As apprehension mounts over the potential tax increases in the British government’s budget on November 26, an increasing number of Scots and Northern English residents are looking to Portugal as an attractive destination for a better quality of life — and a more favourable tax environment.
At a recent party meeting, British Prime Minister Sir Keir Starmer noted that the upcoming Budget “takes place against a difficult economic backdrop,” adding that the government would “make the tough but fair decisions to renew our country and build it for the long term.” Many higher earners and retirees, however, are interpreting those “tough decisions” as a signal of further financial strain to come.
For those seeking stability and value, Portugal continues to stand out. The country’s warm climate, safety, and relatively low cost of living have long made it a top choice for British expatriates.
Now, with the introduction of Portugal’s NHR 2.0 tax regime — replacing the original Non-Habitual Resident (NHR) scheme — the appeal remains strong, particularly for professionals in technology, research and innovation.
Under NHR 2.0, qualifying individuals benefit from:
- A flat 20% income tax rate on eligible employment and professional income.
- Extensive exemptions on most foreign-sourced income, including dividends, interest, rental income and capital gains.
- However, pension income is no longer eligible for these exemptions.
Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, said: “We’re seeing a noticeable rise in enquiries from people across Scotland and the North of England who are worried about the financial direction of the UK.
“Portugal remains one of Europe’s most accessible and welcoming destinations, offering both a high standard of living and genuine financial advantages. The key is to get the right advice early on — and our Moving to Portugal events are designed to make that easy.”
Those interested in exploring relocation, investment or lifestyle options in Portugal can meet experts face-to-face at the next Moving to Portugal Show and Seminars, taking place on Friday, November 21, 2025 in central Edinburgh at the Scotsman Hotel. Doors open to the public at 12 midday.
Leading international tax firm Forvis Mazars, as well as real estate, legal and lifestyle specialists from Portugal, will be available throughout the day to provide guidance and answer questions.
For more information and to register for free entry, visit MTP-Edinburgh.eventbrite.co.uk
