Following Brexit, British nationals visiting Portugal are now subject to the Schengen 90/180-day rule—just like other non-EU citizens. If you’re planning to travel to Portugal, it’s important to understand how this rule works and how to stay compliant.

What Is the 90/180-Day Rule?

The Schengen 90/180-day rule allows you to spend up to 90 days within any 180-day period in the Schengen Area—including Portugal—without needing a visa. These 90 days can be taken in one stretch or split over multiple visits. This applies to holidays, house-hunting trips, or short stays before settling in more permanently.

Why It Matters to British Nationals in Portugal

Portugal remains a top destination for British nationals moving abroad, thanks to its beautiful climate, relaxed pace of life and attractive tax advantages. So if you’re not yet a resident, you’ll need to manage your visits carefully.

Overstaying—even unintentionally—can result in serious consequences, such as:

• Monetary fines

• Deportation

• Temporary bans from the Schengen Zone (up to 3 years)

Example: How the Rule Works in Real Life

Imagine you arrive in Portugal on 1st January. That date begins your personal 180-day period. You’re allowed 90 days within that timeframe—either consecutively or split over a few trips. Once you’ve used up your 90 days, you must leave the Schengen Area and wait until your 180-day window resets before returning.

Need help tracking your days? Use a Schengen calculator (https://www.visa-calculator.com/, https://schengensimple.com/ etc.) or a travel diary app ( Day One , Polarsteps, Travel Diaries or any other)  to stay on top of your timeline.

How to Count Backwards from Your Current Date

A helpful way to calculate how many Schengen days you’ve used is to count backwards 180 days from the date you intend to travel (or are already travelling). Then:

• Add up all the days you’ve spent in the Schengen Area (including Portugal) during that 180-day window.

• If the total is under 90 days, you’re still within the rules.

• If you’re at or close to 90, plan carefully—your next trip may need to wait.

🧮 Example: If you want to enter Portugal on 1 September, look back 180 days (to 5 March) and count every day spent in the Schengen Area during that time. That’s your total.

This rolling calculation ensures that your 90 days don’t need to be consecutive, but they must stay within any given 180-day slice of time.

British Nationals in Portugal: Can You Stay Longer?

Yes, but you’ll need to apply for the correct visa or residence permit depending on your intentions. Common reasons for extended stays or relocation include: retirement, working, family reunification or living off passive income (e.g. pensions or investments) etc.

Most British nationals apply for residency before they move, so forward planning is key.

👉 Interested in long-term solutions? Discover tax-efficient strategies and Portuguese-compliant investment options → here.

Learn more about visas and residency in Portugal for British nationals from the UK government.  

British Nationals in Portugal:

What If You Overstay Due to a Medical Emergency?

Life happens, and sometimes plans change due to health-related reasons. If you’re forced to overstay because of a serious illness or medical emergency:

• Gather evidence: hospital discharge letters, medical certificates, or cancelled flights

• Notify the British Embassy without delay

• Cooperate fully—each case is reviewed on its individual merits

Seeking advice from a relocation expert or legal advisor is also highly recommended.

Entry Rules for UK Citizens

When entering Portugal (or any Schengen country), your UK passport must:

• Be less than 10 years old

• Remain valid for at least 3 months beyond your intended departure date

Make sure your passport is stamped when entering and exiting. If a stamp is missing, be ready to show travel receipts (e.g. boarding passes) and request that border officials manually log your entry or exit.

You May Also Be Asked For:

• Evidence of return or onward travel

• Proof of your accommodation (booking or ownership)

• Financial means (e.g. recent bank statements)

Schengen vs. the EU: What’s the Difference?

Not all EU countries are part of the Schengen Zone, and vice versa. For example:

• Ireland is an EU member, but not in the Schengen Zone

• Switzerland, Norway, Iceland, and Liechtenstein are Schengen members, but not in the EU

Portugal is part of both, making it a strategic and appealing destination for UK citizens.

What’s Coming Next? The EU Entry/Exit System (EES)

The European Union plans to launch the Entry/Exit System (EES) in October 2025. This digital system will automatically record the movements of third-country travellers, including British nationals, into and out of the Schengen Area.

