A key reason to review your wealth management is to confirm it is up to date. Establish how tax and regulatory reforms in Portugal and the UK could affect you, and how to protect yourself from negative changes or take advantage of positive ones. Also consider whether changes in personal circumstances mean you should adjust your arrangements.
However, to ensure everything is suitable for your life in Portugal, for your needs, goals and long-term financial security, your review should go beyond this.
Strategic financial planning lets you see the bigger picture
Many people consider segments of their finances at a time. They may have bought shares in companies they like or invested in funds years ago. They may speak to a tax accountant about Portuguese taxation, then to a lawyer about a Portuguese will. At some point, they look at their pensions to work out how best to access their retirement savings.
For a truly effective review, consider how your tax planning, investments, pensions and estate planning work together.
Residency and taxation
Start by confirming where you are resident for tax purposes, especially if you are new to Portugal or spend time in two countries. Then structure your investments and wealth in the most suitable way to minimise taxation – in Portugal, the UK and wherever you have financial interests – in a way that still meets your tax obligations.
Regardless of how effective your UK tax planning was, you pretty much need to start afresh in Portugal. What was tax efficient there is unlikely to be tax efficient here. Explore compliant opportunities available in Portugal to establish the most effective solutions for your situation and aims, and how much tax you could potentially save.
British expatriates must keep informed of the UK tax reforms, as many have long-reaching implications and impact you here in Portugal. Investigate options to protect yourself and your heirs where necessary.
If you obtained non-habitual residence status before the regime closed to new applicants, keep an eye on how many years you have left of your 10-year term. Once your status ends, your worldwide income and gains become liable to Portuguese taxation at the full rates. Allow time to ensure you have made the most of the benefits and to restructure your assets for a tax-efficient transfer out of NHR.
Estate planning
It is vital to review your estate planning when living in Portugal. Although the local inheritance tax (‘stamp duty’) is very limited, Portugal’s ‘forced heirship’ rules restrict who you can leave your assets to. This can have unwelcome consequences for certain families unless you plan ahead.
The UK’s domicile-based system for inheritance tax ended in 2025 and the replacement long-term residence approach is more beneficial for British expatriates. It presents an opportunity to remove your assets from the UK inheritance tax (IHT) net if you live abroad long-term. Note, though, that UK pension funds become subject to IHT from April 2027. Start exploring your options now.
Financial structuring for life in Portugal
Your financial planning must be specifically structured around your personal circumstances – your lifestyle today and future plans, family situation, income requirements, objectives, time horizon and risk tolerance.
If you don’t have a current financial plan in place for Portugal, confirm if your savings and investments are suitable for you today. Do they have the right balance of risk and return? Do you have adequate diversification? Can they provide income without risking the capital? Could you consolidate shares and funds so they are easier to manage?
Also consider your tax liabilities on investment income and gains, and whether you could take advantage of tax-efficient arrangements as a resident of Portugal. And how will these savings be passed to your heirs? What inheritance taxes will they pay? Can the funds be passed on directly or after a lengthy probate process?
When deciding what to do with your pensions, explore all your options to establish the most suitable approach for you.
Pulling everything together
Your strategic financial planning must be carefully designed for you. All the various aspects should work cohesively together to create an overall wealth management plan that provides long-term financial security for yourself and achieves your wishes for your heirs.
For peace of mind that you have covered everything, and that making one financial decision will not have unexpected consequences on another, take specialist, cross-border advice. Ultimately, spending time on a financial health-check now can help ensure you and your family are in the best financial position for 2026 and long into the future.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual should take personalised advice.
Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com.
Read Adrian Hook’s last month’s article: Crossing EU borders: the Exit/Entry System (EES) and British expatriates
