Do I still pay UK tax?

When you move to Portugal you usually stop being UK resident for tax and become Portuguese resident instead. Both countries can split the year you move, and a new UK–Portugal tax treaty has applied since 2026, so it pays to get the paperwork right on both sides.

Tell HMRC you’re going

Are you still UK resident?

The Statutory Residence Test decides your UK status for each UK tax year (6 April to 5 April):

• You are usually non-resident if you spend fewer than 16 days in the UK (46 if you weren’t UK resident in the 3 previous tax years)
• You are also usually non-resident if you work full time abroad and spend fewer than 91 days in the UK, with no more than 30 of them working
• When you leave part way through a year, “split-year treatment” usually divides it, so you only pay UK tax on foreign income for the time you lived here. You won’t get it if you come back within a full tax year

When Portugal starts taxing you

Portugal’s tax year is the calendar year. You are tax resident in a year if either applies:

• You spend more than 183 days in Portugal, in a row or not, in any 12-month period that starts or ends in that year. Any day that includes a night in Portugal counts
• You spend less time, but on any day in that period you have a home there in conditions that suggest you intend to keep it as your usual residence

Unlike Spain, Portugal splits the year: you become resident from your first day there, and stop being resident from your last day (with anti-avoidance exceptions). Residents pay income tax (IRS) on income from anywhere in the world and file between 1 April and 30 June for the year before. In 2026 the mainland rates run from 12.5% on the first €8,342 to 48% above €86,634. Madeira applies rates 30% lower in all bands from 2026, and the Azores also set lower rates. In September 2026 the government announced a further small cut to the lower bands for 2026 income, which still needs approval. If both countries claim you, the treaty’s tie-breaker looks at your permanent home, then your centre of vital interests. See How much tax will I pay in Portugal? and compare take-home pay with the pay calculator.

The new UK–Portugal treaty

A new double taxation convention was signed on 15 September 2025 and came into force on 29 December 2025. It applies in Portugal from 1 January 2026 and in the UK from 6 April 2026 for income tax and capital gains tax. Under it:

• Rent from UK property, and gains on selling it, can be taxed in the UK; Portugal also taxes them and gives a credit (see your UK home)
• UK interest can be taxed in the UK at no more than 10%, and UK dividends at no more than 10% (15% for some property funds), with a credit in Portugal
• Private pensions are taxed only where you live; UK government service pensions are usually taxed only in the UK (see What happens to my UK pension?)
• Most other gains, such as on shares, are taxed only where you live

NHR has closed; IFICI replaced it

The non-habitual resident (NHR) regime closed to new entrants at the end of 2023; people already in it keep it for the rest of their 10 years. Its replacement is IFICI (the tax incentive for scientific research and innovation, often called “NHR 2.0”). It offers a 20% rate on Portuguese employment and self-employed income for 10 years, and exempts most foreign income except pensions, but only if:

• You weren’t Portuguese tax resident in any of the previous 5 years, and have never had NHR
• You work in a qualifying role, such as higher education and research, highly qualified professions at certain exporting or investment-backed companies, R&D posts, certified start-ups, or roles at companies recognised by AICEP or IAPMEI
• You register by 15 January of the year after you become resident (late registration only gives you the remaining years)

IRS Jovem

If you are 35 or under, part of your employment and self-employed income is exempt for up to 10 years: 100% in the first year of earning, 75% in years 2 to 4, 50% in years 5 to 7 and 25% in years 8 to 10, up to a cap of 55 times the social support index (IAS). You choose it on your return. You can’t combine it with NHR or IFICI.

ISAs and what else to tell

• You can keep your ISA and it stays tax-free in the UK, but you can’t pay in while non-resident. Don’t assume Portugal treats it as tax-free: as a resident you are taxed on worldwide income, so ask a Portuguese adviser how to report it. See How do I move money from the UK?
• Tell the Student Loans Company if you’re leaving for more than 3 months
• Child Benefit usually only continues if you are covered by the Withdrawal Agreement or still pay UK National Insurance