Taxes on Pensions


My wife(Swedish) and I (Italian and American) have retired and been living in Spain for almost three years. We would like to move to Portugal but need to know if they tax pension income. I have been reading that they passed a law a year or two ago that makes pensions tax free for 10 years. Does anyone know anything about this?



I believe that you refer to the "Tax regime for non-habitual residents" in force in Portugal. Pursuant to this regime:

    - For a period of 10 years, taxation related to IRS (personal income tax) on labour income in Portugal is at a fixed rate of 20%
    - There will be no double taxation for pensions or for employment and self-employment income obtained abroad.

I hope this was helpful.


Yes, it is helpful. Thank you for your reply


Not valid for pensionist comming from the public sector. From private sectors pensionist there is a tax exemption that is alluring a lot of French retirees over the last years.
Post on spanish for you to read : … h-retirees
The legal frame work is volatile, and there is some pressure to review the tax heaven previously created from popular pression. For brit´s expat living mainly in the Algarve area, the brexit is a concern. In your situation try to network further and evaluate if this scenario is still appealing for you.

Hi Roy, according to the Portuguese Tax Information site they have tax treaties with a lot of Countries to avoid double taxation. It depends which Country your pensions are sourced from. Just google Portugal double taxation treaties and all should be clear to you, Cheers Roger

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