Money!
 

I am moving to Portugal at the end of September, and am working my way through the never ending list of things to do….

I am going round in circles on one thing and although I am sure this has been asked before, i would be really grateful if someone, anyone could help.

I will be living off a relatively small lump sum of money for the next ten years, at which point I will be entitled to my state pension and at that point I will then also have an additional amount which is currently tied up in property to supplement the pension to live on until I shuffle off.

the money I plan to live on for the next ten years is about to be released and I am very confused as to what to do with it. My uk financial advisor suggested putting it in an Isa or similar and drawing down a fixed sum periodically into a savings account, to then transfer to my Portuguese account, she is unable to advise on any investment outside the uk, and therein lies my question, I have googled financial advisor, Portugal and there seems to be quite a few! Other than Blevins Franks, could anyone recommend anyone who is cost reasonable and who will give some sensible advise please? Happy if you prefer to private message me.

sorry for the long post!

Re: Money!
 

If you are moving to PT and will be taking up residency then re check the advice you have received from your advisor re opening an ISA. My bank has told me that as a non resident of the UK you aren't eligible for an ISA(as it is a tax free a/c)and we will have to close our current one and transfer to one of our other savings accounts,which we are still able to keep. Re a PT advisor..I would do some homework yourself first before paying someone to do what you could do yourself. Many don't particularly know what they are talking about and just ready to take your money.

Re: Money!
 

That is not correct, see https://www.gov.uk/individual-saving...ou-move-abroad

Re: Money!
 

You will become a resident of Portugal in September, so from that point your investments, and your investment advisor will need to be legally permitted in Portugal, or in another EU country, so, as noted by Toots Sweet above, ISAs will be off the table for you and you should also be careful to ensure that any advisor is approved to operate in Portugal/EU. Many (most?) advisors in the UK will not be legally able to provide advice to you after you become resident in Portugal, unless they also maintain an EU presence.

Re: Money!
 

Really? How can PT prevent the OP from holding a UK ISA? Any interest will have to be declared in PT and any tax arising paid which of course will defeat the object of having a tax free [in the UK] ISA but that does not prevent the holding of such an account by an expat.

Re: Money!
 

In practice they can't, but the rules for ISAs spedicfy that you have to be tax resident in the UK (of course some people fudge that issue, by "parking" their investment using a relative's address when they leave the UK), but aside from the rules covering ISAs, as you pointed out, the income from an ISA will be taxable in Portugal anyway, so using an ISA as an investment vehicle would be pointless, as you would be bound by restrictions on ISAs but not benefit from the tax benefits.

Re: Money!
 

One must be tax resident in the UK when the ISA is first opened and if one then moves abroad, no further money can be put into that ISA after the end of the tax year of moving, but crucially, the account can lawfully remain open without the need to resort to underhand tactics.

Re: Money!
 

Ah yes, I did know that, thank you for reminding me. :o

Re: Money!
 

Cash ISAs are a waste of interest at the moment for non tax payers, there are better savings rates around. However, if the OP declares she has emigrated from the UK, it will be difficult to open or in some cases even keep any kind of account there. We've remained UK tax resident to avoid the problem.

Re: Money!
 

Yes I agree. Even the UK’s notorious money saving stalwart has recommended people close them but I am conscious not to stray into the arena of giving financial advice. :wink_smile:

Re: Money!
 

I wouldn't dare to give anyone specific advice, I don't know enough, I follow Martin's advice which nearly always agrees with others. At our annual Spring review (not via an advisor) I was happy to see savings interest rates at last starting to move upwards. Shame for those with mortgages though.

Re: Money!
 

Thank you everyone, I have realised it can’t be an Isa anyway as I could only put 20k a year into it. Btw, I will be maintaining a tax presence in the UK as I have a rented property I will be keeping. However I am thinking it’s probably better to put the money into an offshore investment that is tax efficient under Portuguese tax rules and is in euro rather than Stirling, so I think I have answered my own problem.

However I do need a good Portuguese financial advisor to help me do this, suggestions still needed please?

Re: Money!
 

Having a tax presence in the UK is not the same as being tax resident - tax residence is usually where you are currently living and you should avoid being tax resident in two countries as it can create an expensive mess.
Correct, it makes good sense to keep your assets in the same currency as your living expenses.

BTW "Stirling" is a city in Scotland, whereas British currency is (pounds) sterling. :)

Re: Money!
 

I am assuming that you have a Visa or an EU passport allowing you to move to PT?
What is taxed where is laid out in the tax agreement between the UK and PT so you might find it useful to check that out

Re: Money!
 

You might want to have a quick look at the thread below - Interesting point that AlanPT makes about how his PT colleagues don't bother with the tax efficient schemes. If you are confident / savvy enough to self invest then there are some platforms such as Interactive Investor and others that allow you to continue to hold and trade your investments as if you were in the UK. The trouble is that if you are looking at using it all over the next 10 years then you probably need to be in lower risk / return investments - which sounds like what your FA is suggesting.

Portuguese Finance Tips - British Expats