# UK Pensions



## Tonyjo (Jun 28, 2012)

My wife have state and employment pensions in the UK.

We will shortly be buying a house for a permanent home in Portugal.

Should or pensions continue to be payed and taxed in the UK with money transfered as needed to Portugal or the pensions transfered and taxed in Portugal. Which is the better option if it is permissable either way?


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## JohnBoy (Oct 25, 2009)

I am in a similar situation as far as the pensions go Tonyjo but do not own a property here. I recently had a simulation done by a PT accountant and it worked out cheaper to continue to have my pensions paid and taxed in the UK.

Everyone has their preferred method of transferring money out here but for me it is the UK to Millennium Bank system. Assuming you have online banking in the UK you simply make a transfer to the Millennium Bank branch in London who immediately exchange the GBP to EUR and transfer the money to your Millennium account here. There are no bank charges and the exchange rate is the best that I have found. Any transfer I have made has always been in my account here the next working day so long as the UK bank transfer has gone through by 2 p.m.


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## canoeman (Mar 3, 2011)

You can opt for UK tax or Portugal but either way if your income (pensions) is above min wage you must still make a tax return in Portugal, if you opt for UK tax you still declare and tax paid, with reciprocal tax agreement you are not taxed on same income twice.

You need to find out what for you the best option is, you don't mention yourself Portuguese tax returns & allowance look at a "family unit" not individual as UK.

I use Millennium as well, the transfer is done via HSBC, as Johnboy says quick and very good rate, certainly quicker than having UK Pension paid direct to Portugal.


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## Tonyjo (Jun 28, 2012)

Many thanks for the helful advice


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