Juleskitoo

Hello,

I've tried without success to get this information from a tax specialist in Portugal who are proving particularly useless.

I'm about to press the button on gaining NHR, but have a lump sum pension which I'm going to cash in at the start of next month. My question is whether this is seen as part of my pension (and therefore taxed at 0-10% (depending on the change) or seen as income and therefore taxed (I'm assuming) quite heavily. Its going to be about £10K in value.

Many thanks in advance guys - I know some of you have provided really excellent advice on this forum on similar subjects. .

Jules

Diddion

The tax free cash from pensions is a UK-specific arrangement, not recognised in Portugal. In other words, Portugal does not distinguish between pension lump sums and the remainder - it is all treated as income, and will all be taxed under your NHR regime, at 0 or 10%. Therefore, if you are not a Portuguese tax resident yet, it would make sense to take the tax free cash whilst a UK tax resident (but I think you must already be a PT tax resident, from your question), and the remainder in Portugal

Juleskitoo

Ah, good man Diddion. I was hoping for some sound, clear advice so thanks for that. I'm not quite yet registered but know which way to jump now.

Thanks again,

Jules

Diddion

Pleasure!