Portugal attracts Britons amid UK tax changes – Portugal Resident

British families considering a move to Portugal are being encouraged to review their pension, inheritance and succession planning early, as changes to UK inheritance tax rules will affect one of the most important questions in later-life relocation: how family wealth will be passed on. 

From April 6, 2027, most unused pension funds and pension death benefits will be included in the value of a deceased person’s estate for UK inheritance tax purposes. This change is expected to make estate planning more important for many British families, particularly those with significant pension savings and longer-term plans to live overseas. 

Portugal has long attracted British residents because of its climate, lifestyle, safety, healthcare, property options and strong links with the UK. However, for many families, the attraction of Portugal is also now part of a wider financial planning conversation. 

Unlike the UK, Portugal does not have a broad inheritance tax regime. Instead, inheritances may be subject to stamp duty, although spouses, life partners, parents, grandparents, children and grandchildren are exempt. Where no exemption applies, the Portuguese stamp duty rate on inheritance is 10%. 

The Portuguese Chamber of Commerce in the UK says the issue is becoming increasingly relevant for British residents considering retirement, semi-retirement, family relocation or long-term property ownership in Portugal. 

Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, said: “Portugal continues to be one of the most attractive destinations in Europe for British people considering a move abroad. The lifestyle appeal remains very strong, but the conversation is becoming more detailed. Families are no longer only asking us for advice on where to live. They are also asking how a move may affect their pensions, inheritance, tax residence, property ownership and succession planning.

“The recent UK inheritance tax changes do not mean that Portugal should be seen as a simple tax solution. Cross-border estate planning is more complex than that. However, the changes do give British families another reason to review their position properly before making major decisions. 

“Our advice is simple. Plan early, take joined-up advice and understand the difference between spending time in Portugal, buying property in Portugal and becoming properly resident in Portugal.” 

The subject of inheritance tax will be one of the key themes discussed at the forthcoming Moving to Portugal Shows and Seminars in autumn 2026, organised by the Portuguese Chamber of Commerce in the UK. 

The shows give visitors the opportunity to meet specialists in tax, law, financial planning, property, healthcare, pensions, residency and relocation. They are designed for people at every stage of the process, from those beginning to explore Portugal to those already preparing to buy, retire, invest or become resident there.

Upcoming Moving to Portugal Shows & Seminars: 

Dublin
Tuesday, September 22, 2026
Herbert Park Hotel, Ballsbridge, Dublin 4
Register here.

London
Thursday, October 15, 2026
Pestana Chelsea Bridge Hotel & Spa, London SW11
Register here.

Edinburgh
Thursday, November 12, 2026
The Scotsman Hotel, Edinburgh EH1
Register here.