Keep up to date to avoid any surprises at the border.

Final Thoughts: Stay Smart, Stay Within the Rules

If you’re among the many British nationals in Portugal—whether visiting, investing, or preparing for residency—respecting the 90-day rule is absolutely essential. With the right planning, you can enjoy a smooth and stress-free transition.

Moving to Portugal? Let’s Make It Financially Smart

Planning your move to Portugal? Ensure your assets travel just as smoothly as you do. With support from a Chartered Financial Adviser who operates on a lean, transparent fee structure, you can benefit from tailored, cross-border advice that considers both UK and Portuguese systems. From tax optimisation to wealth planning, we help British nationals navigate the financial landscape with confidence and clarity. Get in touch→ here. 

Thinking of retiring to Portugal? It’s a dream for many Britons, but don’t overlook the tax side of things.

If you receive UK pensions, understanding how they’re taxed in Portugal is essential. This guide explains what to expect, how to plan, and where to seek help.

UK Pensions Taxes: What Changes When You Retire to Portugal?

When you become a Portuguese tax resident, your UK pensions may no longer be taxed in the UK (with some exceptions).

Most types of pension income are instead taxed in Portugal. The way this works depends on the kind of pension you have.

1. UK Pensions Taxes: Government Service Pensions

If you worked in the UK civil service or for a local authority, your pension will remain taxable in the UK.

These pensions are exempt from Portuguese tax, even if you’re a resident in Portugal.

Important: NHS pensions do not fall under this category. They are taxed in Portugal like private pensions.

2. UK Pensions Taxes: State Pension

Once you retire to Portugal, your UK State Pension is taxed only in Portugal.

It is taxed at Portuguese income tax rates, which range from 13% to 48% depending on your total income.

If you’re married or in a de facto relationship, you may opt for joint taxation to reduce the rate.

Credit PWC.

3. UK Pensions Taxes: Occupational Pensions

Employer pensions (occupational pensions) are considered regular income in Portugal.

They are taxed at progressive income tax rates, just like employment income.

4. UK Pensions Taxes: Personal Pensions (SIPPs and SSAS)

If your personal pension includes employer contributions, it is taxed as deferred employment income.

If fully funded by personal contributions, treatment may be more favourable:

• Your original contributions may be tax-free.
• Growth or investment income is taxed at 28%.

If it’s not possible to identify the contribution split, tax may follow life insurance rules:

• Years 0–5: 28%
• Years 6–7: 22.4%
• Year 8 onward: 11.2%

5. Pension Lump Sums

In the UK, you can usually take 25% of your pension tax-free.

In Portugal, this does not apply. Pension lump sums are taxed as regular income.

If you’re planning to take a lump sum, consider doing so before becoming a Portuguese tax resident.

6. The NHR Scheme and UK Pensions

Portugal’s Non-Habitual Residence (NHR) scheme offers tax benefits for new residents:

• Registered before 31 March 2020: most foreign pensions may be tax-free.
• Registered after April 2020 (before closure): UK pensions taxed at a flat 10%.

Note: Government pensions are always taxed in the UK, even under NHR.

7. Tax on Investment Income

Other retirement savings and investments may also be taxed:

• Dividends, interest, and capital gains: taxed at 28% flat rate.
• Option to apply progressive income tax rates if more favourable.

Some investment wrappers and life insurance products may reduce your tax exposure under Portuguese law.

Explore more on our page: Portuguese Compliant Investments

Why Reviewing Your Pension Matters

Retirement planning doesn’t end when you move abroad.

Tax laws change. Markets shift. Your goals evolve.

Regular reviews with a qualified financial adviser help keep your plans compliant and tax-efficient.

Final Thoughts

Retiring to Portugal offers sunshine, outdoor living, and a slower pace of life at lower cost.

But your UK pension tax obligations change when you relocate.

Get advice, plan ahead, and stay informed for a secure retirement abroad.

Key Takeaways:

• Government service pensions are taxed in the UK only.
• State and personal pensions are taxed in Portugal.
• NHR may reduce your tax on foreign pensions.
• Lump sums are not tax-free in Portugal.
• Investment income is taxed at 28%, with flexible options.

