# Zero tax on expat pensions ??



## siobhanwf (Mar 20, 2009)

Zero tax on expat pensions - The Portugal News


full article will be available to read tomorrow


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## canoeman (Mar 3, 2011)

Wait for the full article before you celebrate, and won't apply if your already a Resident


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## jerryceltner (May 15, 2012)

If you get a state pension then it has to be taxed in the UK.

If you get a private pension or annuity and can prove this and declare it in your Portuguese tax returns then you can claim 7700 euro tax free. The allowance may have risen since I looked at it but I have been claiming mine tax free for the last 4 years +

All legal and above board.


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## canoeman (Mar 3, 2011)

jerryceltner said:


> If you get a state pension then it has to be taxed in the UK.
> 
> If you get a private pension or annuity and can prove this and declare it in your Portuguese tax returns then you can claim 7700 euro tax free. The allowance may have risen since I looked at it but I have been claiming mine tax free for the last 4 years +
> 
> All legal and above board.


Only a UK Government Employees Pension like service personnel, police, public servants etc *has to be taxed in UK* a standard Old Age Pension doesn't, as you say annuities you can claim, but a company paid pension would form part of your world wide income for tax purposes here.


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## anapedrosa (Mar 21, 2011)

My understanding is that the clarification of the law with regards to pension is related to the non-habitual residence regime put into place in 2009. So this would only be relevant to those who have applied (or are applying) and are accepted to the non-habitual regime (applications must be submitted in the year of application for residence).

The news articles are very misleading. For most people it will be business as usual. Taxation of foreign income is governed by tax treaty.


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## Ronnie_Yook (May 9, 2012)

As Ex-Pats, we are officially resident in Portugal. Previously we visited the Financas in Pedrogao Grande, the manager confirmed that UK State Pensions were not taxable in Portugal, and we did not have to complete a tax return for Portugal.

The manager, then explained that only if we were carrying out any financial transactions or earnings here in Portugal are we liable for taxation in Portugal...confused?


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## canoeman (Mar 3, 2011)

Ronnie_Yook said:


> As Ex-Pats, we are officially resident in Portugal. Previously we visited the Financas in Pedrogao Grande, the manager confirmed that UK State Pensions were not taxable in Portugal, and we did not have to complete a tax return for Portugal.
> 
> The manager, then explained that only if we were carrying out any financial transactions or earnings here in Portugal are we liable for taxation in Portugal...confused?


They are if your pension/s is/are above the non taxable "earnings" in Portugal. 

Portuguese Residents have to declare "worldwide" earnings and Pensions come under earnings same as UK.


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