Checked on 7 July 2026. This is orientation, not tax advice; confirm your position with a qualified cross-border adviser.
Is there a new tax treaty between the UK and Portugal?
Yes. A new UK-Portugal Double Taxation Convention was signed on 15 September 2025 and replaces the 1968 treaty. It took effect in Portugal on 1 January 2026 and in the UK from 6 April 2026 for income tax purposes.
Where is my UK pension taxed if I live in Portugal?
Under the new treaty, the UK State Pension and most private and occupational pensions are taxable only in Portugal once you are Portuguese tax resident. The main exception is government-service pensions (for example some civil service, police, armed forces and certain NHS pensions), which generally remain taxable in the UK.
Does Portugal still have a special tax regime for retirees?
No. The old NHR regime closed to new applicants, and its replacement, IFICI, excludes pensions and is aimed at people working in qualifying professions. Foreign pension income for new arrivals is taxed at Portugal’s normal progressive rates. Anyone telling you otherwise is working from pre-2024 information.
What about my UK State Pension increases?
The UK State Pension remains uprated (the triple lock applies) for pensioners living in Portugal, and UK state pensioners can use the S1 form, obtained through NHS Overseas Healthcare Services before leaving, for UK-funded access to the Portuguese public health system.
What should UK movers do differently because of the new treaty?
Three things. First, time your exit-year carefully: the UK side applies from 6 April 2026, so straddling tax years needs attention. Second, tell HMRC properly (form P85 or self-assessment) and register as tax resident in Portugal. Third, if you have government-service pensions, ISAs, or plan to sell a UK property, get cross-border advice before you move, not after. The Move Pack includes a money and tax checkpoint worksheet to organise exactly these questions before you commit.
Sources: GOV.UK tax treaties page (UK-Portugal Convention, in force 29 December 2025); HMRC guidance; checked 7 July 2026.