Speak to a qualified cross-border financial adviser for tailored guidance.

Thinking about investing in Portugal? Join us for an exclusive webinar on March 20th at 17:00 GMT, where our expert panel will guide you through the essential legal, tax, and financial considerations.

https://attendee.gotowebinar.com/register/5315782924267590493?source=INGFWE

Why AML Compliance Matters in Financial Services

In today’s financial services landscape, compliance with Anti-Money Laundering (AML) regulations is critical. The rise in financial crimes and sophisticated money laundering techniques has placed increased pressure on financial institutions to implement strict AML measures.

For prospective clients seeking trustworthy financial advisers in Portugal and the European Union (EU), adherence to AML regulations serves as a key indicator of credibility, security, and reliability.

The Role of AML Regulations in Preventing Financial Crimes

AML regulations are designed to prevent the illegal flow of money through financial systems. Financial institutions, including banks, insurance firms, and investment advisers, must establish and enforce robust AML policies to detect and report suspicious activities.

Failure to comply with AML regulations can lead to:

• Severe financial penalties
• Reputational damage
• Loss of business licenses

A recent example highlights the risks of non-compliance. A well-established wealth management company operating in Europe was fined £294,350 by the Regulator in Gibraltar for failing to adhere to AML obligations. Read the full article here.

Benefits of AML Compliance for Financial Advisers and Clients

Building Trust and Credibility

Clients want assurance that their financial adviser operates with integrity and follows strict AML compliance measures. By demonstrating adherence to AML regulations, advisers establish themselves as trustworthy professionals who prioritize the security of their clients’ assets.

Regulatory Protection

AML compliance helps financial advisers in the EU avoid regulatory fines and penalties. Operating under full EU regulatory licensing ensures legal protection and minimises exposure to financial and reputational risks.

Due Diligence for Prospective Clients

With increased scrutiny in the financial services industry, clients now actively seek out licensed financial advisers who comply with AML regulations. This commitment to regulatory compliance signals ethical practices and a strong dedication to client protection.

Reputation Management and Business Growth

Financial advisers who demonstrate strong AML compliance gain a reputation for professionalism, leading to increased referrals and long-term client relationships. For example, Ingenium Financial has built its business by prioritising compliance and ensuring the highest available client protection at every step.

How to Ensure AML Compliance in Financial Services

To remain fully compliant, financial advisers in the EU should implement the following AML best practices:

Implement Strong Know Your Customer (KYC) Procedures

Verifying client identities is crucial to preventing illicit financial transactions. Comprehensive KYC processes help identify risks early and ensure compliance.

Conduct Ongoing Monitoring

Financial institutions must continuously monitor client transactions for unusual activity and report suspicious behavior promptly.

Provide Regular AML Training for Staff

Ongoing AML training programs help employees stay informed about the latest regulatory updates and identify potential financial crimes. Chartered Advisers must undertake the highest level of adherence and annual examinations.

Maintain Accurate Record-Keeping

Proper documentation ensures that firms can demonstrate AML compliance in the event of regulatory audits or investigations.

Conclusion: AML Compliance as a Key Strategy for Success

For financial advisers in the EU, adhering to AML regulations is more than a legal requirement—it is a fundamental aspect of building trust and ensuring client protection. Prospective clients actively seek advisers who are licensed under MiFID II and comply with EU AML regulations, making compliance a competitive advantage.

While some firms fail to meet compliance standards, highly regulated advisory firms must sometimes request additional background information. Though this may seem intrusive, it ultimately ensures client safety and financial security.

If you’re looking for a licenced, trustworthy financial adviser in the EU, choose Ingenium Financial, a firm that prioritises AML compliance to safeguard your assets and ensure a secure financial future.

IORP Pension: A New Plan for Your UK Pension in Portugal

If you Google the subject of what to do with your pension when moving to Portugal, be warned — you may find a great deal of outdated information. This is because the absolute ‘go-to’ advice previously centred around creating and transferring to a QROPS.

Heck, you might even find some outdated information on this site! – (note to webmaster to check!)

