International SIPP Portugal

The International SIPP for Portuguese residents is a flexible type of pension plan that allows you to access your pension fund as and when you please during your retirement abroad. It also facilitates consolidating and managing existing UK pension schemes inline with your retirement goals.

Given the changes in legislation, the International SIPP in Portugal is the only viable type of expat pension plan available.

What is an International SIPP?

An International SIPP is a UK-based pension scheme designed for expatriates and non-residents who want to manage their UK pension while living abroad. It allows you to access your pension funds and provides greater flexibility and control over investments compared to traditional pension plans.

QROPS Portugal Changes To Legislation

With the changes in the UK budget in 2025, transfers to QROPS accounts will likely attract a 25% overseas transfer charge penalty. With the government's new legislation, the OTC now applies to all pensions where the pension account is held in a different jurisdiction to where the policyholder lives. So, given almost all QROPS schemes at the time of writing are based in either Malta or Gibraltar, a Portuguese resident could no longer access these pensions without losing 25% of their UK pension to the overseas transfer charge.

If you hold a QROPS as a Portuguese resident, you may be able to transfer your account to an International SIPP which would likely significantly reduce your long-term running costs, as well as providing an additional layer of regulation and protection.

UK Pensions In Portugal How Do They Work?

If you hold existing UK pension schemes as a Portuguese resident, it's vital you understand how they work now you live outside of the UK, as well as their potential limitations.

Post Brexit, most UK pension providers (Standard Life, ReAssure, Scottish Widows, Aviva) will no longer offer full flexibility in your retirement. This means you may not be able to continue to manage the underlying investments, as well as take an income when you wish. If this is the case, it is worth considering consolidation and transferring your UK pension pots into an International SIPP for Portuguese residents.

SIPP In Portugal The Key Benefits

Utilising an International SIPP in Portugal can offer retirees the following benefits:

  • Full flexible access to your pensions in retirement, meaning you can let the money grow over time, or take an income however and whenever you wish.

  • Ability to have proceeds paid into any international bank account in your name, particularly useful for expats who no longer have a UK bank account.

  • Ongoing professional management of the investments, with a whole of market investment range including Vanguard, Blackrock, Fidelity - as opposed to only accessing funds from your UK pension provider, which come at a greater cost.

  • Multi-currency investment options, meaning you can hold your pension fund in Euros as opposed to Sterling - meaning you have the option to mitigate currency risk if you are worried about exchange rates.

What Is The Best Pension For Expats In Portugal?

In terms of the International SIPP, there are dozens of providers available to expats. Key factors to consider include cost, service standards and accessibility. You can view a full breakdown and comparison of International SIPPs here.

At the time of writing, we believe the best pension account for Portuguese residents is offered by Novia Global and Morningstar.

Pension Transfer Advice Portugal

International retirement and pension planning can be complicated, with lots of contrasting information online. It can be difficult to know who to trust, as well as which type of pension is the best for you as you navigate life abroad.

The Wealth Genesis and our team of advisers are dual qualified in both Europe and the UK, meaning we can provide the best possible independent financial advice to Portuguese residents. We have advisers in Lisbon, the Algarve and Madeira, along with providing advice over online meetings and calls.

Our zero commission, flat-fee approach to all UK pension transfers ensures the best possible value for our clients, alongside our industry leading management fees.

If you live in Portugal and have UK pensions, you can schedule a free initial online consultation using the diary below to understand how our team can help you.

FAQs

  • No, you cannot transfer your UK pensions directly into Portugal. UK pensions can only be transferred to HMRC recognised retirement vehicles - these are international SIPPs and QROPS pensions. SIPPs are based in the UK and QROPS are typically in Malta.

  • The International SIPP is the stand out option for expats in Portugal, especially with the introduction of the overseas transfer charge. This means QROPS no longer make any sense as a pension plan in Portugal, as you would lose 25% of your pension upon transferring.

  • This depends on your tax status, notably your NHR status. If you do not have NHR, pension income is taxed at your marginal rate of income tax in Portugal, which is much higher than the UK.