With its warm climate, stunning coastline, and high quality of life, Portugal has become one of Europe’s most attractive destinations for expatriates. Whether you’re drawn by the relaxed pace of life in the Algarve, the culture of Lisbon, or the tranquillity of the Silver Coast, thousands of UK and US nationals have chosen to make Portugal their new home.
However, while the move offers lifestyle rewards, relocating to Portugal also brings financial complexity. Managing wealth across borders — including pensions, investments, and tax planning — requires a clear strategy and professional guidance.
At Blacktower Financial Management, we’ve been helping UK and international clients in Portugal protect, grow, and structure their wealth for nearly 40 years. Our experienced wealth management advisers specialise in supporting UK and US expatriates through every stage of their financial journey.
The Financial Landscape for Expats in Portugal
Portugal offers a favourable environment for expatriates, particularly due to its stable economy, modern banking system, and beneficial tax regimes. However, understanding how your finances fit within the Portuguese system is essential.
Residency and Taxation
If you spend more than 183 days a year in Portugal or have a permanent home there, you are considered a tax resident and subject to taxation on your worldwide income.
The good news is that Portugal has double taxation treaties with both the UK and the US, meaning you won’t be taxed twice on the same income. However, proper planning is still required to ensure your assets and income streams are managed efficiently under both jurisdictions.
1️⃣ The Non-Habitual Residency (NHR) Regime
One of Portugal’s biggest financial attractions is the Non-Habitual Residency (NHR) regime, designed to attract foreign professionals, investors, and retirees.
Under the NHR scheme, qualifying individuals may benefit from:
- A flat 10% tax rate on most foreign pension income.
- Exemptions or reduced tax rates on certain foreign-sourced income, including dividends, royalties, and capital gains.
- No wealth tax and no inheritance tax for direct family members.
While the NHR regime has evolved in recent years, it remains one of Europe’s most appealing tax frameworks for expatriates. Our advisers help clients apply for NHR status and structure their pensions and investments to take full advantage of these benefits.
2️⃣ Pension and Retirement Planning
Managing your pension as an expatriate is one of the most important aspects of long-term financial security.
For UK expatriates:
Our team advises on:
- SIPPs (Self-Invested Personal Pensions): Ideal for maintaining control over your UK pension while living abroad.
- QROPS (Qualifying Recognised Overseas Pension Schemes): Offering flexibility, tax efficiency, and currency control for expats planning permanent residence overseas.
By transferring or restructuring your pension, you can often reduce currency risk, avoid UK inheritance tax, and manage withdrawals efficiently under Portugal’s tax laws.
For US expatriates:
We understand the unique challenges posed by FATCA and IRS reporting requirements. Our advisers work closely with cross-border tax professionals to ensure compliance while optimising your retirement strategy — whether you’re managing 401(k) plans, IRAs, or other US-based retirement assets.
3️⃣ Investment Management
Investing as an expatriate requires balancing global opportunity with local regulation.
Portugal is part of the EU single market, meaning investment products must comply with European financial regulations (MiFID II). Many UK and US expatriates also need to consider currency exposure and tax-efficient investment vehicles suitable for Portuguese residency.
At Blacktower, our wealth management services include:
- Tailored investment portfolios built around your goals and risk tolerance.
- Multi-currency portfolios (EUR, GBP, USD) to reduce foreign exchange risk.
- Tax-efficient investment structures, such as Assurance Vie policies, popular among expatriates in Portugal for their flexible withdrawals and estate planning advantages.
By combining international market access with local insight, we help you grow your wealth securely and strategically.
4️⃣ Estate and Inheritance Planning
Estate planning is a key consideration for expatriates living in Portugal. While the country has no formal inheritance tax, it applies stamp duty (Imposto do Selo) on certain inheritances and gifts — though spouses, children, and parents are exempt.
UK and US expatriates also need to consider how Portuguese succession laws interact with those of their home countries. For example:
- Portugal’s forced heirship rules may dictate how your assets are distributed.
- UK Inheritance Tax (IHT) and US estate tax may still apply to your global estate.
Our advisers help you coordinate your estate planning across jurisdictions, ensuring your assets pass smoothly to your chosen beneficiaries, without unnecessary tax burdens.
5️⃣ Why Choose Blacktower
Since 1986, Blacktower Financial Management has been guiding expatriates toward financial success. With offices in Lisbon, the Algarve, and across Europe, we are one of the most established and respected names in international wealth management.
Our expertise includes:
- Cross-border pension advice (SIPPs, QROPS, and QNUPS).
- Investment management and currency planning.
- Tax-efficient structures under Portuguese law.
- Estate and legacy planning for international families.
Why clients trust us:
- Independent advice: We are not tied to any product provider.
- Local and global reach: Decades of experience in Portugal and across Europe.
- Regulated and transparent: Operating under strict EU and international standards.
- Personalised service: Every client receives one-to-one, ongoing support.
Build Your Financial Future in Portugal
Living in Portugal offers freedom, beauty, and stability — and with the right financial strategy, it can also deliver long-term prosperity.
Whether you’re a UK retiree enjoying life in the Algarve or a US professional relocating to Lisbon, Blacktower Financial Management can help you make the most of your wealth and secure your financial independence.
📞 Book your complimentary consultation today
Speak to one of Blacktower’s expert financial advisers in Portugal to discover how we can help you protect, grow, and manage your wealth across borders.