However, since the effective halting of UK pension transfers to other EU countries through the immediate lifting of a previous tax concession applicable to transfers, a different EU pension framework has taken centre stage. This is called an IORP pension and may be highly relevant to those choosing to retire in Portugal.

Understanding IORP Pensions for Your UK Pension in Portugal

In the evolving landscape of pension schemes, the IORP pension (Institution for Occupational Retirement Provision) has gained significant attention—especially for those retiring or working across European borders. These pension schemes provide a structured and secure way to manage retirement income, ensuring both individuals and employers benefit from a transparent and well-regulated framework.

This article explores the key features, advantages, and benefits of IORP pensions, including how they can help avoid the overseas transfer tax—a crucial concern for expatriates and global workers looking to move their UK pension to Portugal.

What is an IORP Pension?

An IORP pension is an occupational pension scheme established by employers for their employees. It is regulated under the IORP II Directive, which was introduced to enhance cross-border pension arrangements within the EU.

This framework sets common standards for pension funds across the EU, ensuring greater security, transparency, and portability of retirement savings.

One important consideration is that a company can have just one employee. Therefore, business owners planning a move to Portugal, establishing such a company as part of their UK pension transfer strategy could be a viable option.

Key Features of IORP Pensions

Cross-Border Flexibility for UK Pension Holders in Portugal

One of the biggest advantages of an IORP pension is its ability to operate across EU borders. Individuals relocating within the EU can often continue contributing to their IORP pension or transfer funds between schemes without additional penalties or taxes.

Employer-Sponsored Retirement Planning

An IORP pension is typically employer-sponsored, ensuring that employees have access to a reliable pension plan. Employer contributions further enhance retirement security, making this scheme an attractive option for UK expatriates in Portugal.

Defined Benefit or Defined Contribution Options

IORP pensions can be structured as either defined benefit (DB) or defined contribution (DC) schemes. DC plans, such as a SIPP, accumulate funds through contributions, while DB plans guarantee a set payout upon retirement.

Strong Regulatory Framework and Transparency

Under the IORP II Directive, pensions are subject to stringent regulatory standards, ensuring proper fund management and asset protection. This provides pension holders with enhanced transparency and peace of mind.

Portability for UK Pensions Moving to Portugal

A major advantage of an IORP pension is its portability across EU borders. Individuals relocating to Portugal can generally transfer their pension rights without losing benefits or being penalised by the overseas transfer tax.

Long-Term Security for UK Pension Holders

An IORP pension offers a structured and secure approach to retirement savings. The framework ensures responsible fund management, reducing risks compared to other investment strategies.

Diversification and Investment Strategy

IORP pensions often diversify investments across multiple asset classes, reducing risk exposure. A qualified and EU licensed financial adviser in Portugal will ensure a strategic portfolio without home bias, leveraging established funds and ETFs.

 EU-Wide Pension Protection

The EU regulatory framework protects IORP pensions across all member states, providing further reassurance for individuals moving their UK pension to Portugal.

Avoiding the Overseas Transfer Tax with an IORP Pension

A significant concern for those transferring a UK pension to Portugal is the overseas transfer tax, which can reduce pension value by 25%.

However, IORP pensions allow tax-efficient transfers within the EU, helping pension holders avoid this tax burden. Because IORP pensions are designed for seamless cross-border transfers, they offer a tax-efficient solution for expatriates moving to Portugal.

More importantly, IORP pensions were not impacted by the October 2024 UK budget, making them an even more attractive option for UK retirees in Portugal.

Learn what European Comission says about IORP here.

Conclusion: Why an IORP Pension Could be the Best Option for UK Expats in Portugal

For individuals looking to optimise their UK pension in Portugal, IORP pensions offer a structured, tax-efficient, and secure retirement solution. Their flexibility, portability, and ability to avoid unnecessary taxes make them an excellent choice for expatriates and global professionals.

If you’re considering moving from the UK to Portugal and looking at options for your private pension, an IORP pension could provide the best combination of security, flexibility, and tax benefits.

Contact Ingenium Financial today for a complimentary consultation on how an IORP pension can work for you.