ROPS Portugal

About 50,000 Brits live in Portugal, most of whom are retirement age. Portugal has the Mediterranean climate, good food and the world’s 19th highest quality-of-life, according to the Economist Intelligence Unit. It also offers the opportunity for British expats to protect their savings from UK tax after their death and to convert pension funds to EUR to shelter it from currency fluctuations. All you do is register for a Recognized Overseas Pension Scheme (ROPS Portugal) which transfers your UK pension offshore. Find out more about ROPS Portugal below.

Benefits of ROPS in Portugal

A ROPS Portugal Pension Transfer gives you the following benefits:

* You avoid any sort of UK tax which includes income tax, dividends tax, capital gains tax (CGT) and 55% tax upon death * You can choose to have your pension transferred to the currency of your choice to shield it from currency fluctuations

* You can invest in whichever options you want.

* You have tax-free pensions for 10 years. After that, taxation reverts to standard Portuguese rates.

Since Portugal only lists ROPS that are group pension schemes, your best best would be to turn to ROPS schemes in Malta or Gibraltar

QROPS: Malta

Your best choice is to register for a ROPS in Malta which is known for its tightly regulated money transference scheme and friendly tax connections with various countries. Malta is also English-speaking.

ROPS: Gibraltar

You can also choose to register for a ROPS in Gibraltar, but the country gives you no Double Tax Agreement, so you end up paying the current rate of 2.5% tax to Gibraltar as well as the appropriate amount to Portugal.

When can I apply for a ROPS in Portugal?

Only consider opening a ROPS if you’re planning to live in Portugal for at least 183 days every year for at least five years, are 55 or older, and have at least £20,000 in your pension account. Any Portuguese working in Britain who has built up a UK pension can also register for a ROPS to avoid British deductions on that pension.