# Madeira UK pension taxation



## DGP (Jan 23, 2021)

Hi, I’m contemplating a move to Madeira, has anyone had recent experience in getting UK state and company pensions paid without deductions of UK tax, then successfully transfer to Madeira where it is taxed at 10% , subject to NHR status? Any practical advice gladly received.


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## martinktilston (Jan 24, 2021)

Hi...I'm sorry I don't have the advice you seek at the moment, although I am looking to move to Madera also, so there may be a common connection there in the long run...I'm just trying to find out how 'do-able' it is, and the basics of how to go about it. Government advice is just so long winded, so I'm looking for an 'idiots guide' to the process from anyone in the know with the major pitfalls / benefits and cautionary notes..???..


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## DGP (Jan 23, 2021)

martinktilston said:


> Hi...I'm sorry I don't have the advice you seek at the moment, although I am looking to move to Madera also, so there may be a common connection there in the long run...I'm just trying to find out how 'do-able' it is, and the basics of how to go about it. Government advice is just so long winded, so I'm looking for an 'idiots guide' to the process from anyone in the know with the major pitfalls / benefits and cautionary notes..???..


Hi Martin (?) snap! It certainly looks doable but likewise I’m wanting to hear from someone who has had practical experience. If you need to pay for professional help then so be it but I need to understand the pros & Cons first. If it’s possible to get my pensions in the UK paid gross then the next issue is to have a banking service to transfer them to Madeira, where they will be taxed at 10% , provided you can gain NHR status. Sounds like we both want to find the best route to achieve this? It could be good to share information and try to get wider input to this topic? 
I appreciate your contact!
Thanks. David.


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## Debbie. (Feb 3, 2021)

DGP said:


> Hi Martin (?) snap! It certainly looks doable but likewise I’m wanting to hear from someone who has had practical experience. If you need to pay for professional help then so be it but I need to understand the pros & Cons first. If it’s possible to get my pensions in the UK paid gross then the next issue is to have a banking service to transfer them to Madeira, where they will be taxed at 10% , provided you can gain NHR status. Sounds like we both want to find the best route to achieve this? It could be good to share information and try to get wider input to this topic?
> I appreciate your contact!
> Thanks. David.


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## Debbie. (Feb 3, 2021)

Hello, I also am hoping to retire to Madeira. Please can anyone recommend a good lawyer/ business that can advise the best way to achieve this? Is buying a home straightforward 
? Is there a purchase tax ? Now post Brexit, what is the best way forward regarding my state pension?


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## digitalemigre (Feb 5, 2021)

Debbie. said:


> Hello, I also am hoping to retire to Madeira. Please can anyone recommend a good lawyer/ business that can advise the best way to achieve this? Is buying a home straightforward
> ? Is there a purchase tax ? Now post Brexit, what is the best way forward regarding my state pension?


Hi Debbie, 

I've recently moved to Madeira from the UK. I'm not retired (yet), but I've been working with an excellent immigration lawyer here in Funchal to handle residency issues (and later submit my application for Portuguese citizenship). Her name is Sandra Fernandes, at Valadas Coriel & Associates. Let me know if you'd like an intro. 

In terms of your pension, the most important thing is to apply for NHR (non-habitual residency) status, which caps the pension tax at 10%. As your pension is classed as passive income, you should be able to get residency in Madeira under the D7 visa option. It's fairly straightforward, but you'll need to apply in the UK. Here's an article I wrote explaining how to do it. The D7 Portugal Visa (How to Beat Brexit) - Digital Émigré

Madeira is a fantastic place, I hope you manage to move here!

Best wishes,
Samantha


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## Debbie. (Feb 3, 2021)

digitalemigre said:


> Hi Debbie,
> 
> I've recently moved to Madeira from the UK. I'm not retired (yet), but I've been working with an excellent immigration lawyer here in Funchal to handle residency issues (and later submit my application for Portuguese citizenship). Her name is Sandra Fernandes, at Valadas Coriel & Associates. Let me know if you'd like an intro.
> 
> ...


Hi Samantha,
Many thanks for your brilliant reply ! 
At present, I own three small shops I rent out in the UK. This last year has been a nightmare getting in the rent. So I am in the process of selling them if I can. Then, when I sell my house, my intension is to buy two properties in Madeira one to live in one to rent out. Do you know if this would be acceptable under the terms of the D7?
Also, is it easy to live there with minimal Portuguese language? 
I hope you are settling in well. What is the weather like ?
Best regards,
Debbie.


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## Debbie. (Feb 3, 2021)

Debbie. said:


> Hi Samantha,
> Many thanks for your brilliant reply!
> At present, I own three small shops I rent out in the UK. This last year has been a nightmare getting in the rent. So I am in the process of selling them if I can. Then, when I sell my house, my intension is to buy two properties in Madeira one to live in one to rent out. Do you know if this would be acceptable under the terms of the D7?
> Also, is it easy to live there with minimal Portuguese language?
> ...


 Sorry meant to ask you for the intro to the Lawyer. Can you please tell me the likely costs involved?
Also is there a purchase tax on buying property there? 
Sorry so many questions. . . X


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## digitalemigre (Feb 5, 2021)

Debbie. said:


> Sorry meant to ask you for the intro to the Lawyer. Can you please tell me the likely costs involved?
> Also is there a purchase tax on buying property there?
> Sorry so many questions. . . X


Hi Debbie, 

I'll do my best to answer your questions. I don't know about purchase tax on property, as I've only been renting so far. For D7, the income needs to originate from outside of Portugal, but your UK state pension should cover that. You only need to meet the Portuguese minimum wage per month, which is around €750. 

Having the Madeira rental property will be extra income on top, but you'll have to pay Portuguese tax on it. If you get NHR, I think that tax will be capped at 20%. NB, I'm not a lawyer or accountant, so please check with one before taking any action based on this advice. 

The lawyer fee is around €2000 plus VAT, to handle the whole residency application including tax number and other bureaucratic hassles. It sounds like a lot but can save a lot of stress, especially in times of Covid, when it's difficult to get to Portugal in person. I'm happy to intro you. You can either DM me your email address here, or contact me via my website: Contact - Digital Émigré

Madeirans have compulsory education in English from primary school level up, so it's extremely easy to get around in English, more so than even in Lisbon! 

We've had rain today, but most of the week has been 18 or 19° and sunny! 

Hope this helps, 
Best wishes, Samantha


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