Moving to Portugal? The UK assets you still need to worry about

One of the biggest misconceptions I come across is this:

“Once I’m out of the UK, the UK is basically out of my financial life too.”

Unfortunately, that is very rarely true.

For many UK nationals moving to Portugal, the real planning work does not begin after the move. It begins before it, by understanding which parts of your wealth still remain tied to the UK, how those assets are treated once you become Portuguese tax resident, and what needs to change before small issues become expensive ones.

That is where cross-border advice matters.

At Atlas Bridge Wealth, our focus is not simply on products or portfolios. It is on helping people navigate the financial crossing itself, the move from one tax system, one legal environment, and one advice framework into another. That “bridge” approach sits at the heart of the firm. 

It is not just about where you live. It is about where your assets still sit.

A lot of people relocate to Portugal with a UK property, UK shares, UK pensions, UK bank accounts, UK bonds, or legacy UK structures they have never revisited.

They may have changed country.

But they have not yet changed financial geography.

That matters because UK situs assets — broadly, assets legally treated as located in the UK — can still remain relevant for UK inheritance tax purposes even after you have left the UK. Ross Naylor’s article frames this well, especially for long-term expats who assume distance alone solves the problem.

Why this has become even more important

From 6 April 2025, the UK moved inheritance tax onto a long-term residence basis rather than the old deemed domicile framework. In broad terms, HMRC says that foreign assets can fall within UK inheritance tax where someone is a long-term UK resident, generally meaning at least 10 out of the previous 20 tax years. If someone is no longer a long-term UK resident, UK situs assets can still remain within scope.

Then there is the next major shift: from 6 April 2027, the government plans to bring most unused pension funds and death benefits into scope for inheritance tax as well. That is a significant change for internationally mobile families who have historically seen UK pensions as sitting outside the estate.

So the issue is no longer just, “Do I still own something in the UK?”

It is also, “How exposed is my family if I do nothing?”

The real issue is broader than inheritance tax

For a UK expat moving to Portugal, UK assets are not just an inheritance tax discussion. They are also a doing this in the correct order, reporting, structure, and income-planning discussion.

For example:

A UK pension may still be perfectly valid.

But how you draw from it after becoming Portuguese tax resident can materially affect the tax outcome.

A UK adviser may still be able to advise on UK-situs products, but once the client is Portuguese tax resident, the suitability risk changes because Portuguese tax treatment now matters. That is precisely the cross-border boundary explored in your white paper. 

Similarly, pension income planning is not just about the UK scheme. It may also involve whether an NT tax code is needed so UK PAYE is not withheld unnecessarily, and whether the income could qualify in Portugal as Category H with a capital/income split rather than being treated in a less efficient way. 

That is why the planning gap is often not the asset itself.

It is the failure to reposition the asset properly once your life has moved.

Case study: David and Helen

David and Helen are in their early 60s and planning a move from Surrey to the Algarve.

On paper, they feel well prepared.

They own:

• a UK home worth £950,000

• a buy-to-let worth £420,000

• a joint portfolio of UK shares and funds worth £600,000

• two UK pensions worth roughly £1.4 million combined

• surplus cash in UK bank accounts

They assume that once they become Portuguese tax resident, their main planning concerns will be healthcare, residency paperwork, and where to live.

But the real issues are elsewhere.

First, they still hold a meaningful amount of UK situs wealth. That means parts of their estate can remain relevant to HMRC, and UK inheritance tax, regardless of the fact they now live abroad.

Second, their pensions are not something to “leave until later.” If withdrawals begin without the right tax treatment, without the right 'sequencing', or without understanding how Portugal may classify the income, they could create avoidable tax drag. 

Third, from April 2027, 'unused' pension wealth may no longer enjoy the same inheritance tax position many families have relied on for years.

And fourth...

Which assets should stay in the UK, which should be restructured, and which decisions need to be taken before the move rather than after it?

That is often where the value lies.

Not in reacting to the move.

In doing this in order, correctly.

The wider point

When someone relocates to Portugal, they are not just changing address.

They are stepping into a new tax framework, a new set of reporting obligations, a different treatment of pensions and investments, and a different regulatory environment around who can advise on what.

That is why Atlas Bridge Wealth is built around the idea of the cross-border bridge — helping clients think clearly about the UK side and the Portugal side together, not as two disconnected conversations. 

A few practical questions worth asking before or shortly after the move

• Which of my assets are still effectively “UK assets” for tax purposes?

• Do I still need every UK structure I currently hold?

• Are my pensions positioned properly for Portuguese tax residency?

• Should I be applying for an NT code before drawing pension income? 

• Could my withdrawals be taxed differently in Portugal depending on how they are taken? 

• What happens to my estate if I die in Portugal while still holding UK property, UK investments, and UK pensions?

• If I later return to the UK, how does that change the picture again?

Final thought

Leaving the UK may be the lifestyle decision.

But repositioning your wealth is the planning decision.

And the two should never be separated.

For many British families moving to Portugal, the danger is not that they have done something obviously wrong. It is that they have done nothing at all — and allowed legacy UK assets, outdated structures, and poor sequencing to follow them into a completely different tax environment.

That is where careful cross-border planning can make a real difference.

If you are moving to Portugal, already living here, or trying to work out what to do with UK pensions, property, or investments after the move, it is worth reviewing the structure before the rules — or your circumstances — move against you.

If you’d like to discuss your own position, I offer an initial Discovery Call for UK expats and internationally minded families planning a move to Portugal, already living here, or reviewing their UK assets post-move.

You can book a time here: https://calendly.com/steve-atlasbridgewealth

Disclaimer

This article is for general information only and does not constitute financial, tax or legal advice. The appropriate strategy will depend on your residency status, asset base, family circumstances, and the jurisdictions involved. Specialist cross-border advice should always be taken before acting.