[Ukkram]

I am taxed locally on my pension. When I move to PT will I be taxed again here?
Or will I not be taxed in the UK but only here in PT after I relocate?
Sorry but I am a dodo with this.

[abi31]

Most countries have a double taxation agreement with the UK meaning you'll only get taxed once - don't know specifics for Portugal but with them being EU I have no doubt they will have this too.

[liveaboard]

You will only be taxed once IF you have a competent tax accountant.
I had a bad one and was taxed twice, then found a good one and now I'm only taxed once.
Anyone may feel free to send me a PM, and I'll name names.
To send PM, click on my screen name on the left.

[TaviraTrog]

If you mean your UK state pension then you can have that paid and taxed here. The advantage to having it taxed here is that you can offset any health related expenses against it as long as you have the proper receipts. You'll have to get in touch with HMCR to arrange this otherwise it will automatically be taxed at source.

[Ukkram]

Thanks guys. No. It is my private pension that I control myself on the stock market.

[tonyj4]

Originally Posted by TaviraTrog If you mean your UK state pension then you can have that paid and taxed here. The advantage to having it taxed here is that you can offset any health related expenses against it as long as you have the proper receipts. You'll have to get in touch with HMCR to arrange this otherwise it will automatically be taxed at source.

Very interested in this thread - we have not sorted out our pensions as we have not bought a house yet (we've been in Portugal since March). Both of us have state pensions and I also have a private one. We thought that we would continue to have our pensions paid into our UK accounts and transfer funds as necessary into our Portuguese bank account by one of the money transfer companies at no cost. From what you say that is not the best option, is it? What you say about health bills may or may not apply to us, we have got S1 forms but haven't registered with a doctor but understand that our health care and any prescriptions will be free or very little cost, have we got that wrong?

Would appreciate your views.

[tonyj4]

Originally Posted by tonyj4 Very interested in this thread - we have not sorted out our pensions as we have not bought a house yet (we've been in Portugal since March). Both of us have state pensions and I also have a private one. We thought that we would continue to have our pensions paid into our UK accounts and transfer funds as necessary into our Portuguese bank account by one of the money transfer companies at no cost. From what you say that is not the best option, is it? What you say about health bills may or may not apply to us, we have got S1 forms but haven't registered with a doctor but understand that our health care and any prescriptions will be free or very little cost, have we got that wrong? Would appreciate your views.

Sorry realised I forgot to add that I thought it would be easier to get all my income taxed in the UK and then do a "nil" tax return here in Portugal, but maybe that is not such a good idea?

[TaviraTrog]

It's a complicated issue. We are registered with the PT health authorities so any prescriptions, charges to see the doctor etc can be offset against your PT tax. We both have our UK state pensions paid into our PT bank account and have it taxed here. So, far we have paid no tax on this due to the medical receipts we have provided.

Both of us also have pensions from UK government departments which we have no choice but to have paid into our UK bank account and taxed there. We still have to declare it but, as it is taxed in UK we pay no tax on it here.

[Coati]

Surely with the new tax allowance UK even 2 state pensions will attract virtually no tax?

or am I missing something?

[Ukkram]

If you get a pension from UK government, it is taxed in the UK. Not in PT again. You must state this in PT. Private pensions are taxed where you reside for longer than 185 days py. In this case PT. This is to prevent you paying tax twice.
UK has a Double Taxation Agreement with PT. The term "Double Taxation" means the avoidance of paying tax twice.
People see the term "Double Taxation Agreement" as paying tax 2 times. Not so. It is an agreement to prevent paying tax twice.

[sunshineforever]

I know how to get around these taxation regulations for your pension, happy to talk about it and put you in touch with the company with the knowhow

[Mitzyboy]

Originally Posted by sunshineforever I know how to get around these taxation regulations for your pension, happy to talk about it and put you in touch with the company with the knowhow

Maybe it would be more useful to tell us here how it is possible

The double taxation treaty, as stated, is there to ensure you are not texed twice but it doesnt mean you can choose where your pension is taxed. You pay your tax in your country of (tax) residence in the majority of cases.

As stated, if you have both state and government pensions you end up with the state pension taxed in Portugal and the Govt pention taxed in the UK, and therefore take advantage of both country tax allowances. In some cases this can mean that you pay little or no tax.

[nigel.b]

As I understand it the position is this:

If you are living in PT (tax resident) you must declare ALL your worldwide income to the PT tax authorities.

In particular you can't:
(a) pick and choose what to declare in PT and what to declare in the UK,
(b) say 'my pension's been taxed in the UK so I don't need to declare it in PT'.

To invoke the Double Taxation thing you need to go through a process, probably using a PT accountant.

So tonyj4's idea of paying all tax in the UK and effectively ignoring the PT tax system is a non-starter if he is living here and wants to do things correctly.

Caveat: no-one should take important decisions based on stuff read on a forum!

[John & Kath]

Originally Posted by Mitzyboy Maybe it would be more useful to tell us here how it is possible The double taxation treaty, as stated, is there to ensure you are not texed twice but it doesnt mean you can choose where your pension is taxed. You pay your tax in your country of (tax) residence in the majority of cases. As stated, if you have both state and government pensions you end up with the state pension taxed in Portugal and the Govt pention taxed in the UK, and therefore take advantage of both country tax allowances. In some cases this can mean that you pay little or no tax.

I think he is a QROPS SPAMMER and does not understand the difference between a Government or Crown and a Private or Personal pension. Also the DTT and it's advantages when you have a GP and an SP!

[John & Kath]

Originally Posted by nigel.b As I understand it the position is this: If you are living in PT (tax resident) you must declare ALL your worldwide income to the PT tax authorities. In particular you can't: (a) pick and choose what to declare in PT and what to declare in the UK, (b) say 'my pension's been taxed in the UK so I don't need to declare it in PT'. To invoke the Double Taxation thing you need to go through a process, probably using a PT accountant. So tonyj4's idea of paying all tax in the UK and effectively ignoring the PT tax system is a non-starter if he is living here and wants to do things correctly. Caveat: no-one should take important decisions based on stuff read on a forum!

The DTT TELLS YOU WHERE YOU WILL PAY YOUR TAX and you inform HMRC on the form FD9 which is submitted to the Portuguese tax office for signature and stamp before return to HMRC.