Move from France to Portugal with Financial Confidence
Transition smoothly between two of Europe’s most desirable destinations – with your wealth protected every step of the way.
France and Portugal are two of Europe’s most popular countries for expatriates — each offering an exceptional quality of life, rich culture, and stunning landscapes. But in recent years, many long-term residents of France have begun relocating south, drawn by Portugal’s warmer climate, lower cost of living, and favourable tax regime.
If you’re considering moving from France to Portugal, it’s vital to plan carefully — not just for your relocation logistics, but for your financial, tax, and investment affairs. Both countries have very different fiscal systems, and making the right moves before you relocate can save you significant money and stress.
Here’s how to make the transition confidently, ensuring your wealth remains secure, compliant, and optimised.
1. Why So Many Are Moving from France to Portugal
The shift from France to Portugal has accelerated among retirees and financially independent professionals — and for good reason:
- Lower overall taxation: Portugal’s Non-Habitual Residency (NHR) regime offers favourable tax treatment on pensions and foreign income.
- Lower cost of living: Everyday expenses — from utilities to dining — are often significantly cheaper.
- Excellent climate and lifestyle: Over 300 days of sunshine per year and a relaxed pace of life.
- Favourable residency options: Including the NHR regime and Portugal’s residency permits (such as the D7 and Golden Visa programmes).
- No inheritance or wealth taxes: Unlike France, Portugal does not impose an annual wealth tax or traditional inheritance tax.
For many French tax residents, Portugal represents a financially lighter and lifestyle-rich alternative.
2. Key Financial Considerations Before You Move
Before leaving France, it’s important to review and restructure your finances to avoid unnecessary taxation or complications once you become Portuguese tax resident.
Your pre-move checklist should include:
- Understanding the timing of your tax residency change — when you stop being taxable in France and start being taxable in Portugal.
- Reviewing your French investments and Assurance Vie contracts.
- Planning the transfer of pensions or lump sums in the most tax-efficient manner.
- Assessing your exposure to exit taxes or capital gains taxes before departure.
- Ensuring your banking and currency arrangements are optimised for your new home.
With both France and Portugal being EU member states, the transition is administratively smooth — but financially, expert advice can make a substantial difference.
3. Tax Residency and the Non-Habitual Residency (NHR) Regime
Under Portuguese law, you’re considered tax resident if you spend more than 183 days per year in Portugal or have your main home there.
The Non-Habitual Residency (NHR) regime allows eligible new residents who haven’t lived in Portugal in the previous five years to benefit from:
- A 10% flat tax on most foreign pension income.
- Exemptions or favourable treatment on foreign dividends, interest, and capital gains (depending on treaty conditions).
- A 20% flat tax rate for income earned in Portugal from high-value professions.
In contrast to France’s higher progressive rates and wealth tax (impôt sur la fortune immobilière), the NHR regime often offers dramatically improved net income outcomes, particularly for retirees and investors.
4. Reviewing French Assets and Investments
If you hold French-based assets, such as Assurance Vie policies, real estate, or securities, it’s important to evaluate how these will be treated once you move.
- Assurance Vie: While an excellent tax-efficient tool in France, its advantages may not apply once you are resident in Portugal. Switching to a Portugal-compliant life assurance policy, such as a Private Wealth Portfolio, can preserve the same tax deferral benefits under Portuguese law.
- French real estate: If you retain property in France, it will remain subject to French property taxes and potentially French capital gains tax on sale.
- Bank accounts and savings: Consider maintaining both euro and multi-currency accounts to simplify income management and transfers.
A cross-border financial review helps identify which assets to keep, restructure, or move — ensuring everything remains compliant and efficient after your relocation.
5. Pensions and Retirement Income
For retirees moving from France to Portugal, pensions are often the most significant source of income. Understanding how they’re taxed is crucial.
- French pensions: Typically, French pension income is taxable in Portugal under NHR at a 10% flat rate.
- UK pensions (for dual nationals): May also benefit from the same 10% flat rate, or even partial exemptions depending on your circumstances.
- Private and international pensions: Can often be structured through a QROPS or SIPP for greater flexibility and tax control.
By restructuring before your move, you can ensure your retirement income is stable, efficient, and aligned with Portugal’s favourable tax system.
6. Life Assurance and Investment Solutions
One of the most effective ways to protect and grow your wealth in Portugal is through a Portugal-compliant life assurance policy, such as a Private Wealth Portfolio.
Key advantages include:
- No annual income or capital gains tax on gains while funds remain invested.
- Tax deferral until withdrawals are made.
- Flexibility to access your funds at any time.
- Estate planning benefits, as proceeds are paid directly to beneficiaries outside the will.
- Full legal compliance under Portuguese and EU insurance law.
These products function similarly to Assurance Vie policies in France — offering familiarity and continuity — but are specifically designed for Portuguese tax residents.
7. Estate and Inheritance Planning
France enforces strict forced heirship laws, whereas Portugal’s inheritance system provides more freedom of succession and no inheritance tax between spouses, parents, or children.
However, Stamp Duty (Imposto de Selo) applies at 10% for transfers to non-direct heirs, though this is generally avoidable with careful planning.
Using life assurance policies or structuring assets through compliant investment vehicles allows you to:
- Control how and when beneficiaries receive assets.
- Minimise taxation.
- Protect privacy and confidentiality.
This makes life assurance an excellent estate-planning bridge between the two jurisdictions.
8. Currency and Income Management
While both France and Portugal use the euro, British nationals or dual residents often still hold sterling-based pensions or investments. Currency management remains vital.
- Consider multi-currency investment portfolios to manage exposure.
- Work with FX specialists to optimise pension transfers and income flows.
- Time any lump-sum transfers strategically to benefit from exchange rate trends.
By managing currency risk proactively, you ensure stability and consistency in your income, regardless of market movements.
9. Healthcare and Lifestyle
Both France and Portugal offer excellent healthcare systems, though many expatriates prefer to maintain private medical cover for convenience and English-speaking providers.
Portugal also provides a more relaxed pace of life, a lower cost of living, and a climate that supports year-round outdoor living — factors that combine perfectly with financial peace of mind.
10. How Blacktower Can Help
At Blacktower Financial Management, we’ve supported thousands of expatriates moving between France and Portugal. With local offices in both countries, we provide end-to-end financial guidance, ensuring your assets, pensions, and investments remain compliant, efficient, and aligned with your life goals.
Our cross-border expertise includes:
- Pre- and post-relocation financial planning.
- Pension and retirement income structuring (including QROPS and SIPPs).
- Investment management tailored to your new residency.
- Life assurance and estate planning for peace of mind.
- Ongoing local support and portfolio reviews once you’re settled in Portugal.
We combine decades of experience with a deep understanding of both French and Portuguese financial frameworks — so your move is as rewarding financially as it is personally.
Contact us now for a free confidential consultation
Don’t leave your financial future to chance. Take the first step towards securing your finances by contacting us today for a free confidential consultation. Our team is ready to listen to your needs and provide tailored solutions that will give you peace of mind.