Here we examine some key issues around Financial Planning in Portugal that we help our clients with.

Three Key Areas You Should Consider in Your Financial Planning

#1. Portuguese Residency and Taxation

Residency rules in Portugal and other countries like the United Kingdom are significantly different and are deliberately complicated. The fact that you live in Portugal rather than, for example, the United Kingdom can have a major impact on your financial and tax planning. As a result, if you spend time in more than one country, understanding the residency rules is important.

Should you become resident in Portugal, it is important to re-visit and potentially re-structure your assets to consider the local tax rules in your new country of residence.

It is also important to re-visit Estate Planning and potentially alter existing wills.

Tax-efficient accounts and assets are usually subject to heavy taxation in Portugal. You should investigate the tax-compliant arrangements available in Portugal that will allow you to reduce taxation on your investments, pensions and savings.

#2. Estate Planning

Portuguese taxation rules on death differ significantly from the UK inheritance tax rules, and it is important to understand the relevant rules and prepare appropriately.

Portugal is notorious for “forced heirship” laws. These generally impose strict criteria on who can inherit assets and in what proportion. For some families, this can have unfavorable and unintended consequences.

With careful planning it is possible to use European Succession Laws to draft an appropriate will and Estate Plan that allows you to ensure that your assets are distributed in line with your wishes.

#3. General Lifestyle

Perhaps the most important aspect of financial planning is that any plan should be tailored to your unique circumstances, including your current lifestyle, income requirements, objectives, time horizon, and risk tolerance. If you don't already have a strategic financial strategy in place for Portugal, you may need to review your existing arrangement to ensure they are suitable and optimised in terms of taxation.

It is worth considering the taxation of investment income and gains, as well as the tax efficiency of any investments and pensions you may hold.

Another question to consider is how will you pass on any intended legacy to your heirs? Will they have to pay any inheritance or succession taxes? And, is it possible to pass the funds on without going through probate, or will your loved ones be subject to a lengthy and stressful legal process?


Everyone has a unique situation, so your financial planning needs to be designed accordingly. Take experienced, professional advice to ensure that you are fully aware of all the issues that may affect you.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this report constitutes a solicitation, recommendation, endorsement, or offer by HOLBORN or any third-party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction.

Holborn Insurance Agents, Sub-Agents & Consultants (Cyprus) Ltd authorised by the Cyprus Insurance Companies Control Services (ICCS) License number 5228. Passported to distribute Insurance activities and services in Cyprus, Spain, France, Malta, Belgium, Luxembourg, Sweden and Portugal.

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