether you decide to take it as one lump sum or as a regular income.
This is because the United Kingdom has a double tax treaty with Portugal and in 2009, Portugal introduced the nonhabitual residents regime.
This allows new arrivals who become tax resident to take all foreign sources of income such as pensions tax free for the first 10 years.
Jason Porter of Blevins Franks, a company that specialises in financial advice for British expats in Europe, says this is available to anyone who has not been a resident for tax purposes for the previous five years.
To qualify, you need to register as a non-habitual resident with the Portuguese tax authorities, and after 10 years you will be taxed at Portugal’s marginal rates.
Meanwhile the Financial Times article by Merryn Somerset Webb from May 13th 2015 entitled ” A place in the Sun and a Tax Free Pension -Portugal Allows untaxed withdrawals from pensions” goes on to say
“if pension withdrawals are income why shouldn’t one withdraw some or even all of one’s pension while resident somewhere where there is very low or even no tax on pension income? (…) if you are the kind of person whose heart flutters at the idea of making off into the sunset with every penny of your tax efficient savings clutched to your chest, you might want to run the following past your financial adviser.
Ask him what he thinks about you buying a little flat in Portugal and making yourself resident there for a year or two while you clean out your UK pension. Why Portugal? Because it has a double taxation agreement with the UK; if resident in Portugal, you fall only under the Portuguese income tax regime. And because it is running a scheme where foreign pensioners pay no tax on their pension income.”
We strongly suggest anyone wanting to find out more about Portugal’s unique advantages for pensions and taxes should seek professional financial advice but we are more than happy to offer our two cents worth on purchasing and building property in Portugal and moving here permanently – we have over 25 years of experince!
Ennis Property Management …it is our job to bring Peace of Mind to owners of holiday properties in Portugal. We never forget that a property abroad is a massive investment and it is only with professional, on-going care that your investment is protected. We offer all the services you need to be able to rent out your property and all of our staff are legally-employed and fully-insured which is SO important to you
Land and construction prices are at a record low so now is the time to build that home you have always dreamt of. Ennis Project Management staff can make your dream come true and within your budget.
So if you feel we can help or even if you just want a bit of free advice feel free to contact us at admin@ennismanagement.com
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