# Tax on pension



## DREAMWEAVER1 (May 28, 2013)

We are about to move to central Portugal and as I am retired and only have pensions as an income am I better to have it taxed in the UK or Portugal? Would appreciate your advice.


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## canoeman (Mar 3, 2011)

How longs a piece of string, afraid it depends on value of pension or pensions, type of pension some UK Pensions must be taxed in UK, you really require a account/bookeeper to run a couple of simulations for you

As a ballpark a married couple receiving basic UK Old age pensions from UK and didn't opt for Portuguese taxation would not pay any taxes in Portugal.

*They must or any individual still file a Portuguese tax return though if pensions. earnings + 293€ per month*


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## DREAMWEAVER1 (May 28, 2013)

Thanks canoeman I appreciate it is asking how long is a piece of string?


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## canoeman (Mar 3, 2011)

Accountants/bookkeepers are cheap here and would probably advise you for free, it's getting the question right I'm afraid

Simulation 1. ask if all my income was taxed in Portugal what would my tax be?
Simulation 2. If my income was taxed in UK but reported here what would my tax be? 

First thing they'll probably say is you're a foreigner don't bother, well the min reporting level changed in 2012 so really rather foolhardy advice, as although you might not need to pay any tax you could be fined for not filing IRS return

For Q1&2 You'll need to know your UK income for the Portuguese Tax Year Jan to Dec, estimated medical expenses and anything else you might be able to claim

for Q2 same but also you'll need to know UK tax paid

Unlike UK returns are submitted for a family unit and your allowance etc and tax due worked on that not individual taxation and personal allowances as UK


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