Portugal has long been one of Europe’s most attractive destinations for international retirees — and for good reason. Beyond its beautiful climate, excellent healthcare system, and relaxed lifestyle, the country offers a range of financial and tax advantages that make it particularly appealing to pensioners from the UK and the US. Understanding how international pensions are treated under Portuguese law can help you maximise your retirement income and avoid unnecessary taxation.

Favourable Tax Treatment for Foreign Pensions
Portugal’s tax regime for foreign residents has undergone several changes in recent years, but it remains one of Europe’s most beneficial for retirees. Under the Non-Habitual Residency (NHR) regime — available to new residents who have not been tax resident in Portugal in the previous five years — most foreign pension income is taxed at a flat rate of 10%, regardless of amount. This is significantly lower than the tax rates applied in many other European countries.

Even outside the NHR scheme, Portugal continues to offer tax-efficient opportunities for structuring retirement income. Depending on the type of pension and the country of origin, some pension income may be exempt from Portuguese tax or benefit from double taxation agreements that prevent being taxed twice.

Pension Options for UK and US Nationals

• UK Expatriates: Many British retirees in Portugal draw income from UK-based pension schemes, such as SIPPs or workplace pensions. Some may also benefit from transferring to a Qualifying Recognised Overseas Pension Scheme (QROPS). A QROPS can offer advantages such as flexible access, currency management in euros, and estate-planning benefits — though suitability depends on individual circumstances.
• US Expatriates: For Americans, retirement planning is more complex due to the US’s worldwide tax system. However, Portugal’s US–Portugal tax treaty helps prevent double taxation, and with the right planning, US expats can structure withdrawals from IRAs or 401(k)s efficiently. Working with an adviser familiar with FATCA and US reporting rules is essential to avoid compliance issues.

Your trusted partner for international pension transfers

At Blacktower FM, we specialize in assisting individuals like you who are considering transferring their UK pensions abroad in countries like Portugal. With our years of experience and in-depth knowledge, we can guide you through the complex processes involved in international pension transfers.

Protect and grow your wealth

Our team of dedicated advisers understands the importance of safeguarding your hard-earned wealth. We work tirelessly to maximize the chances of protecting and growing your pension benefits, ensuring a secure financial future for you and your loved ones.

Defined benefit or defined contribution – we’ve got you covered

Whether you have a defined benefit scheme or a defined contribution scheme, our specialists have extensive experience in handling both types of UK pensions. We tailor our solutions to meet your specific needs, providing personalized advice and strategies to optimize your pension benefits.

Secure Your Retirement with Blacktower FM

Unlock the Power of Defined Benefit Pensions

At Blacktower FM, we understand the importance of a secure and prosperous retirement. That’s why we offer a range of defined benefit pension schemes that provide guaranteed benefits, ensuring you can enjoy your golden years worry-free.

Your Retirement, Our Priority

Our defined benefit pension schemes are often referred to as ‘gold-plated’ due to the unrivaled security they offer. With a promise to pay you an income based on your final salary at retirement, you can rest assured that your financial future is in safe hands.

A Solution for Every Situation

We recognize that employers face challenges in funding these schemes adequately. That’s why we provide tailored solutions to help you navigate through the complexities of international pensions. Whether you choose to transfer your pension into a SIPP or a QROP, our experts will guide you every step of the way.

Peace of Mind, Anywhere in the World

With Blacktower FM, your retirement security knows no boundaries. We specialize in overseas pension transfers, ensuring that no matter where life takes you, your pension remains protected and accessible. Trust us to safeguard your financial future.

Take control of your international pension

Blacktower FM: Your trusted partner for transferring your pension abroad

Secure your financial future

Retiring abroad doesn’t mean compromising on your pension. Blacktower FM offers you two powerful options to transfer your pension and ensure a secure financial future.

SIPP: The ultimate flexibility

With our Self Invested Personal Pension (SIPP), you have complete control over how your pension is invested. Take charge of your retirement by choosing from a wide range of investment options tailored to your needs.

QROPS: Unlock the potential

Our Qualifying Recognised Overseas Pension Scheme (QROPS) allows you to transfer your pension overseas, providing you with greater flexibility and potential tax advantages. Take advantage of international investment opportunities and secure a brighter future for yourself.

Your options, simplified

We understand that navigating the world of international pensions can be complex. That’s why we’re here to guide you every step of the way. Our experienced team will help you understand the pros and cons of each option, ensuring you make an informed decision that aligns with your goals.

With a QROPS (Qualifying Recognised Overseas Pension Scheme), you can break free from the limitations of UK pension regulations and enjoy greater flexibility and benefits.

Seamless international transfers

Transfer your pension to a QROPS effortlessly and experience the freedom of managing your retirement savings in an international pension plan.